Part time vs. early retirement

[Backpacker]

I am cooking up a plan to phase myself out of a job. I torn between ER now, which is about 2-3 years earlier than I originally planned; and the opportunity to create a part-time for myself. This position may not present itself again and if I work this right I can be PT with a very flexible schedule and make very good money. I am creating a position for my self that takes the fun parts of my current job, lets me travel around the state and set my own schedule. In theory I could work hard for 1 or 2 weeks a month and take the rest of the month off. Based on my typical 55-60 hour work week I may make more per hour as a PT employee!

Boss is still kind of struggling with my request. I agreed in theory to about a 6 month transition as I am executive level in the company with a ton of specialized knowledge. Boss is on a golden parachute contract and will be retiring in about 4 years; although I am younger I will effectively be done sooner and younger This is causing no end of head scratching. I've gotten used to the nearly daily call asking if I changed my mind yet.

I question if this ER or just still PT work? I've searched past posts and don't really find anything similar although I am sure I've read about phasing out in other posts.

I also wonder if anyone here has been on the employee end of a non-compete agreement? We are thinking that one is needed for the position (not that I care as when I am done I'm done but hey if the Co. wants to give me a big ol' check to not compete who am I to turn that down?) Are there things I should be making sure are in the agreement?

 

[38Chevy454]

I think you can define ER as you want. Especially since your plan is do the P/T for 2-3 years max and then retire fully. So it is kind of a significant step towards being retired, just not fully there. However it certainly is not working F/T, so you are retired to some extent.

As long as you can get it to work out and you are happy with the working, then do as you wish. I would not call you fully retired, but would consider you in an early retirement mode.

Someone with more legal knowledge can offer opinion on the non-compete. From your description it seems that it would not cause you any trouble once you leave the P/T work at current employer.

 

[Texas Proud]

I kinda went part time because I was doing temp jobs.... however, there has not been any close to me this last year.... I am hoping to get a few next year...


I like the ability to go to a new company and try and fix a problem... much more interesting than doing the same thing for years after year...


However, it is what you and spouse wants.... if you plan to travel it is better to do it when you are younger... just my opinion....

 

[Focus]

I asked this question a couple of years ago and got some good feedback:

http://www.early-retirement.org/forums/f28/what-does-downshifting-really-look-like-69455.html

A phased retirement didn't work for me, but maybe you'll have better luck. I crafted the position description, like you, so it was ideal on paper. But the reality was different. Everything was an uphill battle since there essentially was no precedent. People weren't sure how to relate to me in my new role. Some resented it. I soon discarded the idea and fully retired.

Something else to consider is technology and the expectations it's created for around-the-clock availability. That makes it harder, if you're at a higher level in an organization, to set firm boundaries around your part-time schedule.

 

[RunningBum]

I question if this ER or just still PT work?

Why does this matter one single bit? What would you do differently if it was classified one way or the other?

Sounds like a sweet deal. I worked 4 hour days PT, which was kind of nice but limited trips to pretty much the same as a full-timer, except for being able to extend long weekends slightly.

To answer the question, to me ER means not working anymore. PT is still work. But I still contend that the important question is whether you are ok with working PT or want to completely retire, not what label someone else puts on it.

 

[FIREd]

ER or PT? It is your life, do what makes you happy without worrying about labels. Sometimes people make it sound like calling yourself retired comes with a trophy. There is no trophy (or mine got lost in the mail). So try the PT for a while. If you don't like it, quit and enjoy your retirement.

 

[Backpacker]

Thanks for the link Focus, I read it through and found some good advice in there. I had never heard it referred to as down-shifting before. The one comment I liked was that being PT felt like priorities were much more in balance.


RunningBum; great point on labels.


I am quite prepared to walk if the PT gig doesn't work out. I suppose I am still trying to wrap my head around being PT and one of the staff instead of one of the bosses. Not that I have a huge ego but I think it would be hard not to be consulted on policy matters anymore; I've been part of management for 30 years. This is one great part of switching to outside sales; if I'm not in the office I most likely won't get dragged into the office political chatter, and should be easier to step away from management role. If I was to be PT in the shop I doubt it would work out. It may be nice to blissfully ignorant for a while.

 

[Katsmeow]

Backpacker - 5 1/2 years ago and went in to saying I was going to retire (I was 55). I got talked into working very part-time. I'm still doing it working from home a few hours a week on average. It has worked out fine.

On the non-compete thing, those kinds of agreements are governed by state law. Each state is different. You should consult with a knowledgeable lawyer in your state.

 

[brucethebroker]

Wife and I moved to flexible PT work 2.5 years ago and really like it. We have a small business and can shut it down when we need to get away. Love the tax breaks (including writing off health ins. costs) and extra income. Sometimes, on "days off" I get bored, so I know I might struggle with being totally retired. Financially, we can walk away anytime we want.

Right now, it feels right and is quite enjoyable.

