1 year into retirement and going to try a part time consulting gig

[jabbahop]

I haven't yet found a retirement activity that tickles my "analytical/investigative side that work sometimes provided so I signed up to do a part time consulting gig for old company.

I estimated that it is maybe 100 hours over the next three months so I will still have free time.

Cons
- I no longer have complete control over my calendar
- some percentage of the time isn't the stuff I enjoy (spent an hour on my client's account payable system already)
- getting wrapped back into the company politics a bit
- weather will start getting nice here so will cut into some potential biking time

Pros
- the project should be interesting
- I know and really like working with a couple of the people on the team
- charging 2x my old hourly rate
- will get to fly back to California a couple of times first class on their dime
- the extra cash will pay for some recent unexpected expenses


It is really an experiment to see if I enjoy it overall.



Sent from my iPad using Tapatalk

 

[Sarah in SC]

Sounds like this gig is a great fit for where you are right now.

Hope it all goes well and the good parts outweigh the (slight) negatives you mentioned.

 

[traineeinvestor]

I continued to do some very part time consulting after I retired and found that the pros outweighed the cons - it keeps me mentally engaged with stuff I enjoy and doesn't interfere with anything else I want to do.

As an aside, I found that being a part timer and a consultant (rather than a partner) meant that I could more or less ignore whatever politicking goes around. Knowing I can say F%^& It anytime makes a difference.

 

[Bestwifeever]

They would have had me at "first class on their dime."

Why not try it while your skills and contacts are fresh? Sounds like you will enjoy the gig.

 

[Dash man]

Sounds too much like work to me!


Sent from my iPhone using Early Retirement Forum

 

[rodi]

It's only for 3 months and there are a lot of positives. If you don't like it - you can stop after the 3 month mark.

 

[Dreamer]

Three months is such a short time frame. It should fly by. Extra cash for unexpected expenses should give you some peace of mind. Spending time with people that you enjoy working with, will be nice. Sounds like a good experiment.

 

[Teacher Terry]

7 months after I retired I got bored so do some p.t. consulting in my field and teach an online college class. I work about 10-15/hours/week and it is perfect. When we go on trips I can teach my class anywhere I have a computer. I have been doing this for 4 years and it is perfect.

 

[Walt34]

It is really an experiment to see if I enjoy it overall.

Nothing wrong with this at all. The key is you're only committed to three months and if it really goes sour you can walk when you want. I ended up going back to work but it was an easy gig, paid well, and had a short commute of three miles. Eventually things did go sour and I had the freedom to walk. That made all the difference in the world for me.

 

[pullmyfinger]

If I had an opportunity like that I would do it as well. Nothing wrong with easy cash.

 

[gerntz]

You should try duplicate bridge. It can consume you. And you meet a lot of people.

 

[papadad111]

Agree. Sounds healthy .. Mentally and all.

Can I ask your age ?

Approx is ok. Just curious ...

 

[Sunset]

I do this, worked about 7 weeks last year, as independent contractor ( 1099 ).

You should look into Vanguard solo-401K if you don't already know about it, as you can contribute to an IRA or ROTH in the 401K (plus of course an outside regular ROTH). Max contributions are approx $54,000

You would need to get this set up before the end of the year, but contributions could be as late as April 2017 for 2016 tax year.

 

[jabbahop]

Thanks to everyone for their support and input. Was strange doing some work on the project on a Sunday night thinking about what I need to get done this week.

Papadad - I am 56.

Sunset - that is a really good suggest. We could be right up against our ACA cliff so having an ability to make some of that income go away could be really valuable.


Sent from my iPad using Tapatalk

 

[simple girl]

7 months after I retired I got bored so do some p.t. consulting in my field and teach an online college class. I work about 10-15/hours/week and it is perfect. When we go on trips I can teach my class anywhere I have a computer. I have been doing this for 4 years and it is perfect.

Teaching an online class is what I am looking to do, for exactly the same reasons - controlled investment of time, can work from anywhere (aka while we travel), keep my mind engaged, and bring in some extra "cushion" money.

I currently teach at a community college, so the transition should be fairly smooth. Just looking for the right opportunity.

Glad to hear someone else following this path really enjoys it!

 

[Corporateburnout]

Was strange doing some work on the project on a Sunday night thinking about what I need to get done this week.

That's one of the reasons why I wouldn't consider it. It's been great not to think or worry about work. I value my freedom and peace of mind too much to be thinking about work again on Sunday night.

But if it makes you happy best of luck to you.

 

[38Chevy454]

I think one of the good things about retirement is you can work because you want to. It seems this 3 month part-time project is a good fit for you, and of course the additional money never hurts. If you find it just is too much like work and you are not liking it, as pointed out it will be over in three months.

 

[TallTim]

+1 to giving this approach a try.

I was asked by former employer to take on a 3-5 month 10 hour per week project (that I was working on before and which has stalled for several reasons) ... so I sent them a list of a few things that I regarded as essential:

(1) defined term < 6 months
(2) no going to office, ever
(3) any travel would be business/first
(4) hourly rate of about 2x what I would have made in salary terms, but about 50% of what they would pay a law firm to do for them ....

And to my surprise, they agreed.

