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Retirement Announcement

WIP

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#1
On June 4, I will be celebrating 28 years with my current company. I have made the decision to retire early in March, 2019, and would like to know what is an appropriate way for me to announce my retirement First, I’ll share a little history.

The company I work for is a Christian-based company. It’s been that way for as long as I have been here. Our CEO and former owner is a wonderful Christian man.

When I started working here our company was owned by another parent company (APV) but when the contract was written to sell this company to APV, there was a condition that left the door open to buy the company back after a specified number of years. In 2000 the terms of that contract came to fruition and part of the plan that our CEO had all along was that he wanted to make it possible for the employees to buy the company. To make that happen, in 2000 we employees were given an opportunity to invest to purchase the company through an Employee Stock Ownership Plan or ESOP.

I was one of those that served on the committee to make the ESOP a reality. Raising the funds to buy the company was made possible by IRS rules by allowing existing employees to make a one-time investment by rolling any portion of their existing 401K and/or former profit sharing account funds.

I chose to roll my profit sharing account and that decision has paid off well. I am now in a position to take an early retirement. I will be 60 in February, 2019. I have been milling this over in my mind and seeking God’s wisdom for the past couple years. Part of me feels a little selfish that I take advantage of this but I am now convinced that it would be more selfish to not retire because retiring will open a career opportunity for someone else.

So, now that I’ve babbled, let me get to the points of my thread. This is a great company to work for and I have no reservations or concerns about any negative response when I announce my intentions. I actually have a pretty close relationship with my current supervisor and department director.

I work in our aftermarket group (customer service) and I do know that my position will be a little difficult to fill. This is due to the electrical experience that I have gained over the years. Technology has advanced to the point that there are few of us left that were around when we were working with the older legacy technology.

With this in mind, I have two questions.

1. What is the appropriate or fair advanced notice for me to announce my impending retirement? I’m thinking 6 months but would like to know what others think.

2. Is there a proper way to do it? Should I do it in writing and hand deliver to my supervisor or to HR or both or what?

Thanks.
 
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#2
Since you trust them, why not talk it over with them, and ask how much time it would take to train a replacement? They might want to give you an apprentice now to train. You can give the official letters at the appropriate time later.
 

Knotical

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#3
I would think there is some conversations involved with HR and your supervisor. Some people do it a year out, some allow a much shorter period of time. It really depends on what your roles are and while kind of "hand-off" period you should allow to train up your replacement.
 
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It really depends on what your roles are and while kind of "hand-off" period you should allow to train up your replacement.
Yes, exactly. Your supervisor may have ideas on how long it will take to train. Could be an unofficial conversation. You can give official written notice to HR later.

People often give short notice when they don't trust their supervisors. Less chance of something going wrong. It all depends on how much you trust them. I never met them, so I don't know how they will react.
 
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JohnDB

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Actually...
Keep it a rather short notice time.
Anything over 2 weeks is bad. And there are a lot of reasons for this other than poor treatment by your employers.

However...
You can offer your services in highly special knowledge that you have on a consultant contractual basis. This allows those under you to fill your shoes and an opportunity for you to slowly retire but at a slower pace than suddenly.
It's a way that both parties can adjust to the new situation.
 

Papa Zoom

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I gave two years. lol Seriously. I started announcing my retirement two years before. But there's a lot of emotional reasons for that. I didn't want my students to hear about it on the last day. I wanted them to know that retiring is a natural part of life. I was just up at my old school today. Helping out with a clay project. I just retired last year. Everytime I return to either visit or sub, kids ask me why I had to retire and will I come back. I always say, "I am back right now. I'm visiting and I'll be back again to visit." :/ Working for a company that treats you well, and that you learn to love the people, well, that's family. 28 years is a long time to invest in a company anywhere. I was 28 years at my school. I had the kids of kids. It's special. And I loved that place and leaving wasn't easy.

I think when you tell them it all depends on relationships. I told as soon as I knew for sure. I knew for sure that when I turned 65, that would be it. And I knew that many would need time to process my leaving because like I said, we were/are like family. So my advice is to go with your heart. And end well. Sounds like you have been blessed.
 

JohnDB

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I gave two years. lol Seriously. I started announcing my retirement two years before. But there's a lot of emotional reasons for that. I didn't want my students to hear about it on the last day. I wanted them to know that retiring is a natural part of life. I was just up at my old school today. Helping out with a clay project. I just retired last year. Everytime I return to either visit or sub, kids ask me why I had to retire and will I come back. I always say, "I am back right now. I'm visiting and I'll be back again to visit." :/ Working for a company that treats you well, and that you learn to love the people, well, that's family. 28 years is a long time to invest in a company anywhere. I was 28 years at my school. I had the kids of kids. It's special. And I loved that place and leaving wasn't easy.

I think when you tell them it all depends on relationships. I told as soon as I knew for sure. I knew for sure that when I turned 65, that would be it. And I knew that many would need time to process my leaving because like I said, we were/are like family. So my advice is to go with your heart. And end well. Sounds like you have been blessed.
A school is a lot different than a private sales company.
Not a lot of competition except between children.
Customers don't react well to a retiring company contact. So they always hear that you are "two years away from retirement".

Then I would start to roll over stock to a more diversified portfolio immediately. Single stock investment for any portfolio is extremely high risk. Holding a large percentage of any company (even if you work there) is a huge risk with your life savings...sure that investment has paid off and you can retire early to do other things...but to keep all your retirement there is a bad idea. Asset allocation across various markets in different sectors of the market is going to work out well for preserving your retirement funds.

Mutual funds in such things as real estate, growth, and growth& equity, and a few blue Chip funds will keep you plenty busy.

Also spreading the money across several investment firms is a good idea as well. (Remember E.F. Hutton...word has it that a couple of others are on the brink)
FDIC is broke... so be careful. Only $250K per account.
Tax free municipal bonds will be pretty good as well. (Unless it's Detroit or California)

Then once you semi-retire you can go on trips with the wife... tell the kids that the "Bank of Dad" is closed due to retirement.
Read IBD, Morningstar 500, and WSJ while figuring out where your retirement home is going to be located at or what time the guys are going to meet at Panera bread.
 

Razeontherock

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Congratulations are in order to WIP! This is a great testimony to the goodness of God.
It's also something our government did right, allowing an ESOP. This is the stuff that "made America great" in the first place; not government, but good hearted people doing good work to the best of their ability.

I know that's not why you started this thread, but it's important stuff. I have absolutely no advice for you Sir. You've gotten a huge range of advice to consider, and all of it has relevance in the right situation.
 
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#10
1. What is the appropriate or fair advanced notice for me to announce my impending retirement? I’m thinking 6 months but would like to know what others think.
2. Is there a proper way to do it? Should I do it in writing and hand deliver to my supervisor or to HR or both or what?
1- Ask your employer how much notice he'd like.
2- Then put the finalised date in writing to make it official.
Then enjoy yourself, I can honestly say I've never been happier since retiring several years ago..:)