So you're in your 40s or 50s and ready to say "take this job and shove it." You're not alone. Many people yearn to make a career switch, but doing so often requires additional training. Can you afford to go back to school, pay your bills and support your family at the same time? The following tips can help you find your way.
By LAURA T. COFFEY
Published March 7, 2004
1. Know what's out there. Do some research about the field that interests you. Check out the U.S. Department of Labor's Occupational Outlook Handbook at your public library or on the Internet at www.dol.gov It provides information about pay scales and demand for qualified workers in hundreds of fields.
2. Make connections through professional associations. Your area of interest probably has at least one professional association. Such a group may offer mentoring programs and advice to help you break into that field.
3. Overcome negativity. Don't be paralyzed by thoughts such as, "I'm too old to make a change," or, "If I do this, I'll be starting over at the bottom." Over the years you've acquired a wide range of skills that could make you highly attractive to future employers. You just need to be able to weather the transition financially, likely by working and retraining at the same time.
4. Don't reinvent the wheel. Find out how you can earn college credit for your years of on-the-job experience and prior learning through the American Council on Education's College Credit Recommendation Service (www.acenet.edu/calec/corporate/) and the Council for Adult and Experiential Learning (www.cael.org)
5. Test out of courses when you can. You can earn three to 12 college credits by passing an inexpensive, 90-minute College Level Examination Program (CLEP) test.
6. Will your employer help you pay for tuition? Many employers will cover at least some portion of their workers' educational costs. Up to $5,250 of the tuition assistance money you get is tax-free.
7. Tap your savings to pay for school. Use money not stashed away in tax-deferred accounts first. Next, consider taking money from your Individual Retirement Account (IRA); you'll be taxed, but the 10 percent penalty for withdrawing early will be waived if the money is used for education.
8. Borrow conservatively. You can apply for federally guaranteed loans, which have low interest rates at the moment. You also can borrow against a cash-value or permanent life-insurance policy; such loans usually are tax-free. Don't borrow from your 401(k), though.
9. Timing is everything. Ideally, you should be fully vested in your current company's pension or profit-sharing plan before you leave, and you should have a plan in place to maintain health-insurance coverage.
10. Seek out tax relief. Several tax benefits are available for people who return to school, including a deduction of up to $3,000 in tuition expenses if your adjusted gross income isn't too high, interest deductions of up to $2,500 on education loans, and a lifetime learning tax credit.
