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So, would you?
Old 03-03-2019, 05:28 PM   #1
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So, would you?

I’ve posted here before with all of my situation particulars.

I Have my July 5th retirement date set, but have only told my staff, not my Board of Directors whom I work for. I’m good to go July 5th. I have enough.

But.

My CFO walked into my office Friday and told me (and I knew this (mostly)) that by leaving July 5th, versus December 31st - wait for it...... that I’m leaving $300,000 gross on the table (salary, bonus and Top Hat).

But when does it end? Wait til Dec 31, why not wait til next July when my pension goes up another 2%.

So. I can stay six more months for $300k (which is a lot) but miss the summer mountain home (it’s hot in Scottsdale) again. When I’m dying - will the $ matter?

WW you do?

Sigh.
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Old 03-03-2019, 05:31 PM   #2
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WW you do?
Two things:

1. Come up with a more descriptive title for this thread.
2. Leave when I wanted to, which is something no one here can tell you.

BTW, a great problem to have.
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Old 03-03-2019, 05:34 PM   #3
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I take it that you have planned accordingly to retire happily on July 5th ? There will always be $$ left on the table, and bosses that don't want to start the search process of replacing you. This "dangling carrot" mentality is prevalent amoung most companies, in trying to squeeze the last usable drop out of you before they have to find a new hamster.
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Old 03-03-2019, 05:43 PM   #4
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Anyone who retires is always leaving money on the table. Ask your CFO if he can credit you the time back for staying.
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Old 03-03-2019, 05:43 PM   #5
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It would depend on the after-tax impact of that $300K. If it would enable me to do desirable things in retirement that I otherwise couldn't afford that would be different than if it just increased the size of my estate.

Your CFO is quite a nice guy, BTW. $300K is probably more than your actual value to the company for the 6 months. The difference is an outright gift. I don't agree with @ckelly78z's attitude on it at all.
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Yeah, Iím fine.
Old 03-03-2019, 05:44 PM   #6
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Yeah, Iím fine.

Quote:
Originally Posted by ckelly78z View Post
I take it that you have planned accordingly to retire happily on July 5th ? There will always be $$ left on the table, and bosses that don't want to start the search process of replacing you. This "dangling carrot" mentality is prevalent amoung most companies, in trying to squeeze the last usable drop out of you before they have to find a new hamster.

I know this post sounds braggy. But for many many years I was not where I am today. Im at the top of my “pile” right now. But I have enough and will be happy without this. But 6 months VS. $300k. It got my attention, as I remember working my behind off for $50k a year.

I guess it’s true. When it’s “your” decision, you always leave a bunch of money on the table.

I spent 37 years getting here to the place I am. Hard to voluntarily walk.
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Yep
Old 03-03-2019, 05:47 PM   #7
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Yep

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Originally Posted by OldShooter View Post
It would depend on the after-tax impact of that $300K. If it would enable me to do desirable things in retirement that I otherwise couldn't afford that would be different than if it just increased the size of my estate.

Your CFO is quite a nice guy, BTW. $300K is probably more than your actual value to the company for the 6 months. The difference is an outright gift. I don't agree with @ckelly78z's attitude on it at all.

They set up the Top Hat to keep me around. Iím not worth $300k for 6 months.

Donít tell my Board. 😳
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Old 03-03-2019, 05:48 PM   #8
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I guess itís true. When itís ďyourĒ decision, you always leave a bunch of money on the table.

I spent 37 years getting here to the place I am. Hard to voluntarily walk.
X number of years from now when you are no longer able to do the things you wish to do - like spend time at your summer mountain home - will you wish you'd spent one more summer there or made an additional $300K before you retired?
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Old 03-03-2019, 05:49 PM   #9
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Well if after tax is let's say 200k, then the 4% WR guidance gives you an extra 8k spending per year. Not a tremendous amount potentially.
OTOH, if you wish to take a portion of the 200k for one shot deal spending which you wouldn't do or be willing to do under normal circumstances, then it might be worth it.
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Old 03-03-2019, 05:54 PM   #10
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I make about $300k a year. If I add that to what I wouldn’t have to take out of my portfolio which I plan to be $120k, that’s $420k gross. That’s not making me stay another year. I have more important things to do...live the rest of my life.
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Old 03-03-2019, 05:55 PM   #11
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OP, more bad news on the money front. It will be more than $300k. If you retire midyear, you need to withdraw from savings to fund spending. Working six more months will leave your savings intact until the end of the year. But as you point out, you will always have more money by working longer. At some point we either have to say we have enough and bail or accept that we want more and keep working.
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Old 03-03-2019, 05:55 PM   #12
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You said you had enough. What more do you need to know?
DW always had carrots dangling in front of her. She worked out a compromise to work an additional three months beyond her three month notice, but get paid for an additional five months beyond. She gave notice in the beginning of 2016 to retire that March. They wanted her to stay until her replacement could be found and have an overlapping transition. She ended up working through June, but was paid through November. That included bonus, a restricted stock grant and options grant. We also had health insurance covered through November that year. Worked out nicely.
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Old 03-03-2019, 06:30 PM   #13
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I would.
But the post tax income would be a much higher percent of my net worth than it is of yours.
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Old 03-03-2019, 06:34 PM   #14
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Not so much of would I, but instead I did but not a large as your walkaway. No matter when you'll always walk away from something. I looked and found that I couldn't buy 6 months of FIRE at any price. Seems you have kinda made up your mind though and looking for people to support it.
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Old 03-03-2019, 06:45 PM   #15
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Not enough info - how much is that post-tax 300 going to change or impact your savings, and your spending plan?

