bigpoppa
Well-known member
I sense a bike #3
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So.....recession time!?
- Thread starter mimico_polak
- Start date
need a proper house first. garage > dreams
A friends wife was a bank manager and quit, moving to another bank when she got a lousy raise. They couldn't find a little more to keep her but ended up paying a lot to get her back.
The question of loyalty comes in but people forget it's two way street.
The person determining the raise has to gamble / bluff the right number.
Kids become the owners and then @Evoex takes over day to day operation for people that either have no idea and don’t care, or will sell the business at the first opportunity.
Mad Mike
Well-known member
That's very common in banking. Banks pay and benefits are not typically tied to performance, mostly tenure so you'll find a young bank manager performing at a very high level but making 20% less than an old codger running on cruise control. Banks also value diversity, not just in gender and race, but also experience - a young bank manager hired away from another bank could make more than that old codger.
Almost all roles in a bank are highly proceduralized, there isn't much room for decision making even near the top - they run off a procedure manual and annual playbook. Great places if you like or need to be governed by procedures, not so great if you're creative, innovative, or someone with damn-the-torpedoes initiative.
Indeed.
I expect to have a very long and frank discussion about not only expectations but job security. I have enough years in my industry to come back to a job if I needed one, but it’s not a choice I want to deal with as I get older.
I would just ask how much it's going to cost to buy (if you're interested), and basically buy out the family over time.
It's a lot more work obviously, but could be a good way to take over a (I assume) good business.
A friend in a big bank has done really well with employee stock purchase plans. He is substantially overweight in bank stock but they match stock purchases up to xx% of salary. That added up to almost seven figures in <15 years.
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My understanding is there is a silent partner. So all kinds of potential unknown nuances.
Interesting idea. Wonder what my wife would think.
My old company that reached out has an employee share purchase plan. Apparently they pay out like 30% dividends or something like that. It's enough to pay off the very low interest loan they help you get to buy the shares.
That would help sway me.
That would help sway me.
I doubt I would work for the kids. Especially if they aren't interested in the business. I've seen that happen too many times before and it ends poorly. I would negotiate with current owner to take over and buy out the business over x years. Kids are hands off and get their money, Evo is free to do as he wants with security and a valuable asset at the end. Get a proper valuation. Many business owners become methheads when valuing their business. I know it has taken time and work to get here but many dig their heels in a a valuation that is more than double fair market value and then they can't find a buyer. They convince themselves that is because others aren't properly valuing their business and will not accept that they are on crack.
Mad Mike
Well-known member
You can still get an excellent pension. I had to cash out of a defined benefit pension when I left the bank -- I was there 6 years and the cashout was $110K. Had I stayed 14 years (to age 65) it would have kicked out $4.1K/mo. Had I worked there 30 years, about $8K/mo.
I need to look into what I’d be able to pull from my OMERS contributions if I leave.
Old company had about 100k in the plan, thank you FIFO, but I left it there as it was doing very well. Will check balance this month to see what’s what and whether to pull into a self-directed LIRA.
My Brothers inlaws had a pretty successful electrical business with a very lucrative service contact for electric hoists and small cranes , Canada Packers / Schnieders were customers . FIL wanted him to take over the business as BIL ( an electrician ) couldn't get along with family.
short version FIL gets cancer, BIL comes back into the business. In 5 yrs, all contacts cancelled due to service issues, gone from 5 vans on the road and 8 guys to zero. Building gets sold , had two rental tenants and still loosing money, on a paid off building. House on property that was formerly a rental gets BIL as tenant.
Some alcohol involved.
Very clear expectations need to be mapped out. And everything needs to be on paper, that handshake stuff went away decades ago.
short version FIL gets cancer, BIL comes back into the business. In 5 yrs, all contacts cancelled due to service issues, gone from 5 vans on the road and 8 guys to zero. Building gets sold , had two rental tenants and still loosing money, on a paid off building. House on property that was formerly a rental gets BIL as tenant.
Some alcohol involved.
Very clear expectations need to be mapped out. And everything needs to be on paper, that handshake stuff went away decades ago.
Mad Mike
Well-known member
That would scare the crap out of me! Family businesses are usually successful because a sole owner drives the decision-making and customer relationships. In most cases, it's an iron-fisted setup, where the owner makes all the decisions on the things that can make or break the company.
Meddling children, their spouses, their role in the company can be incredibly challenging to manage, often overwhelming for the hired GM.
Hero to zero time can be measured in minutes if a family member becomes an obstacle. Ask the Ted Rogers clan.
This is the most important part. Especially going over the finances.
Have seen MANY business owners throw family car leases, rents, mortgages, and whatever else they can cram into the business expenses.
Owner has kids, kids and wife drive brand new BMW/MB. Owner's wife purchased a brand new MB sight unseen. Sat in it, hated it, traded it in within 12hrs for a new one.
I've been through three downturns in my life.
Graduated university during the recession of the early 90s. Despite 2 years of co-op working experience, the only job I could find was over an hour's drive away and making peanuts. I made more as a student than I did when I graduated. Living hand-to-mouth meant no way I could afford a house.
Couldn't afford to buy a place for many years until the economy picked up. Went on every job interview I could apply for till I got a job that paid enough to save for a down-payment. My first mortgage was double digits.
Went on more interviews and landed a DotCom job and paid down the mortgage aggressively, while saving and investing. And then 2001 rolls around and I lost my entire life savings in the DotCom market crash, and my company announced a 50% Reduction In Force. I was fortunate to keep my job, but I had to work twice as hard to pick up the slack from the 50% that did get let go. Plus worry that the company would go under anyway, and I'd be stuck with an oppressive mortgage payment schedule with no income.
I didn't sleep much during that time.
Climbed back out again from that only to have my knees kicked out from under me yet again during the Great Financial Crisis of 2008. 50% haircut this time round. My company asked all its employees whether they would prefer a 33% RIF or a reduction in salary. No brainer, everyone took a salary cut, so once again, everyone was living lean during those times, while worrying that all these austerity measures would result in a layoff anyway.
Every generation faces its challenges. Back then it was high unemployment and high interest rates. These days it's high housing costs and stagnant wages. We've all struggled in some form or another.
Is there a recession coming? My Spidey-sense says yes.
Graduated university during the recession of the early 90s. Despite 2 years of co-op working experience, the only job I could find was over an hour's drive away and making peanuts. I made more as a student than I did when I graduated. Living hand-to-mouth meant no way I could afford a house.
Couldn't afford to buy a place for many years until the economy picked up. Went on every job interview I could apply for till I got a job that paid enough to save for a down-payment. My first mortgage was double digits.
Went on more interviews and landed a DotCom job and paid down the mortgage aggressively, while saving and investing. And then 2001 rolls around and I lost my entire life savings in the DotCom market crash, and my company announced a 50% Reduction In Force. I was fortunate to keep my job, but I had to work twice as hard to pick up the slack from the 50% that did get let go. Plus worry that the company would go under anyway, and I'd be stuck with an oppressive mortgage payment schedule with no income.
I didn't sleep much during that time.
Climbed back out again from that only to have my knees kicked out from under me yet again during the Great Financial Crisis of 2008. 50% haircut this time round. My company asked all its employees whether they would prefer a 33% RIF or a reduction in salary. No brainer, everyone took a salary cut, so once again, everyone was living lean during those times, while worrying that all these austerity measures would result in a layoff anyway.
Every generation faces its challenges. Back then it was high unemployment and high interest rates. These days it's high housing costs and stagnant wages. We've all struggled in some form or another.
Is there a recession coming? My Spidey-sense says yes.
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