Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I'm About to Leave the Mega corp at 49
Old 09-02-2015, 07:50 PM   #1
Confused about dryer sheets
 
Join Date: Jul 2015
Posts: 6
I'm About to Leave the Mega corp at 49

I work for a Mega Corp. I am 49 years old and I have worked their for 27 years. I will leave with about 900k in 401k and cash balance from Pension. I should also get 150k in severance and un-used vacation. My husband is retired and has Medical benefits and a pension. The company is changing and after many years of giving up what feels like everything, for a 60+ hour workweek and Travel, I want to try something new. I know I will not make the money I make today. I am worried that things are changing so much at my company that the generous severance packages will be gone soon, so I quietly volunteered for the next round of Layoffs which happen 3-4 times a year at this point. I'm scared but it feels right. I always said when I did not care any more I would leave and I am just about there. I know I will have to work, but I am going to try to work less. Perhaps part time for as log as I can and then maybe tap into a 72T if needed. My husband has a pension. We have 2 kids to put through college ages 12 and 14. I do have some money saved for college, but not nearly enough. I really never carry a lot of debt. I do have a mortgage but it is manageable. I changed it to a 30 year about 3 years ago when I was thinking that my company may be sold or I may be forced out and wanted to reduce the payments, just in case. I have a lot of equity in my home and will downsize eventually. Right now my parents still live with me in an in-law. I am not exactly where I wanted to be financially, but I am close. I know that we spend way more than is needed and I feel like if we cut back we can make it, but I am so scared. Any advice for me as I take the leap?
__________________

__________________
jojo777 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-02-2015, 09:55 PM   #2
Full time employment: Posting here.
Markola's Avatar
 
Join Date: Nov 2013
Posts: 545
Jojo, It sounds like you have the long term finances nailed well but the short term, day to day budget management needs some attention in light of your salary getting reduced, and your middle term goals like college. I realized a few years ago that we had both long term retirement savings assured but short term was another story, with some line of credit debt from a move not budging as I thought it should. Motivated by that pain, I resolved to take some action to get the short term money equally tamed. I was fortunate to find www.ynab.com and I really got into using that program and crushing our waste. I have no affiliation with them. In about 2 months of use, I identified so much leakage and low value spending in our life that I melted away a third of our expenses without my wife even noticing. I've kept on whacking waste and she is noticing now, and laughs at my diligence, but she is also very supportive. There is so much courage for these situations that flows from just being in control, not to mention excess financial capacity to absorb life changes. Maybe you already budget well and I'm mistaken. Regardless, good luck!


Sent from my iPad using Early Retirement Forum
__________________

__________________
Markola is offline   Reply With Quote
Old 09-02-2015, 09:58 PM   #3
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,584
Only you know your budget and the amount you need to live on and have some fun as well. I can understand the desire for something different. If you can keep the pension instead of cashing it out lump sum it may have better financial health once you take the pension. Can you start taking it anytime or is there a min age to start?

New P/T job is nice if you can find it and it provides what you need as far as income. That should keep you from a money crunch, and enable the 401k to continue to grow without any withdrawals; until you stop working and begin full retirement.

I think everyone has a bit of fear making the jump into retirement and not having the steady paycheck income. Some more than others, a lot depends on the ultimate withdrawal rate and risk tolerance. The key is understanding your financial picture and having confidence in your choices to provide sustainable income from your portfolio.

Maybe take some of that severance and put into 529 or similar college accounts? That would ease your pressure to save for that with the reduced P/T income.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is online now   Reply With Quote
Old 09-03-2015, 01:26 PM   #4
Recycles dryer sheets
robertf57's Avatar
 
Join Date: Jun 2014
Posts: 329
I think given your circumstances, you should concentrate on your own financial well being and not your kids college education. There are grants and loans and community college for the first couple of years that will help you kids when the time comes. You really need to make sure the family as a whole is in good shape first.
__________________
robertf57 is offline   Reply With Quote
Old 09-03-2015, 01:55 PM   #5
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,098
Quote:
Originally Posted by robertf57 View Post
I think given your circumstances, you should concentrate on your own financial well being and not your kids college education. There are grants and loans and community college for the first couple of years that will help you kids when the time comes. You really need to make sure the family as a whole is in good shape first.
agreed - plus they can always go to a service academy for free
__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 09-03-2015, 02:02 PM   #6
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,465
Quote:
Originally Posted by Big_Hitter View Post
agreed - plus they can always go to a service academy for free
Service Academies are not free. There is no tuition, but graduates pay with their active duty military service.
__________________
MichaelB is offline   Reply With Quote
Old 09-03-2015, 02:11 PM   #7
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,098
Quote:
Originally Posted by MichaelB View Post
Service Academies are not free. There is no tuition, but graduates pay with their active duty military service.
plus you get paid while you go there - AFA recruited me heavily out of HS
__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 09-03-2015, 02:12 PM   #8
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,116
Quote:
Originally Posted by MichaelB View Post
Service Academies are not free. There is no tuition, but graduates pay with their active duty military service.
+1