It actually makes me think you should have just pulled the plug in january (or, quit tomorrow), vs. waiting till July. If your comp is loaded at the back end of the year, then typically that's when you'd walk.

Mine was front loaded in 1Q every year: Bonus was february, company annual profit share, HSA load, and 401k match always required employment on the last day of a quarter. So my plan was always to leave on 4/1 or thereabouts.

In your case, why July? Why not March? Why didn't you just go after last December's bonus? If you didn't have quite enough then - they stay thru December.
If you already had enough and have done OMY before (which it sounds like might be the case), then stick to your plan.
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Old 03-03-2019, 06:49 PM   #16
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Not enough info - how much is that post-tax 300 going to change or impact your savings, and your spending plan?

It actually makes me think you should have just pulled the plug in january (or, quit tomorrow), vs. waiting till July. If your comp is loaded at the back end of the year, then typically that's when you'd walk.

Mine was front loaded in 1Q every year: Bonus was february, company annual profit share, HSA load, and 401k match always required employment on the last day of a quarter. So my plan was always to leave on 4/1 or thereabouts.

In your case, why July? Why not March? Why didn't you just go after last December's bonus? If you didn't have quite enough then - they stay thru December.
If you already had enough and have done OMY before (which it sounds like might be the case), then stick to your plan.
+1

I left about a year early, my Fidelity guy said about the same thing. How much difference does it make? When will you be able to stop chasing carrots?
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Old 03-03-2019, 07:16 PM   #17
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It is a lot easier to add time to the front end of your retirement than to the back end and they are much better years.
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Old 03-03-2019, 07:28 PM   #18
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Originally Posted by Canoesmith View Post
Iíve posted here before with all of my situation particulars.

I Have my July 5th retirement date set, but have only told my staff, not my Board of Directors whom I work for. Iím good to go July 5th. I have enough.

But.

My CFO walked into my office Friday and told me (and I knew this (mostly)) that by leaving July 5th, versus December 31st - wait for it...... that Iím leaving $300,000 gross on the table (salary, bonus and Top Hat).

But when does it end? Wait til Dec 31, why not wait til next July when my pension goes up another 2%.

So. I can stay six more months for $300k (which is a lot) but miss the summer mountain home (itís hot in Scottsdale) again. When Iím dying - will the $ matter?

WW you do?

Sigh.
I'm probably approaching this situation from a different position than many people here, in that I don't make a lot of money and never have (I'm a teacher.) $300,000 would definitely be worth six months for me, especially if I liked my job (or at least the job wasn't so stressful that it was killing me health-wise.) I'd find a way to make the extra six month work time as palatable as I could, and stick it out, for that kind of money.
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Old 03-03-2019, 08:02 PM   #19
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IMO, 300K is a great inducement to stay another 6 months. Well, I never earned anywhere near that much, I delayed my retirement until mid January to make sure my profit sharing of 7% of my salary was deposited into my 401K
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Old 03-03-2019, 08:20 PM   #20
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....December 31st - wait for it...... that Iím leaving $300,000 gross on the table (salary, bonus and Top Hat).
....
So. I can stay six more months for $300k (which is a lot) but miss the summer mountain home (itís hot in Scottsdale) again. When Iím dying - will the $ matter?

WW you do? Sigh.
I'm not sure I would stay, if you already made plans and comfortable with your numbers. Is the $300k every 6 months or once a year each Dec 31? It's just OMY issues, always money on the table, right? Always more if you stay!

Any chance of taking an extended 2 - 3 week vacation during the summer to enjoy the mountain home then work remote every other week? Depending on the flexibility, would determine my choice.

Could the $300k be used for kids or parents one time generous trip or gift? Earmark the $$ for kid's down payment on a home, grand kids 529 college fund, etc.? I'm starting to think about how I can step up a generous gift for my kids after reaching FI but working so thinking along the lines of what I listed.
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