It's going Ok so far (4 months in) and will likely roll into another 90 days or so. It's been pretty low stress and less hours that originally envisioned. But I admit the extra cash has come in handy.

 

[Balance]

Jabbahop,

I think it's a great idea, especially early in the transition. If you decided to try and do it later in life you may find it tough to get back in the saddle even if it's part-time.

My transition into retirement has been a little rocky, as well. Not financially but mentally and socially. It probably would have been easier if the kids were out of the house but with one in first year of college and the other child still home who is extremely active in school, extracurricular activities and friends; DW and I find our social network is tied to them and their friends parents all of which are still working full time. So, DW and I decided to try part-time consulting in this interim period before full time retirement. We have found it to be rewarding on a number of fronts 1) Both DW and I like the mental and social aspects of the part-time gig. Like you, we are working with people we enjoy spending time with and they are respectful of our involvement. We have flexible arrangements and the work does not interfere with our family life, like full time work. No 24/7 commitments 2) This year are income will exceed our annual expenses so we will have no withdrawal from our investments. In fact, If things go well with a new proposal we might actually put 20K into savings on top of investment growth. 3) If possible, we want to leave a legacy for our kids, so in these transition years we can pad our nest egg. 4) Lastly, and maybe most importantly, I believe it's imperative for us in this transition to be role models for our children by being productive in society, but in control of our life. They can understand how reaching FI earlier than later can enhance the BALANCE in one's life.

I hope it works for you. Probably, the best part is you can always just say, sorry this is not working out for me and exit graciously stage right.

 

[W2R]

Sounds too much like work to me!

+1

But then, whatever floats your boat. Go right ahead, and I'll take care of all the "retired person stuff" (sleeping late, dressing like a bum, happily watching grass grow, only hanging out with people I like, doing whatever I please whenever I want to do it, etc) until you get tired of it.

Meanwhile be sure to fully fund your tax advantaged accounts, since that just might be the only advantage to working AFAIK. And thank you for your regular contributions to keep Social Security afloat!

OK, I'm joking. Honestly I am glad you have found something that brings you satisfaction. It's not for me, but then if we were all the same, the world would be a dull, boring place.

 

[rrppve]

The 3 month duration makes it a good trial.
I've found that even with high hourly rates, the self employment taxes just don't make PT consulting that attractive. The additional $ just don't move the needle and I look to incur additional discretionary business expenses to minimize the tax hit. Sure it covers the health insurance, a new computer, phones etc but not sure it is really worth the aggravation of having a client/customer and time constraints.


Sent from my iPad using Early Retirement Forum

 

[SumDay]

DH retired from Megacorp in 2008, and in 2009 some suppliers of Megacorp approached him to be their representative. He works about 3-4 hours a day, and it gets him in the building daily to see all the folks he used to work with. It keeps him in the loop for happy hours and Christmas parties. On the downside, they obviously placed a tracking chip in him, because when we leave town for a vacation, all hell breaks loose. Long weekends seem to be all we can squeeze in, but we're OK with it. The $$ is good, and we use it for extras on the house so it's just how we want it when we do retire. We both plan to hang it up in June 2018 and that will be here before we know it.

Sounds like a good gig for you, and 3 months ain't nuthin... Enjoy the $$$$!!!

 

[Fedup]

I do this, worked about 7 weeks last year, as independent contractor ( 1099 ).

You should look into Vanguard solo-401K if you don't already know about it, as you can contribute to an IRA or ROTH in the 401K (plus of course an outside regular ROTH). Max contributions are approx $54,000

You would need to get this set up before the end of the year, but contributions could be as late as April 2017 for 2016 tax year.

I was looking at this last night, max contribution for over 50 crowd is $59k. My husband might have consulting work. Who knows how long but the pay is good. If he works full time he could be making half a million. But I think realistically it might be less than $100k. People called him for this work, as in he is not seeking it, but he's glad to help because it keeps his brain active and no commute as the job he retired from.
The best part is they said they work with us with our travel, unless he has to appear in court.

I was wondering if it's a good idea to form an S-Corp and whether he should hire me to do paperwork such as booking travel, do taxes, etc.. so I can contribute to solo-401k as well.


Sent from my iPad using Early Retirement Forum

 

[Loving Life]

I retired at age 55, I took a year and did some travel and other stuff - I got a request to do a 3 month gig in Dubai. (I worked international most of my career) that led to a 2 year contract, then another 2 years SE Asia, and now my 3rd, 2 year contact. After the initial shock of going back to work, it has turned into a great rewarding experience, great holidays, good locations and great staff and NO POLITICS since you are there just to train there staff - I am now getting past the age of getting work VISA's so my run is coming to the end - my advise do it, there is No downside

 

[jabbahop]

I do this, worked about 7 weeks last year, as independent contractor ( 1099 ).

You should look into Vanguard solo-401K if you don't already know about it, as you can contribute to an IRA or ROTH in the 401K (plus of course an outside regular ROTH). Max contributions are approx $54,000

You would need to get this set up before the end of the year, but contributions could be as late as April 2017 for 2016 tax year.

I am curious. Since we are currently in a lower tax bracket (15%) than we will be when RMD's hit, should we setup a solo ROTH 401K vs a traditional? With FICA, RMDs, ACA subsidies, tax brackets - things seem a lot more complex than when I was working.