When does one retire?

Sounds a fantastic idea to me but my idea is that I was thinking of doing the same but having someone as a half owner of my business alternating working stints of three months each. I am sure there would be takers and if they are owners is the business then they should care for it really well. I reckon that it is a great idea and is also healthy for the country. Went to a talk a couple of weeks ago and an actuary had projected that if we could delay people retiring by a few years by making their later working years more flexible, then Australia's GDP would benefit by more than 1% per annum (I think that was what he said).
Andrew2001 Landcruiser 100S T/ Diesel
"Less plannin' an' more trippin'"

Nobby, what a good Q. Very interesting concept.
The normal partnership business can be a pain when you are in each others shaddow all day counting the minutes of who does what and have ideas that differ about simple matters. Many partnerships fail because of this fact. You also have the option of promoting someone to manage in your interests and pay suitable performance bonus', however this is plagued by the possibility of them knowing the intimacies of your business and stealing your customers and ideas and setting up their own business. Your idea is good.
One has to find somone who has the same passion and goals as yourself. It would also be necessary to establish a means of valuing the business at some futue time in case either owner wants to sell, and to give the other owner a first option to purchase the others share, recognising that the value of the business may be less than when first started. There would be certain costs that need to be shared. If retailing, it would be necessary to do a stock take at each hand over.
Don't they say "Work to live, don't live to work"
Maybe test the waters and see what comes up. The first 6 months each way could be set up as a trial period for each other, if it doesn't work agree to give them their money back.
May I ask what kind of business you are in ??

If it leads to adventure and 4wding its gotta be worth a go. What's the alternative ?Carpe Diem

The only certainties in life are Death and Taxes !!

At age 52 we created an On the Road business and spent the next 5 years travelling and working Australia. Then I had unexpected health problems and at age 58 had to shut down the business and go on a disability pension. We had enough money to buy a cheap house in the country and fit it out and saved a little for a rainy day. These days we get away as often as possible on family orientated trips or bush trips in the old 4by and the rest of the time is spent mucking about in the garden or doing jobs for SWMBO or visiting the Doc for whatever ailment has surfaced again. Our situation is that we have to live on an income of under $20,000 per year and we manage that quite well and still have three road going vehicles and two trailers. Budgeting becomes a byword and money management is crucial. One of the first things we did when we 'retired' was to cut up the Credit Cards.

I would like to work again and am now in the throes of doing some nominally paid IT work which involves a hobby. This should keep me amused for some time and also gets me out and about.

When the big SIX OH comes up you have tp prioritise your life. If you are healthy and want to keep on working then do so for your own sanity. If you feel like retiring at whatever age then do so even if the pickings may be slim. It is really a matter of choice. But some want to push the envelope too far and end up falling off the perch before they have achieved some of their life's ambitions.

Just a thought................

Cheers,
Willem

Always going somewhere

Nobby,

As an accountant, your idea of "selling" the business for 6 months immediately set off alarm bells. On the surface the idea sounds good but there are all sorts of legal ramifications and pitfalls that make your idea very risky. Please be sure to get some good legal and financial advise before making a move in this direction.

Not sure what type of business you are in so my next suggestion may not be viable, but have you considered leasing your business instead. A properly drafted lease agreement would free you of certain legal pitfalls referred to above but still give you an income. Also, the lessee would have "ownership" over the business and a long-term vested interest in seeing it prosper. Downside for you is it really would have to be a long-term arrangement (ie. much more than 6 mths. Probably 3 yrs with options). Once again, get some sound legal/financial advise.

:o) Melissa
Petrol 4.5L GU Patrol &
Camprite TL8 offroad camper
http://members.westnet.com.au/flatdog

nobby i agree with mallisa sounds good ,but the end result could be a unsuitable partner milking the business dry for 6 monthes of the year leaving you to play catch up or go broke, you could very much become a slave to your partners whims or greed.the worst case senerio is that they drag you into bankruptsy & you loose everything.then being forced to work when you should be retired,having said that if you still go ahead with the idea you would need to consider the impact of such a management style on staff & on your customers, would they feel cumfortable dealing with differant owners evry 6 monthes,also i would consider 5 monthes away each with 1 month between each departure to reformilurise yourself with the runnings over the past 5 monthes
jmo
regards bruce

