When does one retire?

Submitted: Sunday, Nov 30, 2003 at 17:31
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When does one retire from work and start exploring Aus? If you listen to the financial advisers you have to have at least a million to live comfortably. Leave me alone! Who has that sort of money( I suppose 2% of the population). I am 54y.o. and am planning to go in 3 years and I'm sure I wont have 1m by then. Our plan is to sell 6months of our business( as opposed to a partnership).What they make they keep, at the end of 6 months I come back and it's my turn for 6 months. I think that everyone wants to travel Aus but are reluctant for the reasons 1. We all have to have an income 2. We don't want to do it for ever 3. We all want to have somewhere to call home. I reckon my plan solves these problems. The only problem I forsee is who I sell it to( I still have to have a business to come home to). What do readers think of this idea?
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Reply By: Member - Andrew & Jen - Sunday, Nov 30, 2003 at 18:12

Sunday, Nov 30, 2003 at 18:12
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'"
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Follow Up By: Member - NOBBY - Sunday, Nov 30, 2003 at 19:16

Sunday, Nov 30, 2003 at 19:16
Andrew.. I don't think that 3 months would be long enough. I would'nt want to drive like Brock to get anywhere and then have 3 weeks and have to come home. Also, the "partner" would be buying half the business so it would be in his intrest to make sure it does well, or else he also has done his money. I would think under this arrangement I could work well into my 60's and still make a good quid as well as have a good life. Sounds ideal does'nt it. I'm sure there will be a hi-cup at some stage, but we all have to have a plan.
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Follow Up By: Member - Andrew & Jen - Sunday, Nov 30, 2003 at 19:23

Sunday, Nov 30, 2003 at 19:23
"Three months not long enough" - three months at my stage of life sounds like an impossible dream with all the school years ahead of us. Maybe we could do the same with parenting...LOL. I am hoping that technology will enable the kids to distance learn a bit more in the next few years and allow us to travel some more. I reckon that you would have to share the seasons - unless someone wanted say our summer to ski in Canada and you wanted our winters to travel northern Australia. I reckon that there would be lots of people that would jump at the chance if your business was good.
Andrew2001 Landcruiser 100S T/ Diesel
"Less plannin' an' more trippin'"
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Reply By: Member - Cocka - Sunday, Nov 30, 2003 at 22:18

Sunday, Nov 30, 2003 at 22:18
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
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Follow Up By: Member - NOBBY - Monday, Dec 01, 2003 at 09:16

Monday, Dec 01, 2003 at 09:16
Cocka.. thanks for the advice. I own a small business in Bris. that makes wetsuit stubby coolers. If you need some I have plenty of samples, so send your address.
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Reply By: Willem - Sunday, Nov 30, 2003 at 22:27

Sunday, Nov 30, 2003 at 22:27
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
AnswerID: 38993

Follow Up By: Member Colin - NSW Bungendore - Sunday, Nov 30, 2003 at 23:59

Sunday, Nov 30, 2003 at 23:59
Willem
Apart from your health problems you seem to have things well sorted and the correct attitude.

As far as recomending an age to others, I think it is different for everyone. Getting good advice is probably the biggest problem.

I retired last year (pre 55th birthday) from the APS after getting a redundancy 12 months previously. If I had stayed on I would have had to work until I was 65 to get the same pension!!
All my super lump sum went to pay off the house and my ex-wife's share of my super! So now I'm managing OK on about $850/fn after tax and I am still paying $200/fn 'child support' (this should end soon as my daughter is 18yo and just finished year 12).

At some point I will sell my property and move to something cheaper which will enable me to travel a bit more.

Something I found as a big problem was actually being retired ! Not going to work anyore was/is an issue for me, so being prepared to do something else after retiring is important.

Subaru Forester
"size isn't everything"
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Reply By: Member - Melissa - Monday, Dec 01, 2003 at 01:00

Monday, Dec 01, 2003 at 01:00
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
AnswerID: 39006

Follow Up By: Member - NOBBY - Monday, Dec 01, 2003 at 09:14

Monday, Dec 01, 2003 at 09:14
Melissa.. thanks for that "free advice" . First time I have ever received anything from an accountant free. With regards to leasing the business, I still want to have a intrest in it and I still like what I do for a quid( we have a small business in Bris. that makes wetsuit stubby coolers). I realise that there is always the chance that the "partner" will do a runner with my list of clients, but would he be able to take half the machinery etc. Even if he did do the dirty, he has already paid to buy in so I only receive half what I think the business is worth. As I started it from scratch I don't owe anything on it so I don't have to pay off banks etc. I certainly see your point about bankruptcy etc, and I have 3 years to iron out the small details. I will certainly have a long chat to my legal team before I leap. If you need some Coolers I have plenty of samples, just send me an address.
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Follow Up By: Member - Cocka - Monday, Dec 01, 2003 at 10:47

Monday, Dec 01, 2003 at 10:47
Melissa I interperet what you are saying about the 6 months as "selling the business for 6 months" which sounds different to what Nobby says as "selling a 6 month share of the business". I'm not trying to be pedantic but just clearing the undrstandings. I guess in the end what Nobby wants really is still a partnership. The difference being that each partner goes walk-about for 6 months, or I like the further suggestion of 5 months with a 1 month cross over. I feel that such an arrangement would suit a lot of semi-retired folk that have some business acumen and time on their hands. In the right hands the business may even prosper with a bit of new blood.
Of course one cannot be blind to all of the "what-if "('s) that are a part of good business practice together with sound communication skills.
I guess, as you have declared your professional skills, it looks like an accountants nightmare.
Carpe Diem
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Reply By: bruce.h (WA) - Monday, Dec 01, 2003 at 01:40

Monday, Dec 01, 2003 at 01:40
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
AnswerID: 39010

Reply By: Member - Raymond - Monday, Dec 01, 2003 at 08:29

Monday, Dec 01, 2003 at 08:29
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
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Reply By: WarrenM - Monday, Dec 01, 2003 at 13:08

Monday, Dec 01, 2003 at 13:08
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
AnswerID: 39042

Reply By: bruce.h (WA) - Monday, Dec 01, 2003 at 14:30

Monday, Dec 01, 2003 at 14:30
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
AnswerID: 39052

Reply By: Moose - Monday, Dec 01, 2003 at 14:41

Monday, Dec 01, 2003 at 14:41
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.
AnswerID: 39053

Reply By: Member - John (Penrith) - Monday, Dec 01, 2003 at 16:11

Monday, Dec 01, 2003 at 16:11
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.

AnswerID: 39065

Follow Up By: Member - NOBBY - Monday, Dec 01, 2003 at 23:50

Monday, Dec 01, 2003 at 23:50
John.. thanks for the reply.I can't go for another 3 years because I have to wait for the bride to retire from the bank. It's worth the wait I'm told.By that stage I will be 57 and am still fairly fit( still play golden oldies rugby), but I can see what you are saying and totally agree.Sounds as though you have it made at Bathurst and good luck to you. Confusious says that a journey starts with one step, but why does it have to be such a big bastard? Funny how fast you get to page two on this site isn't it.
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Reply By: ceredig - Monday, Dec 01, 2003 at 17:21

Monday, Dec 01, 2003 at 17:21
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!
AnswerID: 39071

Follow Up By: Willem - Monday, Dec 01, 2003 at 22:18

Monday, Dec 01, 2003 at 22:18
ceredig,

I have a few yarns up my sleeve......
You can contact me via my website www.kempen.id.au for a chat or some ideas. Plenty of stories,some motivation but finding the time to do it is a problem...no, maybe I am the problem.....

Cheers,
Willem

Always going somewhere
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