Retirement

[doctor Bob]

I'd like to do an OU maths degree. That should keep the brain going.

 

[Bazjay]

If you are a sole trader, the contract will be directly with you... so if you retire, the contract is gone - therefore it has no value outside you...
potentially if the contract were with a ltd company then it would be different - you could sell the company and the contract would stay with the company so if the contract has value, the company will have value...
key question will be whether you can transfer the contract to a limited company and that will depend on either the legal terms of the current contract (can you assign it), or the goodwill of the contracting companies - i.e. if you said that you had been advised to incorporate, can you transfer the contract, if initially the ltd company is still you then they might consider it...

but the terms of the contract will dictate the options...

Thanks for reply ,it slightly went over my head but,I see your reckoning,the business although not a Ltd company it does not use my name in the title,it was original registered as a company name.

The contracts are in the company name,I see the problem I have is convincing a potential buyer of the potential of these contracts and not look at turnover,and my route to do this without any marketing skills.
Thanks again

 

[Terry - Somerset]

This is not meant in a negative way, but ask yourself - why would anyone pay you? A few possibilities:

• can you influence who gets the contracts once you have retired
• can you provide advice and/or support to whoever gets the contract
• would your customer want to pay for your advice/input when selecting or managing a new supplier
• do you have materials, designs, supplier contacts etc that you could pass on to whoever gets the new contract

These may be some of the reasons why you may be able to "earn" something from your retirement, and help you focus on (a) who you need to be talking to, and (b) the arguments you should use to persuade them of your value.

Otherwise your customers may quite reasonably come to the conclusion they will find a new supplier, thanks for your help over the years, bye-bye!

 

[NickM]

I'd like to do an OU maths degree. That should keep the brain going.

Great idea. I could see myself doing something like that.

 

[akirk]

Thanks for reply ,it slightly went over my head but,I see your reckoning,the business although not a Ltd company it does not use my name in the title,it was original registered as a company name.

The contracts are in the company name,I see the problem I have is convincing a potential buyer of the potential of these contracts and not look at turnover,and my route to do this without any marketing skills.
Thanks again

it is irrelevant if the business is in another name - if you are a sole trader the contract is with you, even though that may be expressed as Joe Bloggs trading as The Square Pineapple - only a LTD company (or PLC, but that is another whole game!) is a legal entity of its own... and there the contract is with the LTD co. and that continues when staff (inc. owner) leave etc.

Conceptually very simple:
- set up LTD company
- have contracts transferred to the LTD company
- sell LTD company which now owns and fulfills the contracts - the LTD co. will have a value based on the contract value

otherwise, contract is with you - you retire, contract stops, no value.

the only issues are a) whether you can transfer the contract to a LTD co at your choice (right of assignment) - or b) whether the other party will redo the contracts... and you need grown up legal advice on that - if the contracts are valuable then it is worth considering as it could lead to a valuable sale for you...

 

[NickM]

Interesting discussion this.

I'm 46 and have been in a (frankly) overpaid but highly pressured and stressful (for me at least) career for nearly 24 years with the same employer. About 6 months ago I decided I simply can't do it anymore and agreed to do one more transition year and will finish in April 22. Nothing since then has made me regret my decision and I'm literally counting the days down.

The financial side of it should be fine (I've saved almost everything and, in comparison with most of my colleagues, have not lived an extravagant lifestyle - one house which is paid for and no expensive divorces/second families and that sort of thing), and I'm not remotely worried about loss of status or about how I will keep myself busy.

The one thing that bothers me a bit is whether I'm setting a bad example/false expectations for my kids by stopping working so early in life. Having said that, there's a fair chance I might get another job if the right opportunity came up, but it would have to be something I really want to do and which, as far as possible, is not stressful. Money should, I hope, not be a factor in what I choose to do which would open up more possibilities.

 

[Sean33]

I think I'm probably good to go at 60. The trigger has been my father who was active till 80 ish then parkinson has struck him down quickly, he's now in a home (end of life) at 86. Retiring at 60, 20 years would be good; 15 or less sounds not very long.

