Game over. Out 3 yrs early.

A

almost there

Thinks s/he gets paid by the post
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Well, I just got word mega corp is shutting things down.
Looks like I will be out at 51 rather than 55 as I had planned.

No complaints. It was a good 30 yr run.

This post is to find out who I should contact 1st, as its not easy to know all the questions that need to be asked.
While I thought I knew all the ins and outs... there are a few things I am still finding out. Like the annuity option takes out un employment benefits where the lump sum does not.

I plan to get some hourly fee based help over the next few weeks just to make sure I don't miss anything. Probably have about a month to figure most everything out.

Plan to get with a CPA as well as a fee based planner / not an advisor. Mainly as a 2nd check as much as anything.

That's about it.
Wont be long now...............:dance:

This place has really helped me out through the yrs.
Just a quick thanks!
 
Congrats!
If you are considering getting any additional credit lines (cards, home equity line, etc.), do it now while you still have documented income stream. Credit can get more difficult (& expensive due to higher interest rates) after you retire.
 
Congratulations!

I know it seems inane but make a copy of your in-house contact list, you never know when those relationships will be important.

Attend all the transition training session your soon former employer provides. Even one idea has value.

Keep all the printed material they provide, it will have been well vetted by their attorneys so is likely correct.
 
See if there are published "as you leave" or "as you retire" documents on the Intranet. They will also give you ideas on who to speak to.
 
almost there said:
Well, I just got word mega corp is shutting things down.
Looks like I will be out at 51 rather than 55 as I had planned.

No complaints. It was a good 30 yr run.
....
Click to expand...
Sounds a little like what I was faced with 10 years ago. Since it happened unexpectedly it took me some years to fully adjust. I'm a very involved, happy camper nowadays. :)

It's good to take plenty of time with each decision. FWIW, I rolled my 401k to Vanguard and lumped most of our assets there. Did not seriously consider the annuity option. Moving to VG has been helpful in managing the portfolio.

Taxes could be a lot different for you this year so you might want to do some planning there with TurboTax or a qualified tax advisor.

Best of luck to you!
 
Lots of details to find out.......
Also now realizing there is no real rush in consolidating my Schwab PCRA 401k, lump sum pension that will continue to pay 4 1/2%, or my Vanguard Roth IRA's into a single IRA.
Most folks lump everything into one IRA right off the bat.
I just don't see the urgency all of a sudden. I can take my time
(as far as I know)

The Tax rate on the severance is huge........ Thinking about going exempt and paying in one check at the end of the year, rather than trying to get the money back from the IRS.

Thoughts?

Signed: There
 
Last edited:
ERhoosier said:
Congrats!
If you are considering getting any additional credit lines (cards, home equity line, etc.), do it now while you still have documented income stream. Credit can get more difficult (& expensive due to higher interest rates) after you retire.
Click to expand...

+1

At least there is no risk of OP falling victim to OMY syndrome.
 
almost there said:
Lots of details to find out.......
Also now realizing there is no real rush in consolidating my Schwab PCRA 401k, lump sum pension that will continue to pay 4 1/2%, or my Vanguard Roth IRA's into a single IRA.
Most folks lump everything into one IRA right off the bat.
I just don't see the urgency all of a sudden. I can take my time
(as far as I know)

The Tax rate on the severance is huge........ Thinking about going exempt and paying in one check at the end of the year, rather than trying to get the money back from the IRS.

Thoughts?

Signed: There
Click to expand...

I too would take the exemption and pay the tax when you file your annual return. No sense giving Uncle Sam an interest free loan!

And congratulations!

I too was unexpectedly retired early and would have been a true deer in the headlights had it not been for all the good people and info found here.
 
