How Much is a Month Worth

[Stu Jackson]

Originally Posted by sailorboy1

Some of you should admit that you LOVE these threads. That's really the only explanation of how I am able to force you read and respond to them.

Yup, you sure force me to read everything you write.

Why not just work for another five years and forget all this trivia?

[sailorboy1]

Originally Posted by Stu Jackson

Yup, you sure force me to read everything you write.

Why not just work for another five years and forget all this trivia?

Because I don't have the energy to provide you with an extra 5 years of entertainment. You need to ween off.

[Cuttyhunk]

I've skipped the umpteen replies. I can tell you that I had a similar situation in my 30s...we had an ESOP, my company was bought out, the ESOP vested in stages. It was more than $10k for me, but I gave up that money and went cruising for two years. That trip was life-changing and I have absolutely no regrets about giving up the payout rather than continue working when I was not happy there.


Sent from my iPad using Cruisers Sailing Forum

[sailorboy1]

Actually the company I work for would be worth more to a competitor and if bought out would go for a premium. So to buy the company they would have to buy out the ESOP stock and I would get more.

The only reason we are doing the ESOP is to allow the older people that currently own most of the stock to get their money in a way that doesn't result in the company having to sell itself, which would result in a lot of people losing their jobs. But the current stock owners know they are losing money taking the ESOP route, but the employees matter to them.

BTW - there are lots of companies with an ESOP. But very few that are 100% ESOP owned like we will be shortly. Once we become greater than 90% ESOP owned the company pays NO federal income tax and becomes 40% more profitable just from that. This of course also will give the company a huge competitive advantage in our market.

How does this matter to the thread? It is that really the odds are that the extra $10k I would get by working the extra 1 month is more likely going to grow and be worth more later for me (more money in the cruising kitty).

[Hud3]

So, Don. You're saying that if you work one more month (in an airconditioned office) you can avoid motor-sailing in the hot, humid, windless weather of August, and head out to far horizons in the lovely sailing weather of September. And, oh, by the way, earn $10K of stock that will likely appreciate over time.

It's a no-brainer, unless I'm missing something.

[sailorboy1]

Originally Posted by Hud3

So, Don. You're saying that if you work one more month (in an airconditioned office) you can avoid motor-sailing in the hot, humid, windless weather of August, and head out to far horizons in the lovely sailing weather of September. And, oh, by the way, earn $10K of stock that will likely appreciate over time.

It's a no-brainer, unless I'm missing something.

Thanks. I would have to not leave till Oct 1 though, but local New England sailing is nice in Sept. But the only air conditioning I ever get while working is when I'm in the car driving between customers

[Hud3]

As long as you can get down to Hampton Roads, Virginia, by the end of October, you're golden. Then you can head offshore or continue down the ICW in November before the really bad weather starts.

[sailorboy1]

Originally Posted by sailorboy1

Kind of a continuation of my 55 or 56 thread about whether to work an extra year (I'm working the extra year) before stopping working to head out cruising:

I've decided to work till next year before stopping working and heading out cruising (overall CF said to do this). So in looking at this timing I started looking at my company's ESOP (Employee Stock Ownership Program) that is basically free money given to me as company stock. I'm in at the ground floor of the ESOP and there is a good chance that within the next year the company will be 100% owned by employees in the plan (major major benefits for the company profitability). This is "free" money that I get for just being an employee. And I'll already be 100% vested this year for you that understand.

Next year the years could be easily worth $10,000 for the year to me (more than what I already have) AT AGE 65 (I'll be 56 next year). BUT to get I have to be an employee till the end of the program year, which ends on Sept 30, and I really wanted to leave earlier to see the East Coast of US as I head down to get out of the cold. And by the time I can cash out of the program (9 years later) there really isn't any guarantee that the stock with be worth anything (but could worth a LOT more than the $10,000).

So the question is: would you work a few extra months, beyond the extra year you already have decided to do, in a job you really don't want to do, to maybe get $10,000 in 9 years? It could be $0 but then it also could be a lot more than $10,000 if the company continues to do well.

Goes right to the heart of the "go now" argument.

Well it is looking like my company's ESOP plan is going to go all in this year and that 71% of the company stock is going into the plan. That will make the company 100% employee owned and we wouldn't pay any more income tax (Take that Bernie).

This could be worth around $90k to be in my account, but I wouldn't be able to start collection it for 9 more years and it would pay out over 5 years.

This may be just too much money for me to pass on.

[Cadence]

Originally Posted by sailorboy1

Kind of a continuation of my 55 or 56 thread about whether to work an extra year (I'm working the extra year) before stopping working to head out cruising:

I've decided to work till next year before stopping working and heading out cruising (overall CF said to do this). So in looking at this timing I started looking at my company's ESOP (Employee Stock Ownership Program) that is basically free money given to me as company stock. I'm in at the ground floor of the ESOP and there is a good chance that within the next year the company will be 100% owned by employees in the plan (major major benefits for the company profitability). This is "free" money that I get for just being an employee. And I'll already be 100% vested this year for you that understand.

Next year the years could be easily worth $10,000 for the year to me (more than what I already have) AT AGE 65 (I'll be 56 next year). BUT to get I have to be an employee till the end of the program year, which ends on Sept 30, and I really wanted to leave earlier to see the East Coast of US as I head down to get out of the cold. And by the time I can cash out of the program (9 years later) there really isn't any guarantee that the stock with be worth anything (but could worth a LOT more than the $10,000).

So the question is: would you work a few extra months, beyond the extra year you already have decided to do, in a job you really don't want to do, to maybe get $10,000 in 9 years? It could be $0 but then it also could be a lot more than $10,000 if the company continues to do well.

Goes right to the heart of the "go now" argument.

That sounds like a personal decision!

[oldragbaggers]

Don, if you were 70 and had health issues, and had enough money already to do what you want to do, I would say "what the hell, it's only money." But you are pretty young and, I assume (?), healthy. That's a lot of money for not a lot more time. As much as I am absolutely dying to go I think I would hang in there for a payout like that. But that's just me.

[sailorboy1]

Originally Posted by sailorboy1

Well it is looking like my company's ESOP plan is going to go all in this year and that 71% of the company stock is going into the plan. That will make the company 100% employee owned and we wouldn't pay any more income tax (Take that Bernie).

This could be worth around $90k to be in my account, but I wouldn't be able to start collection it for 9 more years and it would pay out over 5 years.

This may be just too much money for me to pass on.

Never mind I got some more info

[Cadence]

Originally Posted by sailorboy1

Never mind I got some more info

I went through should I quit with a $100,000 thirty years age. Wait for profit sharing after the first or quit before the first and income averaging laws changed. I really don't think this is the place to get your question answered.

Ask a CPA of an attorney or go with your own feeling. I wouldn't presume to advise you.