When to Cut Back on Consulting?

[Tekward]

Good day all. 67YO & pulling SS based on health expectations (stent, etc.). Still consulting <1 week per month because I enjoy it and I'm paid well for my time ( I have enough to retire). I am now more aware of the trade-off between w*ork time and exercise opportunity (energy has limits). But I'm also a believer in the value of mental stimulation while engaging in the workplace. I typically don't look forward to the w*rk, but feel energized afterwards.
How have others managed this balance? Did you have a line in the sand to stop, or wind it down? I don't advertise or sell services, but there is a continued "pull" from past clients over the last several years. I suspect the answer is to raise my rates, but have a hard time quantifying the positive benefit of mental engagement. Thoughts?

 

[Involuntary Retiree]

Are you my DH? Ha!

He has been consulting for over 12 years, and he loves the work and the mental stimulation, and I love the money. He has "retired" at least 5 times.

During his last "retirement," he decided he would stay retired by raising (by a lot) his rate. Well, that didn't work. So, now, he's decided he's going to limit the scope of any work he agrees to perform -- kinda of "niche" work kind of thing. As of the last couple of months, this has been working.

We're both trying to decide how we feel about this development.

 

[Koolau]

If it's something that brings satisfaction, and it makes you money, sounds like win/win. Go for it as long as you are in charge of the whole process.

 

[jollystomper]

If you enjoy it, at <1 week per month I would not stop until it was no longer enjoyable. When I get an offer or interest for a full time position, I "jokingly" respond with: I am only considering offers that would require no more than 8 hours/week at no less than $100/hour plus any required expenses, can be done from home, and requires nothing more than review of information and data and providing assessment/recommendations. That keeps most of them at bay .

 

[freedomatlast]

I'm going to continue till it's no longer fun and mentally stimulating. I look forward to the interactions with the people I work with and the sharing of creative ideas to solve problems. And the extra money I feel free to blow on stuff I wouldn't normally treat myself to, doesn't hurt either.

 

[Exchme]

It’s all individual, I tried full retirement and it didn’t feel right. I feel much more useful if I work from home part time and I get to solve puzzles while they pay me and even provide benefits. Works well for me for now, and I think I will continue to do it until something like health, family or state of the business forces a change.

 

[sdtech]

I tried consulting after retiring - they really made it a great experience - very interesting work, high pay and international travel. But... I found I couldn't work "part time" and threw myself into the work so much it wasn't retirement... didn't need the money so after 9 months I retired for real. Both the experience and the decision to move on were worth it.

 

[aja8888]

I had my own consulting firm for almost 20 years. I was still going well into my late 60's as clients still wanted me to help them. I wound the work down slowly and ended up doing the last project around the time I turned 72. I'm in good health and physical condition so it was no problem going that long. I'm glad it's over, though, as the travel was wearing on me.

 

[Markola]

OP, one way to find that line in the sand for yourself is to obliterate it.

I semi-retired at 54 when Covid hit, and was fortunate to have consulting opportunities come along within a year. When inflation hit and the bond market crashed, I felt I needed more juice to meet my obligations, so I went full-time as an AVP of a large consulting company. I worked hard for one year and realized I didn’t like it. Some clients know how to engage and support a consultant and will listen to me. Many don’t, however.

My investments recovered, I have since left that company, and found a better balance with two small clients through my own LLC. I’ll likely keep them as long as I like working with the people I’m reporting to. Both people I report to want to retire themselves, so change is coming and I’ll see.

I guess my own answer is, there is no monolithic consulting career. If a consultant is fortunate to be financially independent, he/she is at liberty to really feel one’s way through the upsides and downsides of each and every constantly-changing consulting engagement, and see if it’s additive or subtractive to the larger context and freedoms of being FIREd. Good luck!

 

[SJhawkins]

I been thinking about this as I'm getting closer to the finish line. I have the opertunity to work part time as a consultant with the current place or at a number of other places.

The thing is I truly don't think it would be part time, sure I could work a smaller project for a month or so but that won't stop the phone from ringing 3 months later as the project is being built, it's always something. Not to mention I need to keep current on latest codes, tech, etc, have to count that time as well.

Sounds like your consultanting gig is more of when it's done it'd done, I could get behind that easier I think.

I get the be active part, delivering car parts sounds like a joy at this point rather then sitting at my desk

 

[Tekward]

I agree with many comments, especially unwanted travel. I think control is the key. I blocked the entire month of May as "booked" just to be available when a grandson is born. Priorities are clear. The amusing thing is that it triggers a scarcity mentality where clients worry about getting on my calendar.
Another unanticipated benefit is the avoidance of over training. I just played my 5th straight day of pickle-ball and I'm feeling it. I'll miss two days of exercise next week while on a client site. I guess I would call it physical/mental activity balance.

 

[Sojourner]

I did about three years of part-time, freelance consulting after I left my last full-time gig. The aspect of consulting that I started to grow weary of the most was not being in full control of my time. I loved the extra spending money, and the mental stimulation was a net positive, but eventually I found that I just couldn't tolerate the anxiety of worrying about deadlines or having to be "onsite" somewhere based on someone else's timetable. In the end, the little bit of extra money was not worth giving up the freedom to absolutely control my own schedule.

 

[CO-guy]

I'm in my 50s and quit my full-time position nearly two years ago to focus on consulting. I did end up remaining on at half-time for an additional year, although it was remote and barely 10h/wk. My plan was to wind down my consulting fully within five years of resigning, which my better-half still believes is unlikely.

In order to make progress in that direction, I've raised my rates several times in the past few years and focused on my most profitable projects. Those two things decreased my billable hours consulting from over-40h/wk to under-25h/wk with an increase in income. My goal for 2024 was 20-25h/wk and I billed just under 1200h for the year. For 2025, my goal is to remain under 1000h for the year and I'll reassess from there, but probably it will be the same strategy to keep whittling away.

Oh, and for context 95% of my consulting is remote and mostly asynchronous.

 

[Koolau]

It’s all individual, I tried full retirement and it didn’t feel right. I feel much more useful if I work from home part time and I get to solve puzzles while they pay me and even provide benefits. Works well for me for now, and I think I will continue to do it until something like health, family or state of the business forces a change.

Sounds very reasonable. Just keep an eye out for the business making demands on you that don't fit the plan.

Enjoy!