Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Strange Day- Gets me Thinking
Old 05-31-2008, 05:19 AM   #1
Recycles dryer sheets
Join Date: Feb 2006
Posts: 221
Strange Day- Gets me Thinking

Strange day this week at w*rk. Came in after taking an extra long weekend to learn my co-worker got severely burned on arm/hand in lab reaction accident (we are synthesis chemists) and was in the hospital. It's one of those things that everyone thinks: it could have been me. And for me, it makes me think - is it time to retire?

Here's my situation that makes me hesitate:

I invested in a start-up company 14 years ago. It has grown from 4 employees to >250 today. Currently, I own <5% of this closely held company which I learned later the day of the co-workers accident was close to being sold at the end of last year, my part would have been ~$3 million before taxes (coincidence?). Current company value (stock price set by company for selling within current investors) would get me about $1.5 million before taxes if it could be sold now. I probably could not sell more than 15% anytime soon. Founder, CEO and largest shareholder has told me his plan is to sell company by 2011, either to outside company or to employees. Company is growing (sells up over last few years 10-20%/year), just doubled it's manufacturing ability and has other plans to continue positive growth increases.

In addition to above, we currently have $300K in taxable accounts and $450K in retirement accounts. Firecalc shows >95% success using after-tax current company value coming in 2011. We could easily live in present location with current expenses plus health costs (est $20K/year) plus taxes until 2012 without tapping into retirement, if something delayed company being sold. But this leaves me short of my dream to move closer to the coast and getting a sailboat, which I could easily do if my part of company value was closer to $3 million and I had it now.

After writing this, seems obvious, but I'm still really hesitant - fear of the unknown and desire of fulfilling a dream. Any thoughts?


F-One is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-31-2008, 05:37 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
Join Date: Jan 2008
Location: Chicagoland
Posts: 10,663
I know what I'd do, but that shouldn't influence your decision...

No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 05-31-2008, 10:12 AM   #3
Thinks s/he gets paid by the post
ls99's Avatar
Join Date: May 2008
Posts: 4,454
Having bailed bailed out with far less, to me the choice is to go for ER.
There must be moderation in everything, including moderation.
ls99 is offline   Reply With Quote
Old 05-31-2008, 10:48 AM   #4
Thinks s/he gets paid by the post
RunningBum's Avatar
Join Date: Jun 2007
Posts: 3,723
I'd wait a few more days or weeks and take the emotion of the recent accident out of the equation. Sounds like that was pretty traumatic, and I wouldn't make a decision I didn't have to right after that.

So am I understanding correctly that you could keep your ownership in the company and hold out for the ~3M before taxes even if you left now? If you can't, I'd wait it out. Otherwise, you sound like a go.
RunningBum is offline   Reply With Quote
Old 05-31-2008, 11:43 AM   #5
Moderator Emeritus
CuppaJoe's Avatar
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,869
I've had the pleasure of meeting several people (Silicon Valley) who are in similar positions, and have heard about many more though j*b and personal contacts (the "one-degree of separation" thing). They seem to really enjoy w*rking in a series of lucrative ventures. I couldn't tell you which way to go, but congrats on having the option.

I would ask myself, "when was the last time I went sailing?" It's a lovely dilemma.
CuppaJoe is offline   Reply With Quote
Old 05-31-2008, 12:31 PM   #6
Recycles dryer sheets
Join Date: Jul 2005
Posts: 423
Ahhh, the good ol' fashioned Golden Handcuffs dilemma!

Would you be able to keep your equity if you left? That is what would make or break the decision for me.
Olav23 is offline   Reply With Quote
Old 05-31-2008, 12:53 PM   #7
Thinks s/he gets paid by the post
Coach's Avatar
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,128
F-One, with so much of your wealth tied up in one stock that you have very limited ability to sell, I would be selling as much as I could.

Coach is offline   Reply With Quote
Old 05-31-2008, 12:59 PM   #8
Recycles dryer sheets
Join Date: Feb 2006
Posts: 221
Sorry for the misunderstanding, I don't work for the start-up company. It is an outside investment not related to my current j*b. So yes I still have the equity in the company no matter what I do concerning work. The issue with this investment is it is not easily sold, I won't be able to get majority of money out until it is sold or goes completely public, as it is a closely held corporation.
F-One is offline   Reply With Quote
Old 06-03-2008, 05:50 AM   #9
Confused about dryer sheets
Join Date: Jun 2008
Posts: 9
One thing you may be able to do while you decide is play venture capatilist and do everything you can to make sure the start up sells for top dollar.

cvoz is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
More Strange In Law Stuff 2B Other topics 20 07-17-2006 03:38 AM
Life Is Strange Danny Other topics 43 04-13-2006 12:09 PM
Strange situation... dory36 Forum Admin 5 05-13-2005 03:11 PM


All times are GMT -6. The time now is 09:38 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.