Ready to RE, now they want me to go part time!

[nwsteve]

As alluded to by East West Gal--Independent contractor status is the way to go. Write an engagement agreement and set an hourly rate the covers your current wage rate plus an additional 50% to cover the cost of being self employed including healthcare. Generally speaking "corporate burden" is 30-35% of wages paid. In addition to being paid for ALL your time, you will also have the ability to set up a 401K self employed plan and shelter up to 25% of your earnings plus matching $ from your employer (self but this may require operating as a LLC). Make the duration of the agreement a set number (6?) months which auto renew subject to written mutual agreement of both parties. IMHO, self employment gives you far more options and better control of being paid for your time.
Nwsteve

 

[CRLLS]

Is there daily work to be done, or do they want you around to tap into you brain occasionally? I have a deal where I am self-employed. There is a guaranteed 30 hr per month, prepaid on a monthly basis. Expenses and anything over 30 hrs in that month is billed. Seldom do I even meet 30 hrs. It is up to them to assign me things to do, not me to find them.




"50% pay for 33% w**k?" as an employee might be acceptable, (maybe) As a contract worker, it is not enough to cover your expenses. Keep in mind how that added $ might effect any ACA subsidies.

 

[Taxman59]

Update: Over the weekend, I talked with friends who have been (or are in the midst) of this. The general consensus is the same as the advice here . . . split between retire and don't look back or take the part time but keep a tight control on the hours. My DW is coming down on the side of walk away and let's get our new life started.
I spoke with my boss, and she has privately met with some of the other people who will be in on any decision from the company's view, and they are leaning on having a set day (or days) per week with both sides being flexible so I will be available for a big project, but still can take a week off if I need to. I replied that the exception would be a regular day in the office and I would be available by phone. If there is a big project, I can come in for a week or so, otherwise, phone calls and email would be expected.
As to the pay rate, I think a rate at 2X my current salary as a contract hire with a set # of hours (about 600 per year). The total pay would be set with the checks due monthly (regardless of the hours worked in a given month, though over the year, the hours would be capped).
Overall, I think that the details will torpedo any deal for longer than a few months, too many people here are control freaks and would see my flexibility as undermining their authority. I expect that they will come back on Thursday with more details of what they want.

 

[youbet]

It seems that you very, very much want to continue working, at least on a part time basis. That being the case, you should negotiate the best deal you can and continue to pull the plow based on the final terms of your contract.


I'd retire. But in your situation, I didn't want to keep working.


It's a personal thing driven by individual desires on how to spend life's precious hours. Do what's right for you.

 

[mystang52]

I gave my notice and my company asked me to stay on in a part-time capacity. This wasn't a total surprise as I had posted about this [at-the-time] possibility here.
Anyway, I ended up agreeing to 2 days/week on Tuesdays and Fridays, w*rking from home. It's worked out great for me.
If you could finagle a similar tele-commuting position, it could be worth consideration.

 

[Taxman59]

You bet:
I do want to do some w**k, but only on my terms, and not necessarily with my current employer. I want there to be goodwill when I leave, but I do plan on leaving (some want me to retire only after they do!). I figure that if I am clear of the acceptable terms, if they won't meet them, it is on them. If they do, then I "win" and get to do only those parts of my job that I like, and get paid some of what I was underpaid for the past 3+ years.

My wife is now on the side of "screw them, quit now! Over the weekend, she was saying I would be bored so take the part time offer! I am sitting with the fence firmly up my b*tt, I can go either way, but only on my terms!


Sent from my iPad using Early Retirement Forum

 

[braumeister]

The key for me would be to define exactly what you would be required to do.
Could you do that in 2 days a week? Really?
If so, it's an idea worth exploring.
If not, think about it.
If you're not sure, get more clarity.

 

[EastWest Gal]

You bet:
I do want to do some w**k, but only on my terms, and not necessarily with my current employer. I want there to be goodwill when I leave, but I do plan on leaving (some want me to retire only after they do!). I figure that if I am clear of the acceptable terms, if they won't meet them, it is on them. If they do, then I "win" and get to do only those parts of my job that I like, and get paid some of what I was underpaid for the past 3+ years.

