Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
just lost my job
Old 07-12-2006, 05:10 PM   #1
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 133
just lost my job

I just lost my job. My whole department was laid off. We got a nice severence package (5 months).

I should be stressed, but I am not. Some how I actually think I might come out ahead. In fact I am loving my free time. I guess I will need to find a job before my company quits matching my 401k in October.

Yesterday I was thinking, you know I could probably avoid working for a year, but then I would miss my savings goals.

I feel bad for my friend/co-worker. He is in debt up to his eye balls. I think the stress might honestly kill him. He has an ARM, and still isn't making it. I sat down with him yesterday and told him to sell his house, and buy a cheap condo. (and swallow his pride if necissary).

RW
__________________

__________________
rw86347 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!

Re: just lost my job
Old 07-12-2006, 05:29 PM   #2
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: just lost my job

Congratulations on your financial foresight. LBYM pays off when life happens. You have the luxury to smile and do a good job search.

I don't know what you do, what you will do or where you want to live while you do it but there is life after being run off. Five months severance says that you won't even feel a significant impact for that period of time and if all goes well you can pocket a little cash.

I've been downsized, right sized and just plain fired before and I can assure you you will live through this. My advice is to first start looking immediately for a comparable position but also evaluate your options for something you'd like to do better and what you can get quickly if nothing shows up soon so you won't lose any income flow.

As the dust settles and you aren't reemployed quickly you can start thinking about how you can take advantage of your new freedom while still job hunting. Count your cash and see where it fits into a life plan. If you aren't ready to FIRE now, you're gambling by taking a year off.

I've watched many coworkers get repod of cars, boats and houses. My first layoff was probably the best thing that ever happened to me financially. I was in debt up to my eyeballs and would have lost my house and been living under a bridge if I didn't find something as quickly as I did. That gave me financial religion that has me pretty close to being ready to FIRE myself.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: just lost my job
Old 07-12-2006, 06:16 PM   #3
 
Posts: n/a
Re: just lost my job

Quote:
Originally Posted by rw86347
I just lost my job. My whole department was laid off. We got a nice severence package (5 months).

I should be stressed, but I am not. Some how I actually think I might come out ahead. In fact I am loving my free time. I guess I will need to find a job before my company quits matching my 401k in October.

Yesterday I was thinking, you know I could probably avoid working for a year, but then I would miss my savings goals.

I feel bad for my friend/co-worker. He is in debt up to his eye balls. I think the stress might honestly kill him. He has an ARM, and still isn't making it. I sat down with him yesterday and told him to sell his house, and buy a cheap condo. (and swallow his pride if necissary).

RW

I am guessing that your company will not match your 401K or even allow you to keep contributing to it while you are not working. I could be wrong, but this is the way the severence usually works.
__________________
  Reply With Quote
Re: just lost my job
Old 07-12-2006, 06:36 PM   #4
Recycles dryer sheets
VoyT's Avatar
 
Join Date: Feb 2005
Posts: 445
Re: just lost my job

Really sorry for the layoff, but isn't it great that you can get by for a while without the paycheck?
__________________
"Coffee: the finest organic suspension ever devised." -- Kathryn Janeway
VoyT is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 11:19 AM   #5
Full time employment: Posting here.
bow-tie's Avatar
 
Join Date: Mar 2004
Posts: 687
Re: just lost my job

That's a bummer about your layoff. Hopefully it works out for the better.

Does this ease the issue with your DW wanting to move to a different house? Or does this add fuel to the fire?
__________________
Diggin' my way to financial freedom, one buck-at-a-time
bow-tie is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 11:34 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: just lost my job

My severence package was 23 wks pay, during which time the insurance and 401k matches continued. YMMV...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 12:47 PM   #7
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,225
Re: just lost my job

My severance package included insurance for the first 60 days (due to california labor laws) but it stopped after that even though I got more severance pay.

The 401k contributions were automatically made at the rate I had been contributing before. One hassle was that I had to wait until about 2 months after leaving before I could roll over my 401k account, because my company forgot to release the "more contributions may be coming in" lock on the account.

Congrats on having gotten yourself into a place where you have some breathing room.
__________________
free4now is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 12:56 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: just lost my job

Congrats on the 5 months of free money , and good luck on the new job search .

