July 22--If the new retirement isn't retiring at all but rather transitioning to a second or third career, the key seems to be pivoting from where you are rather than jumping wholesale into something new.
At 76, longtime New York commercial real estate adviser Jerry Swartz is partnering with a fledgling crowdfunding platform, CityFunders, while maintaining his traditional advisory business. Created after new federal legislation eased marketing restrictions for startups, CityFunders offers accredited investors (at least $1 million in net worth or annual income above $200,000) access to real estate development projects. One of the first offerings is a luxury apartment, parking and retail complex being developed in Queens, N.Y.
We asked Swartz a few questions about the inherent investment risk in the deals he's offering, working with much younger partners and parlaying one set of skills into a new venture. Here's an edited version of the conversation.
Q: Given the rise of 401(k) plans over traditional pensions, it's not that rare today to find retirees with more than $1 million in investable assets. With a fairly low entrance hurdle and a pretty significant risk profile, isn't this a prescription for investment disasters?
A: No one should be investing without complete confidence and understanding of what they are putting their hard-earned dollars into. Our partners all have skin in this game and the (financial depth) to complete projects.
Q: CityFunders CEO David Behin told me he wanted to partner with you because of your industry connections, your experience on the debt side of real estate financing and because part of CityFunders' customer base will likely be older investors who can relate to your, uh, gray hair. How did you position all these qualities?
A: I do have relationships in this industry that go back a couple of generations, and I bring those to the table -- along with the gray hair. All of my social relationships have been forged with business associates, and it's been that way for more than 45 years. It works for me. I've never been afraid to put friends and family into my (real estate) transactions. In my life I've had two wives (one who passed away), five children and 11 grandchildren. I'm a huge New York sports fan and am into theater. There's no one I can't connect with on some level, no matter their age.
Q: Do you feel any pressure to act younger around colleagues?
A: I don't have a Twitter account and am not on other social media. I do go out partying at night with people in their 20s and 30s. I work out and love my unique cars -- sports and fast.
Q: Can you give an example of a time when you mentored a younger person and it paid off in a tangible way?
A: There was one young man who I taught the business to and who eventually became a broker at my firm. At one point he quit and moved on, but I told him he could always come back if he wanted. Today he's my biggest client.
Q: Conversely, how should young entrepreneurs think about older ones?
A: A lot of young people are very smart, but they lack sophistication -- and money. The way they can get ahead is by finding someone who has already been there and partnering with them. You can't go to a bank and say you have a great desire to build a company. It just isn't going to work without a track record. You partner up with someone and do a couple of deals for the experience, and then you can go out on your own and get a loan.
Share your journey to or through retirement or pose a question at journey@janetkiddstewart.com.
