Just realized that I never really introduced myself

[Taxman59]

+1

I'm sure you have drawers to clean out, papers to shred or pass along, etc. When you need a pick-me-up, put some of your favorite music on your iPod or phone, stick on your headphones, and take care of some of that tedious stuff while your mind is elsewhere!

I have cleaned out several drawers, but the one I inherited about 22 years ago is still to be cleaned. I have often though that I should get only my stuff out of it and leave the "history" for the next person!!!

I do listen to Pandora, and no longer listen to Jazz, but the Rolling Stones station with the desktop speakers!

 

[Taxman59]

Less than 10 days of w*rk remain!! We have interviewed candidates and management has decided that in order to hire one (the cheaper one!), they need me to commit to being available for special projects. I agreed that it would be possible, but I would not commit to a day per week, but rather an on-call arrangement. I also would block out times when I was out of town or otherwise not available for calls or emails. I am a bit concerned that the president said he couldn't envision too many times when a need was immediate where I would need to drop everything and come to the office! The first time it happens, I will readjust the arrangement to significantly increase the $$$.

I do have one question for this community: I have figured out that they are paying me $XX per hour (reflecting salary, benefits, holiday and vacation time). I know that when they were doing some proposals, they were using 150% of $XX. What rate are you using for any contract w*rk you are doing for former employer (not the $$, but how did you come up with it)?

BTW, Pandora is playing "Won't Get Fooled Again" as I type this!!

 

[RockyMtn]

My consulting rate is about 200% of my former salary when broken down to hourly rate. This does two things...first it weeds out the clients who I don't really want to work for in the first place (underfunded, just want my rolodex, etc). Second, it makes people think long and hard before hiring me (don't really want to work all that much anyways).

I have worked for less but only if there is a guaranteed number of hours involved or some sort of retainer.

 

[Totoro]

a rough rule of thumb for flex-work can be (total employer cost / 1780 hours ) x 2.

1780 are the typical hours a full time employee actually works per year (up to 2000). x2 is the "flexibility premium". An equivalent rule can be (employer cost / 1000).

Total employer cost includes everything (company car costs if you had one, health insurance cost, 401k matching, ..) except office costs (office space, your computer, ..).

That said, since it's your former employer, you can go anywhere from x1.5 up to x3 instead of 2x, depending on how much you actually want to help

Bear in mind that you are per hour much more valuable than other outside help since you already know the place.

 

[TallTim]

@ Taxman ... congratulations - this is clearly a first world problem to have

That said, good advice from RockyMtn and Totoro ... there are many ways to go about this calculation.

One other ALT that I've seen is to simply do a very rough calc of what your time is worth (total fixed costs/total hours you want to work = billing rate). For example, if your total fixed are $50k and you want to work 10 hours a week for 20 weeks, then the implied rate si 50,000/(10x20) - 50,0000/200 = $250 per hour. Use whatever your numbers are.

I will add that having worked there and knowing the place/people/personalities is worth a premium and you have your own cost history to use as a guide - so should be able to refine it further from a base rate.

Also, FWIW, I highly recommend fixed hours/specific projects, else they will call you all the time (unless that's what you want for some reason).

Have fun!

 

[Taxman59]

Thanks for the guidance!! I was planning on a # about 1.4x my old salary, but I think I am going to suggest 2.5x and cap the total hours at 400.

I was bothered by the pres saying if the hours are too much, he will cut them back, and if he needs more, then he will unilaterally increase the annual hours!! That is a reason for me to up the hourly rate. I don't need the $$, but more $$ will pay for extravagances.

 

[Taxman59]

Tomorrow is my final day! Last night was the retirement party which was nice with some nice comments by people I didn't think I had touched. That made it somewhat sad, but it was also fun, thinking about the freedom fast approaching! Today was busy with meetings all morning and then several more in the afternoon. People stopped by leaving cards and best wishes making the day seem somewhat sad. Tomorrow we have a full office lunch meeting to go over a big presentation we gave last week. I am going to change from dress shoes and dress shirt to flip flops and a tee shirt (given to me today by one of the VPs) which says "The legend is retired". That will be a fitting end to the day. The COBRA health insurance will be about 25%higher then ACA, so I will make the change in carriers. The person they offered my position to has counter offered and tried to negotiate with a friend and not the COO, and the offer may be rescinded leaving the position open for another 3 months!!! They had 8 1/2 months to find someone, and it is looking like they will need a full year! I feel bad for some of those who are going to pick up the w*rk with no relief. Ow well, not my circus, not my monkeys!

Friday DW and I will head out on a month long trip, the first week staying off the grid then driving through PA, NY, Ont, MI and Wisc before returning home for a James Taylor concert on July 31st. Starting off this phase of our life right!


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[EastWest Gal]

Have a great trip! A road trip will be an awesome way to begin your time of freedom. Nothing makes me feel so free as being away from home and traveling. I'll wave at you as you go through my state (PA). Congratulations!

 

[spncity]

That is an awesome plan for the first month!

 

[kimcdougc]

How is your first day of retirement going?

 

[Taxman59]

For my last day, it seems that everyone had one last thing for me to do before I leave! I had planned to leave at 2pm, but finally grabbed the last items from my desk at 5pm and left! I am officially retired!!!


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[RockyMtn]

Welcome to the other side!!!


Today is the 6th anniversary of my first day in retirement! It just keeps getting better!!!

 

[Taxman59]

Today starts my 9th day of retirement. The problem is I was awake much of the night thinking about my former j*b. Most of my vacations lasted no more than a week, and I wouldn't sleep the last night after we packed up the suitcases. DW and I packed up last night so that we could get an early start to go tubing down the Potomac river. It brought back bad feelings about the end of vacation and the return to w*rk. Any one else have these flashbacks (not the good kind!) ? How long did they last? I have no real interest in going back, DW and I are planning to get involved in some charities later this year and a j*b would interfere with that and our travels.


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[MBAustin]

Sorry to hear that "flashbacks" are interfering with your big vacation, taxman. I had a few bad dreams about w*rk early on - it was long enough ago that I don't remember how many or how long they lasted, but I think it was just a handful and they didn't persist more than a month or so. Remember that all of this is new to your brain, so most likely time will help a lot. Hope you had some good tubing today (I grew up at the very western end of the Potomac and had no idea there was tubing anywhere on the river!).