Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 16 of 16 Posts

·
Registered
Joined
·
25 Posts
Discussion Starter · #1 ·
Hey guys, I always find this is a really helpful forum. Let me know if you need more back info. This is a long post.

My old man is a home renovator and is set up with equipment truck materials storage etc etc.

Long story short = he has no savings and no retirement savings. All costs go out the door to bills the mortgage etc and to my mum for her expenses.

He is 58 next year 59.. he can’t do a lot of the physical aspect anymore, I also work with him as a carpenter and general hand on field.

What advice would you give me for these questions:

1) how do I support him financially? Weekly allowance? Pay his bills as well? Get more work?

2) how do I help him shift off the tools/foreman type role into an office based one.. we aren’t that big we are a two man crew so I don’t know what he can do in the office other than a few hrs a week. he is a bit stubborn about it as it’s all he has ever known for work, what did you do if you are retired or what advice can you give me on this? I have tried expanding but he says we can’t keep up but I want fo use trades to help us but then quality control goes to sht?

3) is there a method to make us both hands off and just organise/supervise jobs (we have a contractors licence for remodels) and can work with unlimited dollar value contracts so long as they are remodelling work. Can someone recommend a tried and tested method other than constantly chasing my tail on quality of trades work and putting out fires/keeping customers happy and doing office work and tool work?

4) any ideas what to do with rolling lockdowns, I’m based in Melbourne Australia and the industry gets shut down every time there is a COVID outbreak for about a month! What do we do while our job stops? Should we market ourselves more for upcoming work or start a second business online somehow?

Too long didn’t read - how do I make my dad retire with money and not go broke (both of us)

If you read this thank you


Sent from my iPhone using Tapatalk
 

·
Registered
Remodel
Joined
·
31,175 Posts
Pretty tough situation.

First things first, he shouldn't retire from something he should retire to something.

The rest is a complicated mix of business and personal finance
 

·
Capra Aegagrus
Remodeler
Joined
·
25,229 Posts
This is a situation many aging tradesmen find themselves faced with.

If Dad's never been an office type, relegating him to that is likely to be a hard sell--not to mention whether he'd be any good at it. Have you sat down with him for a serious heart-to-heart over the matter? There's only so much you can do to help him out if he's unwilling to accept it.

If you want to expand, and it sounds as though you need to, then you basically have two routes: employees or subcontractors. Neither comes without headaches. Either option means less time on the tools and more time playing politician and putting out fires. Are you up for that?

As for rolling lockdowns, there's really no good solution for that other than having enough money in the bank to weather them. Or just moving to a set of skills that are considered essential and thus relatively unaffected.
 

·
Registered
Remodel
Joined
·
31,175 Posts
Rolling lockdowns you can start a side business. Small things you can build at your place and deliver, maybe.

Slow times are times to get ready for good times. Work on your growth strategy for your your main business. Look at streamlining and improving all your business processes. Reorganize your tools and shop.

Want to make more money? Charging more may do that.
 

·
Registered
Custom
Joined
·
13,693 Posts
Your heart seems in the right place, but you're all over the place... First, it was you wanted to grow, then you couldn't work with your Dad because he thought you were soft and then were going to work for someone else at a low wage (guess that didn't work out) and now you're trying to solve your Dad's financial issues going into retirement while at the same time back to trying to figure out how to grow and manage a business... you'd be better off getting things sorted out personally career wise before attempting to help your Dad...

I only say this, because if your priorities are divided and not focused, the likelihood of making headway on any of them in any meaningful way will be that much harder...

Put simply, if your Dad doesn't have any money left over after expenses, then you aren't charging enough not only for him to establish any savings for retirement but you as well, not to mention establishing 3-6 months of Capital Reserves, Emergency Fund and Equipment Fund for your business that you will need for growth whether you go the employee or sub route...

I'd encourage you to come to a meeting of the minds with your Dad on what strategy you will FOCUS on going forward, establish a pricing structure that takes into account ALL your needs so you can charge what YOU and your Dad actualy truly need to charge to be in business, and that includes taking into account the rolling lockdowns, which emphasizes the importance of Capital Reserves, Emergency Fund, etc...

Once the two of you sort those two financial infrastucture and business support issues out, FOCUS on them like a laser beam in achieving those goals you need to... all of that includes retirement accounts for both of you...

