Here I am enjoying full retirement and learning the ropes of being totally free of obligations. Today the phone rings and it's an associate of mine from the past. His company is opening an Assisted Living complex in another city. He tells me it will open for business in mid-September. Then the shoe drops: "Would I be interested in becoming general manager"? This is a 44 unit assisted living facility, in a fully rehabbed building, with a nearly already filled waiting list. It is a tax credit property, which he knows I am very familiar with. It is individual apartments, provided meals, and a full time nurse on staff. The "meals and meds" as it is called are provided by a contract health care provider, so those would not be in my AOR (area of responsibility). I would run the leasing and maintenance and grounds under an operating budget. I would only need to say yes and forward my compensation requirements.
A new facility, first year out of the box, very time consuming.
I want to say yes, but I want to pass also. Wife scowls when we discuss this.
I feel like a recovering employed person. Temptation back to the addiction is intense.
What to do, what to do?
Maybe we need a support group for the forum.
@HSpencer
I hear you. It is clear compliment to your abilities when someone who knows you offers you this kind of opportunity. And who doesn't like compliments? Just last weekend, I had two good friends who were recenlty appointed judges lure me to a BBQ then proceed to insist that I should apply for the bench as well. Flattering, but not where my heart is. How do you deal with friends who want more for you than you want for yourself?
As I see it, if opportunity doesn't present an invigorating challenge, only the prospect of "unnecessary" income, then I'd say thanks but no thanks.
I hear you. It is clear compliment to your abilities when someone who knows you offers you this kind of opportunity. And who doesn't like compliments? Just last weekend, I had two good friends who were recenlty appointed judges lure me to a BBQ then proceed to insist that I should apply for the bench as well. Flattering, but not where my heart is. How do you deal with friends who want more for you than you want for yourself?
As I see it, if opportunity doesn't present an invigorating challenge, only the prospect of "unnecessary" income, then I'd say thanks but no thanks.
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jacob
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I think working for the sake of working is not strictly harmful as long as it's done conscientiously. Would the job increase "utility", that is, will it add to things you value?
Reasons I'd go back to work:
I'll learn something useful [to me].
Minimum of meetings and office politics.
Political maneuverings and self-promotion is not a requirement for success.
The work has a strong vision---it's "important" work.
Pretty hard to find work like that, eh?
Reasons I'd go back to work:
I'll learn something useful [to me].
Minimum of meetings and office politics.
Political maneuverings and self-promotion is not a requirement for success.
The work has a strong vision---it's "important" work.
Pretty hard to find work like that, eh?
One of the advantages of being financially independent and early retired is the ability to choose whether or not you want to work on an assignment. I found I got bored when I didn't have anything challenging to do, so I went back to work. But I walk away from situations that get toxic.
I work as a contractor, so both the client and I have to agree to renew the contract when it is up. If I don't like the terms or the situation, I just go away. Whenever anyone asks me why I left my last assignment, I say I completed my contract.
Even though I can live entirely on investment income if I had to, I find it better during these uncertain times to depend on business income whenever I can. My investments can continue to grow without having to support me. I think of this arrangement as increasing my margin of safety. If my investments decline in value due to a market plunge or my expenses spike suddenly, having income from contracting will help me get through the rough patch more easily.
When I make more business income than I need (i.e., I work 40 hours a week rather than 20 hours a week), I let my cash build up so that I have more reserves to get through a market plunge or expense spike.
When the market plunged in late 2008, for example, the value of my Traditional IRA dropped quite a bit. I was able to roll it over to a Roth IRA and pay the taxes with the cash I had on hand (my income, luckily, was low enough that year to allow me to do the Roth conversion). Without the cash on hand from contracting, I would not have been able to take advantage of Mr. Market's gift as easily as I did.
I work as a contractor, so both the client and I have to agree to renew the contract when it is up. If I don't like the terms or the situation, I just go away. Whenever anyone asks me why I left my last assignment, I say I completed my contract.
Even though I can live entirely on investment income if I had to, I find it better during these uncertain times to depend on business income whenever I can. My investments can continue to grow without having to support me. I think of this arrangement as increasing my margin of safety. If my investments decline in value due to a market plunge or my expenses spike suddenly, having income from contracting will help me get through the rough patch more easily.
When I make more business income than I need (i.e., I work 40 hours a week rather than 20 hours a week), I let my cash build up so that I have more reserves to get through a market plunge or expense spike.
When the market plunged in late 2008, for example, the value of my Traditional IRA dropped quite a bit. I was able to roll it over to a Roth IRA and pay the taxes with the cash I had on hand (my income, luckily, was low enough that year to allow me to do the Roth conversion). Without the cash on hand from contracting, I would not have been able to take advantage of Mr. Market's gift as easily as I did.
Question #1: Is this a full time job? Or can you perform most of your duties in spare time as you live there?
How lucrative is it? Will it be easy to resign? Will there be hard feelings if you do?
... Personally, I would have to be offered quite a bit to give up retirement. At least 3 times what my day job is paying right now for me to accept FT employment again.
How lucrative is it? Will it be easy to resign? Will there be hard feelings if you do?