Congrats on your excellerated ER! I am in the exact position with a little twist. My mega corp announced last year that we were shutting down. We are going to continue Operations through 2014 to finish out some contracts. My thoughts were that they would send me home at the end of 2014 with a nice Severance package. The big guy came into my office about a month ago and told me they need to close the books at least until 2016 and asked if I would stay on. Well, given my salary and the level of stress dropping to very little, it's almost an offer I can't refuse. I live 10 minutes away and can do some of the work from home. This is totally different from when we were peddle to the metal at our peak. We shall see.
 
almost there said:
The Tax rate on the severance is huge........ Thinking about going exempt and paying in one check at the end of the year, rather than trying to get the money back from the IRS.

Thoughts?

Signed: There
Click to expand...

Just be careful to avoid putting yourself in a penalty situation with the IRS and state due to under withholding. I usually go for the safe-harbor, make sure my withholding and estimated tax payments at least equal last years total tax as listed on second page of 1040.
 
count your blessings

Congratulations, and good luck to you. I always try to consider this situation a blessing of fate. Your prudence has put you in the position to take advantage of this a bit earlier in life than most. Great job!!

These types of upheavals have happened to me more than a few times in my so-called career. Unfortunately, I wasn't ready nor prepared for the circumstance(s). Now, as I enter the final stretch of my working life, I'm hoping (praying) for a situation such as yours. Without it, the OMY syndrome may consume me, since I'm a chronic financial worry-wart. I just need a good, hard shove out the door. Hopefully, my employer will tire of my antics and toss my dumb ass out the door. I can only pray for such a situation.

So, count your blessings, focus your life and efforts on yourself and your loved ones. Again, congratulations, may you live a long, prosperous and happy retirement. :greetings10:
 
congratulations!

I'm hoping to be in a similar situation. I'm 51yo, (almost 52). I'm planning on 55 - but there are good odds I'll get RIFed sooner... and I'm done if that happens. I actually told one of my bosses to put me on a list - since severance is likely to get significantly reduced next April, so I'd rather go under the current severance plan.

I hadn't thought about the tax consequences of severance... off to go research.
 
"tax consequences of severance... off to go research"

Its going to be bad this late into the year. Not much can be done about that. The yr of un used sick time? I will get zero as I am under 55. In the past things were better with this Co. They offered much more in cases like this. 5-7 yrs added to age plus yrs of service in addition to the check. But this is the new way of doing business.
I am just happy to have prepared all through the yrs.
No dark cloud here.......:dance:

Now for that appointment with the Tax guy tonight......
And yes, its going to be ugly / painful.......
Un less I can spread it out over a few yrs. But am not sure there is much chance of that........:greetings10:
 
RE2Boys said:
Just be careful to avoid putting yourself in a penalty situation with the IRS and state due to under withholding. I usually go for the safe-harbor, make sure my withholding and estimated tax payments at least equal last years total tax as listed on second page of 1040.
Click to expand...

I received a large, lump-sum payout from cashing in my company stock when I left my company in late 2008. I carefuly read the safe-harbor rules in the instructions for estimated taxes to make sure I avoided penalties and was able to delay he payment of most of the added income taxes due until the following April. In fact, I used the same safe-harbor rule you described, but only for federal taxes. For state taxes, it turned out better to pay them in the year I took the payout because I was able to deduct them right away on my federal return instead of waiting a year. (Almost There, please take note of that in your tax research.)
 
almost there said:
"tax consequences of severance... off to go research"

Its going to be bad this late into the year. Not much can be done about that. The yr of un used sick time? I will get zero as I am under 55. In the past things were better with this Co. They offered much more in cases like this. 5-7 yrs added to age plus yrs of service in addition to the check. But this is the new way of doing business.
I am just happy to have prepared all through the yrs.
No dark cloud here.......:dance:

Now for that appointment with the Tax guy tonight......
And yes, its going to be ugly / painful.......
Un less I can spread it out over a few yrs. But am not sure there is much chance of that........:greetings10:
Click to expand...
Everybody's tax situation is different. I'd just make sure to do some multi-year planning. Before SS kicks in you may want to do Roth conversions but not this year if you have enhanced income -- maybe. Maybe you want to restructure your portfolio and sell some loosing positions. Having a plan even if it's updated might be superior to just looking at one year at a time.
 
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