So

I agree - another issue with rental properties is the risk - you only need one dodgy tenant and it goes from being an income to a disproportionately large expense even before you factor in the stress.

No expert here by any means but i would stick to HMOs, especially in and around university campus. Do the work yourself, kitchen, painting etc saves on costs and you will be head and shoulders above most of what's out there to rent for students. You should be pleasantly surprised at 10% plus yields. Price appreciation is very small if at all but the yield more than makes up for that

 

[Blackswanwood]

So

No expert here by any means but i would stick to HMOs, especially in and around university campus. Do the work yourself, kitchen, painting etc saves on costs and you will be head and shoulders above most of what's out there to rent for students. You should be pleasantly surprised at 10% plus yields. Price appreciation is very small if at all but the yield more than makes up for that

I'm not sure ... it depends what you want from your retirement - HMO's come with a whole host of extra (and increasing) regulation aka hassle.

 

[Blackswanwood]

The one thing that bothers me a bit is whether I'm setting a bad example/false expectations for my kids by stopping working so early in life. Having said that, there's a fair chance I might get another job if the right opportunity came up, but it would have to be something I really want to do and which, as far as possible, is not stressful. Money should, I hope, not be a factor in what I choose to do which would open up more possibilities.

I'd say you are setting a good example Nick. You've worked hard to put yourself in the position where you have the choice. Good luck with it!

 

[Spectric]

Yes I want him to be prepared and happy.
We have been great mates for nearly 25 years.
He will carry on in some form or other.
The idea is to bounce ideas around for a few years as to how we do a fair "split". I'm not greedy and more concerned he can carry on and earn a decent income.

How old is your partner, if also getting on then how do you know that he is not thinking along the same lines as yourself?

 

[Spectric]

I'd like to do an OU maths degree. That should keep the brain going.

You may find applied maths more interesting than pure, I have always struggled with numbers unless in the context of a problem but you may have a numerical brain.

 

[doctor Bob]

How old is your partner, if also getting on then how do you know that he is not thinking along the same lines as yourself?

Because he's my friend and we talk

 

[gregmcateer]

Interesting discussion this.

The financial side of it should be fine (I've saved almost everything and, in comparison with most of my colleagues, have not lived an extravagant lifestyle - one house which is paid for and no expensive divorces/second families and that sort of thing), and I'm not remotely worried about loss of status or about how I will keep myself busy.

The one thing that bothers me a bit is whether I'm setting a bad example/false expectations for my kids by stopping working so early in life. Having said that, there's a fair chance I might get another job if the right opportunity came up, but it would have to be something I really want to do and which, as far as possible, is not stressful. Money should, I hope, not be a factor in what I choose to do which would open up more possibilities.

I'm 53, so a little bit 'ahead' of you. 2 kids. One at uni, second finished A levels today. (Currently in 'spoons, so OMG for later today).

I worked for my Dads biz for years, then my brother and I took over when the old man semi retired, then sadly died at 67.
Lesson 1 learned - work hard as I can when young, then aim to ease off and enjoy more time with family.

We continued for a while, but local authority budget constraints meant our previously good, but not flash homecare business was being squeezed, so sold to a larger outfit. Not enough to retire on.
Lesson 2 learned - keep all your financials bang uptodate so you are prepped to sell when time is right!

Used most of the money to build a lovely house, which we sold and made a good profit. Then bought a few small 2 and 3 bed properties as rentals, which we maintain and manage ourselves.

So, short story, long, we have seen loads more of our kids, we haven't been flash and we use every opportunity to explain to them that we have been around coz we worked hard when we were younger and have been careful.

No way of knowing if the kids will take heed, but I've given them what I feel is the best example of a balanced life, with a work ethic. Both have and do work at weekends and holidays and don't expect any handouts, so finger crossed.

 

[Spectric]

The one thing that bothers me a bit is whether I'm setting a bad example/false expectations for my kids by stopping working so early in life.

It could be seen as a good example of what can be achieved if you work hard when young, settle for easy job and work all your life or push hard and then the reward is a good retirement period which is all yours, the example they will see.