My wife is now on the side of "screw them, quit now! Over the weekend, she was saying I would be bored so take the part time offer! I am sitting with the fence firmly up my b*tt, I can go either way, but only on my terms!


Sent from my iPad using Early Retirement Forum

It sounds like both of you are on the fence. At least you are both on the same page. It seems like it would be worth a try, anyway. If you try it and don't like it, you call it quits and retire. If you like it, the extra cash will be handy. I got offered double my current rate, so I'm taking it. I probably will be needed only 2 days per month, which will be perfect.

 

[youbet]

You bet:
I do want to do some w**k, but only on my terms, and not necessarily with my current employer. I want there to be goodwill when I leave, but I do plan on leaving (some want me to retire only after they do!). I figure that if I am clear of the acceptable terms, if they won't meet them, it is on them. If they do, then I "win" and get to do only those parts of my job that I like, and get paid some of what I was underpaid for the past 3+ years.

My wife is now on the side of "screw them, quit now! Over the weekend, she was saying I would be bored so take the part time offer! I am sitting with the fence firmly up my b*tt, I can go either way, but only on my terms!


Sent from my iPad using Early Retirement Forum

That clarifies your original question a bit, at least for me. Given that you gave your employer a retirement date but you'd actually rather keep working part time under terms you consider favorable, go for it! I can't give you advise about that as when I reached FIRE, I was done and ready to start an entirely new direction in life. Part time didn't appeal to me. I have several friends, however, who have continued part time, or started new part time endeavors, and that course of action seems to be working out very well for them.

I will say that the safe thing for you to do would be to negotiate the best deal you can and try it for a few months. If you're disappointed with it then, you can always quit.

 

[Sunset]

You could go with a with pay by the hour, so if the work bleeds over the "allotted time" you just make more $$$.
That way if they start emailing you at home (and it takes more than 10 min) you charge for it.
I do some consulting for favorite old client, I handle the free time issue by bunching the time into blocks, it has allowed us to take a last minute trip deal which was fun.
I'll answer email for free if its a quick 5 min thing, but if it becomes back and forth to nail down issues, or log in somewhere to check stuff out, then I bill the time for that.
Otherwise you end up working for free.

 

[pb4uski]

......I spoke with my boss, and she has privately met with some of the other people who will be in on any decision from the company's view, and they are leaning on having a set day (or days) per week with both sides being flexible so I will be available for a big project, but still can take a week off if I need to. I replied that the exception would be a regular day in the office and I would be available by phone. If there is a big project, I can come in for a week or so, otherwise, phone calls and email would be expected.
As to the pay rate, I think a rate at 2X my current salary as a contract hire with a set # of hours (about 600 per year). The total pay would be set with the checks due monthly (regardless of the hours worked in a given month, though over the year, the hours would be capped).
Overall, I think that the details will torpedo any deal for longer than a few months, too many people here are control freaks and would see my flexibility as undermining their authority. I expect that they will come back on Thursday with more details of what they want.

FWIW, my arrangement was a 50% of pay for 50% of FTE hours (but I was still eligible for all FTE benefit programs but at x%). So if at my level an FTE was expected to have 1400 chargeable hours a year then I was expected to provide 700 chargeable hours a year. If my actual chargeable hours was significantly different from that then we would make a mid-course adjustment of my pay so the $ lined up reasonably with the hours by the end of the year.

I monitored my hours and periodically reported to my boss as to how things looked on a YTD basis. In reality all I needed to do was look at my realization % was ~70%. I was generally reasonably within range of the target so we never had to make any adjustments other than when a special client project came up and I increased my time for about 6 months and then mid-way through the project we adjusted the % of pay to catch up with the hours I was putting in.

It worked out well for us, but my management was quite flexible - about as far from control freaks as you could get.