Hi Nobby
We have just completed the first 6 months of retirement, after being force to retire at 53 through injury.
I have sold the business to my daughter(22), who delights in telling all the costumers that she has put me out to pasture.
One of the biggest advantages that we had was that I have know for about 5 years that this day was coming and so we planned the retirement, which made it easier.
We are surviving on a private disablility pension plus the tw6 weeks income per year that I earn when the daughter wants a break.
We have been surprised at how far we can travel and the places we can go now that we do not have to travel at a set time without breaking the bank.
At the end of 6 moinths we are well under budget.
I agree with Melissa that selling for 6 months, or even a partnership with 6 on 6 off would be legal difficult.
One friend has set up a great business of going and relieving people who own small business (retail) so that they can have 3-4 weeks off. He get 3 months off per year in one hit, plus a couple of months during the year.
Ray wanderin' in retirement. victor 2010

Love the responses.
The best time to go is as soon as possible.
If you visit a few caravan parks or "free" camping sites and speak to people you will find there are many travelling quite happily on a pension.
Hvaing had health problem for 20 years and being semi retired for most of that time and now on pension we have had many camping trips and holidays and in some ways it is cheaper to go away sometimes than be home-especially with grand kids .
We also holiday and visit many different places by house sitting for short periods.
I also agree it would be better to lease your business or perhaps appoint a manager -perhaps someone who is retired from similar business and is a little bored but does not want long term commitment.
Warren

Nobby
idea number 2 have you given any thought to packing the equipment into a trailer & taking the business with you , promotional items on the spot in small towns may just have you paid to travel,you then have the tax advantage of cost being off set against your business ie tax deductable just anouther idea to think over
regards Bruce

G'day Nobby
Partnerships are bloody difficult at the best of times so if you can avoid that path do so. "Sell 6 months of our business" - not sure how you go about that. Potential capital gains issues. legal issues etc. You definitely need to see some good quality advisers on that one. I think it may be best to get someone in to manage it for the time you want to be away. Not sure what the work would actually involve but perhaps it would suit a retired person/couple who have done their travelling or have no interest in being away for extended periods. That way there's no need to worry about them stealing clients etc - they wouldn't be interested in that. Given today's technology there is no reason why you can't travel and still keep an eye on your business. I know you're supposed to be on holidays but it may be a small price to pay to retain total control of your business. If it's a good business one day when you do want to retire fully it will be worth a few bob - maybe you can get to that $1m yet! Incidentally how much you need to live comfortably varies from individual to individual depending on your needs. $1m for some will be too much and for others not enough.

G,day Nobby,

When does one retire from work and start exploring Aus?. When it suits you - bugger everyone else!!

I'm 54 years old and we decided to wind down the business (Public Accountant), sell up in Sydney and move to a large country centre (Bathurst). We've bought a nice little cottage on 2 1/2 acres with a river running through the back acre about 25 minutes out of town. By the time we renovate and make the place the way we want it it will be a very nice place and we'll have a swag of money in the bank. The plan is to work casually to put food on the table, travel Aus where and when we want, and in about 5 years cash in the super after the travelling is done. We'll pay our way - no one will pay our way for us.

I'm sick and tired of people saying to me I should be working until i'm 65. What crap! Who wants to travel Aus when the back's gone or the hip needs replacing or the legs won't hold you up. I want to see Aus when I'm fit to see it , get around and enjoy it.

So Nobby you do what suits you. Where there's a will there's a way so I'm sure you will work something out as far as the business is concerned.

My biggest contribution to this thread is to say that 6 months is NOT a retirement its a holliday!
I took off when I was retrenched at 53. I gave everything to my two big sons and lived in a camper van. I rented a house every now and again but the point is this.
The ONLY way to enjoy retirement and to do the big trip is if you don't have a end date!
I would love to tell my story but I would be the only one to find it interesting. You'll find find that your own story will be worth telling but you have to do it first.
Dump your busines and go.
How many people on this thread have said that they 'got health problems'?
You are clearly ready and willing so go, bloody well go!

PS.
There have been some hints on this thread of some lovely stories waiting to be told. Lets get together and write a book or two!