 

[dzj]

I remember reading The Lotus Eater, by W.S. Maugham.
One of the most frightening stories I ever read.

 

[chris watford]

Marry a partner that is younger than yourself, with good pension prospects, sorted

 

[simoncmason]

At 47 I'm semi-retired, working between 2 and 3 days a week, with about 8 weeks completely off a year. The hardest part of this is actually turning down a lot of work I am offered.

I intend to remain like this until I am either dead or unable to work at all, but moving gradually towards more full weeks off a year and less days in a working week. Also earning from different sources - making furniture.

I recognise that I am very lucky in having no mortgage or debts and a nice home. We also have enough land to be somewhat self-sufficient in both food and wood for heating which keeps bills low. I work freelance as a software engineer, so I am well rewarded for my work and work from home in a totally flexible way.

From older friends and colleagues I have spoken to, those who have scaled back but continued to work seem to have been happier than those who retired young. Money is generally less of an issue and it is good to keep up with the world of work and have some level of intelectual challenge.

I realise this isn't possible for a lot of people, those in physical jobs or with inflexible employers - but I really do think it is a massive loss to everyone that people are in general expected to work full time until 65 or thereabouts, and then completely stop. The sudden loss of all that experience and knowledge, plus the financial reality of going from paid work to even a good pension seems like a real societal problem - and one with a very easy solution: give people more choice to scale down over time.

What ever you choose to do I hope it works out for you - too many people put too many hours into work and not enough hours into living.

 

[houtslager]

A very interesting topic this one, I retired from my first real job after 17 years - HM Army, left and learned a new trade of Antique restoration and retired from that trade when the arse fell out of antique trade and switched over to custom furniture and interiors. Like some of the old gaffers here I never thought too much over retiurement as being a soldier life span was in my day pretty low , then I thought I would be lucky to see 30, and here I am knocking on 60's door, after being shot at,near bomb explosions, two major vehicle crashes, falling off a ladder [3m high] slipping on a roof access gangway, where the site foreman removed anti slip = me going arse over tit and falling 7m through the ladder access. How I did not go head first into the ladder rungs is beyond me. Survived all above, mum died 2 years now, dad very ill, so I am back in the UK to help him " retire " as at 88 his business needs culling for him to manage, not short of pennies so he has it sorted except his health issues.
As for me, I got rid off my home, paid all debts off, present home debt free, no flashy vehicles I use a clapped out Ford Tranny, only fancy stuff I own are my Festool tools, and some fancy hand tools. Have no kids, so when I pop off it all goes to distant relatives in Ireland or in the pot for my wake.
So, work / life balance nearly sorted out how I want, just looking for a building project to restore somewhere in the Bourgogne area, found a cracking diused small " county " hospital for a €100K but not just yet

 

[SammyQ]

Bob, I put it to you, a lot of this talk of spreadsheets, rental properties, annuities is superfluous. None of that considers or puts a weighting on health and wellbeing.

I retired at mid-62, having put in my 40 years, plus 4 at uni (combined degree). What immediately preceded it - in terms of my wife's health, and lately mine - could not be converted to monetary value, was uninfluenced by interest rates, yet severely and permanently modified my lifestyle and wellbeing. And it came as a total surprise.

Three years later, I am now living 200 miles away from life-long friends, but nearer my children, in a paid-for house with sustainable overheads and a wee pot of leprechaun gold to fund my lignin addiction. My lifestyle has had to change, but I am still active and I derive considerable satisfaction from what I can do.

My point is, at 60, I had no idea what turmoil and distress disease was to wrought in my life, just a few short months later. So, take it while you can, Bob. Life, and particularly health, are unpredictable, utterly impervious to your wishes or plans and - significantly often - inexorable in their progression to their conclusion. You might deflect them temporarily, but you won't stop them.

Enjoy it while you can.

Sam

 

[Spectric]

It would have been much easier if we were born with an expiry date on our body, if you know the deadline then very easy to plan and spread the finance.