As to his personal finances, that's a whole other issue... how many years left on mortgage? Any other consumer debt (i.e. - car loans, credit cards, personal loans, etc.)?

Those are the things that can boost retirement savings once paid off... He has to look at the financial goal in retirement and work backwards to establish a plan to get there....
 

·
Registered
Joined
·
936 Posts
Pretty difficult to give sound advice without knowing the entire situation and NO money. Sorry to hear about your dad. And, thanks for you reaching out to CT for assistance. Good luck.
 

·
Registered
Joined
·
15 Posts
Your old man might be eligible for government benefits (age pension, concession cards, etc.). Research on those and you might find retirement options that are suitable for your current situation.
 

·
Registered
Joined
·
857 Posts
Sad truth is, if your Dad has been in business for a long time and has no savings or retirement plan, still carrying a mortgage, etc. you really don't want him involved in any aspect of managing a business you are tied to. You probably need to take control of the business, and / or get away from him and do your own thing.

Nothing wrong with doing what you can to take care of family, so giving him some type of token job and a paycheck for it would be awesome if your business can afford it.
 

·
Registered
Joined
·
25 Posts
Discussion Starter · #12 ·
Sad truth is, if your Dad has been in business for a long time and has no savings or retirement plan, still carrying a mortgage, etc. you really don't want him involved in any aspect of managing a business you are tied to. You probably need to take control of the business, and / or get away from him and do your own thing.

Nothing wrong with doing what you can to take care of family, so giving him some type of token job and a paycheck for it would be awesome if your business can afford it.
Some times I think about this.. do you think this is the right path? Any one agree on this one
 

·
Registered
Demo
Joined
·
860 Posts
Sad truth is, if your Dad has been in business for a long time and has no savings or retirement plan, still carrying a mortgage, etc. you really don't want him involved in any aspect of managing a business you are tied to. You probably need to take control of the business, and / or get away from him and do your own thing.

Nothing wrong with doing what you can to take care of family, so giving him some type of token job and a paycheck for it would be awesome if your business can afford it.
Some times I think about this.. do you think this is the right path? Any one agree on this one
I agree with Fishindude. As was mentioned above, he’s at that age where he’s probably looking to retire. If he can’t retire, the next best thing you can do for him is get him some paying work to do.

You could employ him, or sub out stuff to him. Whatever structure make sense. The business stuff, I think you need to take care of you first or there will be nothing for either of you.

It’s like those masks that deploy on planes in the event of cabin pressure loss. You gotta put yours on, first, before you help someone else.
 

·
Registered
Joined
·
50 Posts
Some times I think about this.. do you think this is the right path? Any one agree on this one
I'm not really qualified to speak to the business side of things, but it depends to some extent on what your dad wants. I used to work in a boatyard, and there was a 103-year-old man who would show up in khakis, collared shirt, and a vest in the middle of summer, set up a wooden ladder that had to be 30+ years old, climb right up, and start getting his wooden sailboat ready to launch. Wouldn't let anyone else do it, never wanted anybody to help him. Moved around better than a lot of 50-something guys I know. If your dad is like that, he's not gonna take kindly to being sorta pushed to the side, no matter how gently you phrase it
 

·
Registered
Joined
·
120 Posts
Trying to move a long time field person into the office is difficult. It's a different skill set.

Maybe you consider getting an attorney/financial planner/accountant involved. Sometimes an independent 3rd party can bring a new idea to the table. Yes, this means your father has to be receptive to listening. The problem with "selling" the company is most companies don't really have any significant assets except cash in the bank. Yes, there is a value to the company name, but how much is it worth? Can the business support some kind of payment? My guess is no.
 

·
Registered
Joined
·
5 Posts
This problem requires a comprehensive solution. First, if he likes his job, then let him do it. Hire more workers. Expand your business. Yes, you will make less profit, because part of that profit will be the employee's salary. I also recommend that you do some research into the field of investment. If you say your old man doesn't have retirement savings, then you need to make them yourself. I recently bought shares in Robinhood ($38 a share), now the value of 1 share is $70. Also, there are less risky companies, like AT&T, which pays an annual dividend of 7.40% or Western Union, they pay 4% per year.
 
1 - 16 of 16 Posts
Top