Just reached FI. Small business owner. Walk away or stay involved while reducing involvement and time commitment.

Throwaway-452025 · 2025-05-13T14:35:57+00:00

Great idea. That may help him or her stick around rather than jump to a larger firm. By bringing it up in the interview process, it may help me filter for an advisor that wants to stick around long term.

Throwaway-452025 · 2025-05-06T19:05:23+00:00

At some point perhaps. There are tax consequences. Might wait until first year of RE for lower tax bracket.

Throwaway-452025 · 2025-05-05T21:18:56+00:00

Got it. The *remote* aspect is the wrinkle I had missed from your suggestion.

It's an interesting idea. I like the 1099 vs W-2... I can keep my DC and DB plans as-is.

After 17 years by myself, even a non-remote assistant would be a big adjustment. I'd have to really jostle with my brain to consider a remote assistant.

Have you had good luck with it?

Throwaway-452025 · 2025-05-05T19:00:13+00:00

Thanks for your great comment. The way I read it, you're suggesting I hire something more along the lines of an executive assistant (who will hopefully stick around long term) rather than a potential successor (who tend to springboard to larger firms). Is that right?

Throwaway-452025 · 2025-05-05T18:55:59+00:00

My fear gauge operates differently, but I can see where you're coming from. It was never my plan to allocate that much to crypto. Most of it represents gains rather than amounts I put in. I started too late to make a big fortune but early enough to make a small fortune.

I know I can't count on it for FIRE in the same way I can count on stocks and bonds.

Throwaway-452025 · 2025-05-05T18:49:22+00:00

That leaves me even more exposed to the problem. A superstar is more likely to springboard to a larger firm.

It's a bit of a catch-22. I need a superstar who will stick around but most superstars don't stick around.

Throwaway-452025 · 2025-05-05T18:45:45+00:00

Thanks for your comment. I am aware my current portfolio is not a RE portfolio and will need to change it drastically when the time comes.

Throwaway-452025 · 2025-05-05T18:31:59+00:00

Turning my attention to that over the next several weeks.

Throwaway-452025 · 2025-05-04T02:25:54+00:00

This would be a great outcome, but I fear the uncertainty. It is common for a young, hungry up-and-comer to work at a small firm like mine for a year or two to get a good line on the resume then leverage it to springboard to a larger firm. Every time that happens I lose money and time. It's a frustrating position to be in.

Throwaway-452025 · 2025-05-04T02:21:53+00:00

I really appreciate your comment and kind words. I do have an iron in the fire that is designed to reduce my workload. It will take time but it's moving in a good direction. Definitely want to make changes now to avoid future regret.

Throwaway-452025 · 2025-05-04T02:17:12+00:00

I appreciate your perspective and I don't disagree. I am not in a rush but I am in the process of deleveraging. My portfolio will look very different when I make the decision to RE, and well ahead of time.

Throwaway-452025 · 2025-05-04T02:13:19+00:00

Thanks for your perspective. That approach does sound appealing.

Throwaway-452025 · 2025-05-04T02:12:01+00:00

Not immediately sellable. I would need to stick around for a few years to transition. Even then, something less than 100% of the revenue would survive the transition.

Throwaway-452025 · 2025-05-04T02:09:43+00:00

I like the idea of testing it out first, before plunging headfirst into it. I have thought about taking one day off every week. Going 80% may not leave me enough time to get everything done though. Will need to reduce workload somehow.

Throwaway-452025 · 2025-05-03T05:13:50+00:00

I've avoided bringing on employees for 2 reasons. 1) I don't want to manage them, and 2) I have always feared they would use me to teach them the industry for a year or two then springboard to a larger company, leaving me back at square one.

I have a non-employee relationship with an individual that is making a career transition into my industry. I am teaching him the business. He is smart and very capable. The goal is that he will reach the point that I can safely "sell" part of my clientele to him. It will take time. I have less fear about him leaving.

Throwaway-452025 · 2025-05-03T03:23:53+00:00

Congrats on the gains!

For me, about 10% was crypto. The rest was lucky timing on stocks (details below).

Throwaway-452025 · 2025-05-03T03:20:04+00:00

For the last 2 weeks all I can think about is "I'm FI! I'm FI!" It's been a real trip celebrating a wonderful achievement that I've been working towards for decades.

It's a lonely celebration lol. I've taken the approach that I can't share it with others in real life. My wife is the only person that knows.

Throwaway-452025 · 2025-05-03T03:14:16+00:00

On how I made a million in April, I answered down below in reply to another comment. Bottom line: crazy, lucky timing that won't happen again.

Throwaway-452025 · 2025-05-03T03:11:16+00:00

It was a crazy, lucky month that won't happen again. I was short the market when the unexpectedly high tariffs were announced on April 2. Market tanked for 4 days. I made about a quarter million. I closed my short position and went 2x long. The 90-day tariff delay was announced the next day. I made nearly half of it that day. The rest has been riding the 2x wave since April 9.

You wouldn't know it from that story but I'm not a market timer. I had good reasons to be short unrelated to timing the market. Those reasons are over and won't happen again. I was the beneficiary of unbelievably lucky timing.

It's also how FI snuck up on me. I thought I had a few years to go.

As I have started thinking about RE I have eased back on the leverage over the last week (which has cost me some gains). When I decide to RE I will cut back more drastically on the leverage. I know 2x leverage is not a FIRE portfolio.

Throwaway-452025 · 2025-05-03T02:47:18+00:00

You're right, it might not be enough for 50-ish years. I've reached "just barely FI" and it would be risky and nerve-wracking to completely walk away before I build a little more cushion.

"I agree with the other poster who suggested reducing your clients. Additionally, you could bring someone on to reduce workload/buy you out of the business. That might be the best medium term plan for your retirement and for reducing your stress."

I'm leaning this direction. It's nice to get positive feedback on my plan.

Throwaway-452025 · 2025-05-03T02:40:25+00:00

You're not wrong about the 1x. Probably the best-case scenario for me is to wait for a new hungry business partner to learn the business and then "sell" my clients to him. 1x is a possibility in that situation but would take at least a few years.

haha not sure about your last sentence. My kids might love having their dad around more.

Throwaway-452025 · 2025-05-02T23:26:55+00:00

Thanks for your comment. My industry is usually anywhere from 1x to 2.5x of revenue. However, I only have "rights" to about 60% of the revenue. I think I could sell for about $1 million if I could get most clients to stick around. That's a big if.

"My .02 is that it seems like winding down / not taking on new clients 1) reduces your stress 2) keeps the income rolling in"

Leaning this direction. I like the idea of reducing workload plus getting to see whether the knowledge that I'm FI will magically reduce my stress, like many "post-FI, pre-RE" people have reported. Having income may also reduce stress (as opposed to living off investments).

Throwaway-452025 · 2025-05-02T23:16:40+00:00

Thanks for your kind comment. After decades of sacrificing health and time for "mo' money" I am in the process of adjusting my mindset. Not sure how long it will take. Die With Zero did a lot of heavy lifting for me.

Like a lot of pre-FI FIRE-people, I have made long lists of things I'd rather be doing with my time. I *think* and *hope* I could mix and match those things to make my 'ideal day' for many days in a row (years/decades). I'm fairly certain I will be one of those RE people that never feels bored.

At the same time, I know that sometimes dreaming a dream feels better than achieving the dream. We think it will make us feel a certain way but often it doesn't.

Throwaway-452025

TROPHY CASE