And since that active duty involves the very real possibility of going in harm's way, the cost can be beyond measure.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-03-2015, 02:47 PM   #9
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,055
Quote:
Originally Posted by MichaelB View Post
Service Academies are not free. There is no tuition, but graduates pay with their active duty military service.
Quote:
Originally Posted by REWahoo View Post
And since that active duty involves the very real possibility of going in harm's way, the cost can be beyond measure.
Unfortunately, freedom is not free either...

My nephew just graduated from the USAF academy. He also got a scholarship to Walter Reed medical center, where the USAF will train him to be a doctor, in exchange for 9 total years.

While he is going to medical school, he will be paid ~60K a year, and have all tuition and books paid for. Probably a $250K+ benefit.

And, he was allowed to train for the Olympics, and will take time off to compete in 2016, assuming he makes the cut.

I also saw a guy on SharkTank that had an app that got him $1.3M in scholarships. The app finds unused scholarships. The Sharks wanted to buy in.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 09-03-2015, 05:24 PM   #10
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,147
Quote:
Originally Posted by Big_Hitter View Post
plus you get paid while you go there - AFA recruited me heavily out of HS
I take it they were not successful in snagging you.

When I was looking for a college back in 1976, the only two to which I applied were USAFA and USNA (my college had to be free or there was no way I could attend). I chose Navy. It was a very good education but a very difficult atmosphere (the old saw was they they gave us a $200k education, rammed down our throats a nickel at a time). In fact, so difficult that one third of my class quit before graduation. For the right sort of person, with the necessary discipline and perseverance, it is a good way to get started in the world. I am certainly grateful for the start it gave me.

But then there is that 5 year commitment after you graduate. Mine involved cramming myself in a dank, dark metal tube and going without sunlight, fresh food or fresh air for months at a time (I was a submariner). Again, it's not for everyone.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 09-03-2015, 05:29 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,718
Quote:
Originally Posted by MichaelB View Post
Service Academies are not free. There is no tuition, but graduates pay with their active duty military service.
Note that service academies include the Merchant Marine Academy (navy reserve). Also if you enlist you now get under the post 9/11 GI bill 36 months of education support.
__________________
meierlde is online now   Reply With Quote
Old 09-03-2015, 09:09 PM   #12
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,158
Jojo, many here have found that once they retire, they find many ways to save money that they didn't have time for while w*rking. Also your kids are old enough to be part of the solution - they can be earning their spending money and some to save for college. Think babysitting, lawn mowing, refereeing younger kids sports leagues, etc. You might also look into taking a class such as Financial Peace University which focuses on LBYM and staying out of debt.

Hope we can be helpful to you here!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 09-04-2015, 11:54 AM   #13
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,098
Quote:
Originally Posted by Gumby View Post
I take it they were not successful in snagging you.
No they didn't. This was in the early 80s when AFA had a nationally ranked football team. I was too big to be a pilot so I'd have to be a navigator or something else. At that age the seemingly "long" military commitment scared me. Now that I'm older I know 4 years is a drop in the bucket.

I ended up taking a full ride football scholly at a state college then quitting and going to a local public school.

Things worked out - hey I'm on this forum aren't I?
__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 09-04-2015, 11:43 PM   #14
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by Gumby View Post
When I was looking for a college back in 1976, the only two to which I applied were USAFA and USNA (my college had to be free or there was no way I could attend). I chose Navy. It was a very good education but a very difficult atmosphere (the old saw was they they gave us a $200k education, rammed down our throats a nickel at a time).
Hunh. I remember a version of that saying which referenced a different orifice...

Quote:
Originally Posted by Gumby View Post
But then there is that 5 year commitment after you graduate.
Our daughter is 15 months into her five-year active-duty commitment. (She's also committed to another three years in some form of the Reserves.) Most of the fun has stopped. Admittedly she's in that final stretch requiring a burst of hard effort to get qualified, but she's still hating life.

Suddenly all of Mom & Dad's sea stories have taken on new relevance. She's also appreciating the wisdom of a high savings rate for financial independence... although when your OPTEMPO exceeds 50%, you're not going to find many ways to spend it anyhow.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 09-05-2015, 07:16 AM   #15
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,147
Quote:
Originally Posted by Nords View Post
Hunh. I remember a version of that saying which referenced a different orifice...
You are correct, but I was using the family friendly version.