Spend tons of quality time with your daughter while you have the time! In a recent post you said that was one of the reasons you wanted to FIRE in 7 years - to spend more time with your daughter. Now is your chance.

You've worked hard to structure your life in a financially conservative manner just in case something like this happened.
__________________
justin is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 01:15 PM   #9
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: just lost my job

Sorry to hear about the job loss. Losing a job before you are ready can be traumatic. Losing a job when you are prepared financially but not emotionally ready can be a catalyst to make you choose which way you really WANT to go. Sometimes it is not always about the money. If you are not ready to ER the stress of finding a new job can be consuming.

I wish you the best of luck in your chosen direction.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 06:03 PM   #10
Dryer sheet aficionado
 
Join Date: Apr 2006
Location: Chiang Mai
Posts: 42
Re: just lost my job

I know it will work out for you with your positive attitude. My goodness son, it's at least summer so one or two months of doing nothing but relaxing is something you deserve.
I am lucky in the sense I do blue collar work and have never lost a job, always had a paycheck coming in, unlike most of my buds who like you get the axe now and then. Ok pal, good luck.
__________________
Sendbaht
sendbaht is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 06:15 PM   #11
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: just lost my job

My former "partner" at work got laid off 6 months ago... received a severance of 12 months (nice)... refuses to look for another job until this fall sometime...
Continues to spend like he's working... the end is coming and my prediction is: NO JOB. When that happens, this stubborn guy will realize the folly of his ways.
He's about 50 and nowhere near ready for retirement.
Moral: LBYM
__________________
renferme is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 07:20 PM   #12
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 329
Re: just lost my job

I can't imagine people who'd keep spending the same amounts. I'd start looking for a job the first day. If I got one, then I'd consider it a great way to get ahead 6 months towards FIRE.
__________________
NinjaPigeon is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 08:42 PM   #13
Recycles dryer sheets
 
Join Date: Nov 2005
Posts: 355
Re: just lost my job

Reply to 2B: That early-in-your-career financial trouble is the best time to learn that hard lesson. I went through the same when I was 27 with my new, first house mortgage. That was the best financial lesson that I've learned. After that, my motivation was to LBMM, save, and invest which eventually lead to FI/RE. Now I'm grateful for that ill-timed layoff, I just didn't know that at the time.
Joe
__________________
heyyou is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 10:17 PM   #14
Recycles dryer sheets
 
Join Date: Oct 2004
Posts: 260
Re: just lost my job

Quote:
Originally Posted by rw86347
I just lost my job.* My whole department was laid off.* We got a nice severence package (5 months).*

I should be stressed, but I am not.* Some how I actually think I might come out ahead.* In fact I am loving my free time.* I guess I will need to find a job before my company quits matching my 401k in October.

Yesterday I was thinking, you know I could probably avoid working for a year, but then I would miss my savings goals.

I feel bad for my friend/co-worker.* He is in debt up to his eye balls.* I think the stress might honestly kill him.* He has an ARM, and still isn't making it.* I sat down with him yesterday and told him to sell his house, and buy a cheap condo.* (and swallow his pride if necissary).

RW

Won't you and your friend be entitled to collect unemployment insurance as well as the severance you received?
__________________
GTM is offline   Reply With Quote
Re: just lost my job
Old 07-13-2006, 11:18 PM   #15
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: just lost my job

Unemployment benefits are pretty meager.

Best of luck on the job search, and take the time you need ... but don't delay too long on that job search. I've seen those nice "free money" times become fond memories when the job search extends longer than anticipated ...

Congrat's on LBYM. Huge deal, especially at times like this.
__________________

__________________
Craig 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
Legal for employer to advertise your job before you've left? TheGeneral Young Dreamers 9 03-06-2007 12:18 PM
Thinking out loud about a possible job move HobbyDave Young Dreamers 15 05-25-2006 02:29 PM
Which job to pick? geeman Young Dreamers 65 03-13-2006 06:00 PM
The Perfect Job flipstress Other topics 9 12-02-2005 05:00 PM
Possible Job Opportunity... brewer12345 Young Dreamers 18 12-10-2004 06:51 AM

 

 
All times are GMT -6. The time now is 05:01 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.