 

[Al in Ohio]

It's called PT because it's part time "work". I plan to propose a similar work agreement in a few months, although I plan to work no more than 24-30 hours each month. That's real close to retired, and I kind of consider my retirement day as the day I cut back that much, but the real true retirement day will be zero days worked after that day.


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[Souschef]

The only things i do that look like work are data entry once a week for a food bank and a breakdown once a month. I also volunteer with the IRS/AARP tax preparer program for low income people

 

[Ronstar]

OP's plan sounds quite feasible to me. I had a similar situation. As part owner of a company, I had an employment contract with a non-compete clause. The non-compete specified what tasks I could not do outside of the firm, the geographic limits, and terms by which the non-compete could be terminated. I gave one year notice of my intention to terminate my employment contract. During that year, I trained my replacement and the company and I reached an agreement where the company would buy my stock in exchange for me working 960 hours during the next calendar year, half of the hours to worked in the office, the other half remotely. Upon termination of the original employment contract, we entered into a new one year contract specifying the terms we agreed upon. The new one year contract did not include a non-compete clause because my original non-compete would not expire until 2 years after termination of my original contract. I worked the 960 hours in one year per my second contract and my non-compete expired a year after my 2nd employment contract terminated. I have continued to work (about 100 hours in 2015) without a contract.

Sounds like the OP and OP's employer could arrive at a similar agreement - if the boss and the company would agree to OP's plan.


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[Backpacker]

So here we are 2.5 months since I told my boss I wanted to step down and go part time. Still no announcement to staff and no plan on replacement, no ads no nuthin'. Some of you fine folks predicted that a long transition period would be wasted - how right you are! Meanwhile I keep attending planning sessions and staff development and wondering what kind of goofy situation I am in. I scheduled a long vacation mid summer and hope to return from that as a PT employee. We have auditors coming beginning of March and I suspect there will not be an announcement until after they are gone. Effectively wasting 3 of the 6 months notice I gave... sheeesh . My biggest fear is that I switch to PT wage and they still haven't hired or trained a replacement and I end up doing old job plus new job.

 

[Al in Ohio]

Any new developments backpacker? Hopefully your boss has moved forward on filling your old position in some way. If not, have you considered re-emphasizing the importance of that? In your new PT position will you work autonomously at home, or back in the office?


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[Backpacker]

Announcement was made end of February, interviewed 2-3 candidates and have suspended interviews for 2 weeks while HR is on spring break. Meanwhile I am scheduled to attend out of town conference in a few weeks, that probably won't pertain to my new job. 2&1/2 months until I leave for 3 week vacation. My best direct report applied but I don't think he would accept if they offered.

New job will be outside sales, calling on car dealerships. I set my own schedule. Planning on 1 week on and one week off. Maybe 1 or 2 days a month in the office.

I appreciate you asking!

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[Teacher Terry]

We have been semi-retired for 4 years and love it. It has not interfered with travel at all. We took 2 trips last year of a month each.

 

[Sunset]

I feel I'm retired.
I suppose you could say I do OW (occasional work) since I take a job now and then that lasts 2 days up to 4 weeks.
The 4 week one last year did honestly feel like work after 3 wks, but the rest of them have felt like a change of pace, a puzzle to solve, and not much like a grinding work.

I turn down lots of jobs and inquires as usually they want someone full-time for 6 months, and that is too much like work.

It has not interfered with our vacation plans at all and usually only amounts to a total of 2 months in a year.

 

[Texas Proud]

I feel I'm retired.
I suppose you could say I do OW (occasional work) since I take a job now and then that lasts 2 days up to 4 weeks.
The 4 week one last year did honestly feel like work after 3 wks, but the rest of them have felt like a change of pace, a puzzle to solve, and not much like a grinding work.

I turn down lots of jobs and inquires as usually they want someone full-time for 6 months, and that is too much like work.

It has not interfered with our vacation plans at all and usually only amounts to a total of 2 months in a year.

What kind of job do you get for a few days to a few weeks

I would be interested in doing that if it paid right.... my DW does substitute teaching, but the pay is kinda crappy.... like $95 a day, and you have to put up with kids that will bother you...

 

[pb4uski]

...My best direct report applied but I don't think he would accept if they offered. ....

Then why did he apply... so he could get the satisfaction of telling them "Thanks for the offer but no thanks"?

 

[Sunset]

What kind of job do you get for a few days to a few weeks

I would be interested in doing that if it paid right.... my DW does substitute teaching, but the pay is kinda crappy.... like $95 a day, and you have to put up with kids that will bother you...

It is a bit specialized.

I design and code software, the short jobs are to fix Wordpress sites where some plug-in does not do exactly what is needed, or add new functionality to a website.

The longer jobs are to design/code/test custom software for example; feedback at conventions, or some survey software on tablets at trade shows.

Sometime I do the work from home and don't even need to go to the clients location, so I save on the rush hour traffic tension.

It pays very well.