Quote:
She's also appreciating the wisdom of a high savings rate for financial independence... although when your OPTEMPO exceeds 50%, you're not going to find many ways to spend it anyhow.
Being underway all the time, and consequently being unable to spend, was a large factor in helping me save enough to pay for law school.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 09-05-2015, 06:59 PM   #16
Dryer sheet aficionado
Sycamore's Avatar
 
Join Date: Feb 2012
Posts: 48
jojo,

Depending on where you live some large state universities have satellite campuses or affiliations with a community college. If your children attend the satellite or community college for two years, then transfer to the state university, the total four year cost can be significantly lower compared with attending all four years at the state school.
__________________
Sycamore is offline   Reply With Quote
Old 09-06-2015, 01:44 PM   #17
Recycles dryer sheets
 
Join Date: Sep 2008
Posts: 353
I did the same thing 2 yrs ago at 51 with 30 yrs. Just a heads up. The "150k in severance" is taxed like a bonus. I had to take mine in Aug. If you can somehow put it off till Jan you will save thousands in Tax's. My old company also would not say if the severance would change going forward, coaxing folks to take it. Then everyone got the same thing anyway. It was a strategy to get folks to leave on their own. And worked pretty well for them.


Do you have to take the pension when you leave? I left mine with the co as it pays almost 5%.
(I am the only one I know that didn't roll the cash ball. pension over into an IRA)
And I have no regrets.
Mine has an annuity option as well. Your situation sounds similar. Mine got neutered in the 90's.
Is about $275k today or 1270 / mo. 100% Contingent Annuity.
But does go up about $1000.00 per month (cash balance) / or an xtra $100.00 per month / yr. on its own.
Just wanted to point that out.


Also, I still enjoy making money. There is no law that says you have to stop 100% and retire.
At my age I would get board. Still feel like I always have. But now there are options. Make money part time from home. Take a 1-2 month job. etc. Way more fun than being on the hamster wheel. Its actually enjoyable! (some may not agree though)'


My kids are now 27 & 28. I put them both through 4 yr state schools. If I had to do it again it would be a JC for the 1st 2 yrs. Just my 2
__________________
almost there is offline   Reply With Quote
Old 09-23-2015, 08:35 PM   #18
Confused about dryer sheets
 
Join Date: Jul 2015
Posts: 6
Thanks to all

Almost There-They stopped our pension back in 2007 so the monthly option is not good, the cash is much better for me. The only thing that impacts my pension is the GATT rate, PBGC rate and 10 year bond rate. I can leave the pension and watch those rates for a bit. For example, had I gone in June with the last layoff, I would have left with 50k more due to GATT and PBGC rates. I figure as long as the pension piece sits there its really not making me any money. I wish I was getting 5%! I'm hoping to leave at the end of 2015 now so there is a slim chance that the severance is going to move to 2016, but not dates yet. Just so ready to go on and figure out the rest of my life. I can also collect unemployment for 6 mos. to a year which will help me to determine what I want to do next.

I really need to just tighten up the spending. I've learned some great stuff here so far-Thansks to all

My kids already know they need to go to state schools and take some loans. I will help as much as I can. I am so grateful that my husband has health insurance. I would not be eligible for my health insurance until age 55 and only at 50%. His is around 450 a month for a family of 4 so, pretty good deal. I plan to work, just not like a dog.
__________________
jojo777 is offline   Reply With Quote
Old 09-24-2015, 03:12 AM   #19
Recycles dryer sheets
 
Join Date: Sep 2008
Posts: 353
If you can, use Vac. sick time anything you can to push it out to the beginning of the year.
If at all possible. Talk to your tax person if it would help. Its a big deal tax wise.
__________________
almost there is offline   Reply With Quote
Old 09-24-2015, 10:35 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,050
The only consolation is no Social Security tax above $118,500 if you get severance and this year's salary together.
__________________

__________________
jim584672 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Good Bye Mega-Corp jazz4cash Young Dreamers 10 10-07-2007 10:48 PM
How much are withheld taxes on a mega-corp pension? omni550 FIRE and Money 6 04-15-2007 02:39 PM
Mega Corp blocks forum... Texas Proud Other topics 11 09-21-2006 11:46 AM
Working for a Mega Corp sounds interesting, am I nuts? saluki9 Young Dreamers 45 07-03-2006 11:59 AM
Retire from mega corp america MattInAustin Life after FIRE 41 02-06-2005 06:30 AM

 

 
All times are GMT -6. The time now is 05:45 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.