... Personally, I would have to be offered quite a bit to give up retirement. At least 3 times what my day job is paying right now for me to accept FT employment again.
@Jacob
All your list would be happening on this. Especially the last item. Working with the elderly has intense rewards. I have run elderly properties (Sect 515), but never an assisted living one.
@JohnnyH
In this case, the owner would hand me the keys and tell me to have a nice day. Hours immaterial. The only time I would see the owner is when I took him the quarterly P&L. It would be a "I built it--you run it" type of thing.
I would probably look for around 35-38K. These Tax Credit properties have a low Return to Owner value for the first five years. I would actually be realizing as much as the owner. These properties are depreciated over 15 years, and that is how the money is made. I could always resign, but my dedication to the property would not let me just walk away. I would hire my own replacement if I chose to leave.
Wife is not on board fully but will do it if I want. I guess I am feeling like I got off the train and watched it pull away without me.
All your list would be happening on this. Especially the last item. Working with the elderly has intense rewards. I have run elderly properties (Sect 515), but never an assisted living one.
@JohnnyH
In this case, the owner would hand me the keys and tell me to have a nice day. Hours immaterial. The only time I would see the owner is when I took him the quarterly P&L. It would be a "I built it--you run it" type of thing.
I would probably look for around 35-38K. These Tax Credit properties have a low Return to Owner value for the first five years. I would actually be realizing as much as the owner. These properties are depreciated over 15 years, and that is how the money is made. I could always resign, but my dedication to the property would not let me just walk away. I would hire my own replacement if I chose to leave.
Wife is not on board fully but will do it if I want. I guess I am feeling like I got off the train and watched it pull away without me.
"I guess I am feeling like I got off the train and watched it pull away without me."
Before you get back on the train again, you may want to make sure this really is not the best stop for you. You seem to know rather well what the next stop offers. Have you explored the current stop to your satisfaction?
Before you get back on the train again, you may want to make sure this really is not the best stop for you. You seem to know rather well what the next stop offers. Have you explored the current stop to your satisfaction?
@Matthew - Thanks
@ktn - Thanks
@all responders - Thanks
After much deliberation/one sleepless night/some looking at things, I have decided to favor my wife's wisdom. I have never gone wrong on her gentle and quiet input.
Like the old anti-war chant of past years: "Give Peace a Chance", I have decided to use that to say "Give Retirement a Chance".
Today I am calling the guy who offered with my regrets. I am going to "Give Retirement a Chance".
Thanks so much to all for your comments!!!
@ktn - Thanks
@all responders - Thanks
After much deliberation/one sleepless night/some looking at things, I have decided to favor my wife's wisdom. I have never gone wrong on her gentle and quiet input.
Like the old anti-war chant of past years: "Give Peace a Chance", I have decided to use that to say "Give Retirement a Chance".
Today I am calling the guy who offered with my regrets. I am going to "Give Retirement a Chance".
Thanks so much to all for your comments!!!
Rather than turn this down cold, I would give your friend the opportunity to make an offer you can't refuse. Tell him you are interested, but only as an advisor... or only with a capable assistant... or only if x, y, z are met, whatever is important to you and your wife and would make it a no-brainer to say yes.
Surely there is the possibility to turn this situation into an offer you and your wife couldn't refuse. Ask for it! Even if what you ask for sounds ridiculous, the other party might prefer to have the option. Just make sure you'd be psyched to do whatever you propose.
Surely there is the possibility to turn this situation into an offer you and your wife couldn't refuse. Ask for it! Even if what you ask for sounds ridiculous, the other party might prefer to have the option. Just make sure you'd be psyched to do whatever you propose.
@akratic and JohnnyH;
You both placed good points, and I could get up to the maximum possible from the guy easily. When one of these owners create a property like this one, the absolute last thing they want is having anything to do with running it. I am currently in the same situation with the properties I and my partners invested in. I ran the four we bought into for seven years. My partners wanted nothing but their share of the cash flow, so I took all the management fees plus my share. The first of this year, I forewent the management fees, and we turned it all over to a property management company, and wife and I retired.
A new property, beginning with the initial lease up, is a 24/7 endeavor for at least six months up to a year. This guy will probably hire a management company, which would cost him about the same amount as I would, but he was wanting a "set and forget" type of thing. Management companies take their cut, and sometimes you have less than ideal folks behind the desk of the properties they run.
So another thanks to everyone for suggestions and input. I think I am where I need to be on this finally!!
You both placed good points, and I could get up to the maximum possible from the guy easily. When one of these owners create a property like this one, the absolute last thing they want is having anything to do with running it. I am currently in the same situation with the properties I and my partners invested in. I ran the four we bought into for seven years. My partners wanted nothing but their share of the cash flow, so I took all the management fees plus my share. The first of this year, I forewent the management fees, and we turned it all over to a property management company, and wife and I retired.
A new property, beginning with the initial lease up, is a 24/7 endeavor for at least six months up to a year. This guy will probably hire a management company, which would cost him about the same amount as I would, but he was wanting a "set and forget" type of thing. Management companies take their cut, and sometimes you have less than ideal folks behind the desk of the properties they run.
So another thanks to everyone for suggestions and input. I think I am where I need to be on this finally!!