Laid Off - Keeping ER on Track

[2035]

Hi All,

Three weeks ago, I was informed that my job (along with hundreds of others) would be eliminated, but I negotiated to stay until 2/1/2017. I will continued to be paid bi-weekly until 4/5/2017, after which time I will we paid for excess vacation and 23 weeks of severance plus $9,000 for insurance - if I don't find an internal job. I'm half hoping to start anew with an outside company, but I'm a little nervous especially since I haven't finished my college education and my current job paid really well for admin work. I think my skills and experience are enough to compensate for the lack of degree. This is my second layoff - the first was WaMu in 2008, but I found a better job within a year. [emoji5]

My question is...has anyone managed to stay on track for ER through multiple layoffs? I started saving a little late, as I've mentioned, but thankfully I've managed to max out my 401(k) for the last few years.

My two big priorities during this uncertain time are staying healthy and insured, and protecting my nest egg.

Right now I have at 43:

401(k): $244,000
(+ $4,000 upcoming contributions thru 4/5. I started with $25,000 in this account on day one of my employment in 2009 - which I transferred from a rollover IRA.)

Roth: $50,000
I'll either make one lump contribution in April for my remaining 2017 contributions or I'll contribute monthly as normal.

Pension:
Age 55: ~$650+
Age 60: ~$700+
Age 62: ~ $750+
Ag 65: $850+
The company said they don't plan to offer pension payouts. Too pad, is like to roll it over into an IRA.

Cash: ~$25-30k after taxes

 

[growing_older]

Yes, but mostly because I was very aggressive about job hunting. I started looking immediately and was willing to accept good work at good pay instead of holding out for a perfect job with wonderful pay. Then I worked my way back up with my new job.

My coworkers who held out for positions comparable to what they left, were out of work for two years, and in at least one case lost their house.

 

[2035]

Yes, but mostly because I was very aggressive about job hunting. I started looking immediately and was willing to accept good work at good pay instead of holding out for a perfect job with wonderful pay. Then I worked my way back up with my new job.

I see your points and I agree.

I'm looking now, mostly through LinkedIn. And, I'm not going to hold out for the perfect job...I'll factor in retirement benefits, commute time, etc. I'll even move if I have too. [emoji846]

 

[brewer12345]

I didn't have many layoffs, but they came at horrendous times (August 2008 when I worked in finance, for example). Get moving on the job search and after giving it some time be willing to compromise. You can always keep up the search while remaining employed. It will work out.


In the meantime, I think you are in decent shape and you have the financial wherewithal to deal with a short bout of unemployment. Frankly, the labor market is increasingly tight, so if you spend some time looking with a reasonably open mind you should not have that much trouble finding a halfway decent job. If you get time off, make sure you enjoy it. That is not something I ever really had the chance to do.

 

[38Chevy454]

Assuming you can find a job fairly quick, it should be no more than a slight speedbump in your progress. Say you take 4 months to get back to a new job. So that is 4 months of no 401k/403b contributions, and 4 months of potential needing to have some withdrawal from savings to supplement the unemployment. So a small speedbump, that you recover from and go on. I was laid off once and came out better after all said and done. Yes it sucked at the time, and the unknown was more of a stress compared to the confidence I would come out OK. Being laid off was a tough thing to accept, but being the younger guy with 5 years at the company and working with the rest that had 25-30 years, I was the expendable one. Not a work quality or other issue, just company not making enough money and need to cut heads. Mine was an easy one for them to chop. I knew i would come out good, the question was when, where and what job I end up with.

As for the financial aspect, it was a minor speedbump. I actually never even tapped savings. found the new job within the time unemployment was still paying (I think it was like 2 months), combined with the severance, and I did not have any cash income issues.

Just be flexible with the new job prospects and location. If you hold out for perfect, that is where you will potentially have more issues.

 

[RobbieB]

I worked for 8 companies in my "after school" career.

4 of them fired me and I fired 4 of them.

We're even and I'm retired.

Collect unemployment and party hearty while you can, the next job will be soon enough.

 

[jw72]

I was RIFed 4 times, 2 times I got 6 months severance, they were great years. One time they blind sided me (no clue) got out of the meeting called my wife. She said nothing for you here go get another job. Simpler times, printed a resume and went for to door. Had a Job at the end of the week.
Double down and get a job, the sooner the better.

 

[2035]

I forgot to mention, when I was laid off in Jan of 2008, I found a temp assignment the following month that lasted a year and led indirectly to finding my current job.

Each morning I'll get up and hike near my house and do Zumba a few nights a week. Unfortunately, I've let myself go a bit in recent years and without health you have nothing. [emoji962]**[emoji1601][emoji474]*

 

[Shanky]

Just remember, when you find a job before your Severance is up, you have gained ground.

 

[mystang52]

One way to help you stay on track, until you get another job: cut back on discretionary expenses NOW. You don't know how long your unemployment may be. If it's short, that's great. But if it's longer, cutting back now gets you used to a more frugal lifestyle, and preserves the assets you currently have.

 

[broadway]

One thing you will need to find out is when you can legally start collecting unemployment. Your HR department should have told you that.

We were told at the walkout meeting that we were able to legally apply for unemployment immediately despite the severance package.

 

[RobLJ]

Don't know your expenses, but the cash looks good.
DW lost her job after we relocated to Reno, but we had planned on 1/2 of the former income, and are doing fine. She found another job at 2/3, and then another here in Reno at about half.
It helps that I kept on part-time at half salary.
No impact to retirement plans at all.

 

[brucethebroker]

Lots of good advice so far.

Your current financial situation should be required reading in college. The fact that you are not going to have night sweats worrying about your future (you're not, right?) due to your financial management so far is why saving and investing while young is so important.

Congrats on your progress. Good luck with the job hunt.

 

[VFK57]

I worked for 3 mid to large size manufacturing companies and 4 small - mid level contractors. There are always signs of trouble and eventual lay offs or departments outsourcing ahead of actual event. At least twice I faced a potential lay off. One outsourcing company offer (what replaced our department) offered lower than original pay / benefits what I declined. I was looking for a job ahead of planned lay off and accepted same (1st time) and better offer(2nd time) ahead of it instead of waiting for a severance package. Yet some of my co-workers choose the package. It is a personal decision.

 

[W2R]

I think you are doing fine at age 43, much better than I did anyway, even though you will surely want more of a nest egg before you retire.

You'll get another job, and carry on. What other choice do most of us have? Things could be much worse. And, with the severance package, you have some income to help you out while you look for that next great job.

 

[Brat]

Do not forget to gather contact information on your supervisor/manager and co-workers. That can be great for networking and references.