Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-09-2015, 09:01 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Florence, AL/Helen, GA
Posts: 2,092
The only downside is the Cobra insurance issue. Are you able to purchase healthcare insurance through a DW's company, for example? Of course you may be eligible to purchase O'Bamacare if you were cut loose.

You've got to go for it.
__________________

__________________
Bamaman is online now   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 10-09-2015, 09:17 PM   #22
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
Congrats on the offer. I would take it.

Since you would be laid off, would you not qualify for unemployment? This would narrow the $ lost for the last 3 months.

Sent from my SPH-L720 using Early Retirement Forum mobile app
__________________

__________________
Aiming_4_55 is offline   Reply With Quote
Old 10-09-2015, 09:21 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
That's the jackpot, severance right when you were planning to leave anyway. Take it. You won't miss the missing few months of pay.
__________________
Animorph is offline   Reply With Quote
Old 10-09-2015, 09:25 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,412
Quote:
Originally Posted by Bamaman View Post
The only downside is the Cobra insurance issue. Are you able to purchase healthcare insurance through a DW's company, for example? Of course you may be eligible to purchase O'Bamacare if you were cut loose.

You've got to go for it.
I interpreted it as she would get the same COBRA as if she quit, it is just that the company will pay for her first 3 months of COBRA.

BC, I would go. Congratulations.

Just remember that if your retirement plan relies on 401k withdrawals that you need to be able to stay to Jan 1, 2016 (I presume the year you turn 55) in order to access your 401k penalty-free.

My mega did one of these voluntary separation offers about 25 years ago. The impact was that the employees with good job skills (other than some who were tied to the area) left, pocketed the bonus and quickly found other jobs and none of the deadwood signed up because they knew it would be hard to get a job elsewhere. So then we had more deadwood and less good employees left to do the same work. It was an unmitigated disaster.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 10-10-2015, 06:55 AM   #25
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 1,658
Quote:
Originally Posted by bclover View Post
don't want to name names but let's say it's one of the largest chemicals company's located id De.
IT is well documented in the press... no great insider information. Actually the layoff numbers are pretty tame. Nothing like the Lucent in the early 2000's.

Take the gift and hope you are not too important to let go of.
__________________
bingybear is offline   Reply With Quote
Old 10-10-2015, 07:15 AM   #26
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,049
Quote:
Originally Posted by rodi View Post
This may be true... or may not be true. It's up to the plan. Please verify with your 401k plan documents whether you can withdraw between the age of 55 and 59.5 penalty free. The law states that plans CAN offer this provision to allow non-penalty withdrawals if you separate after age 55... but it is not required. So check your plan.

I would take the deal in a heartbeat.
I don't think it depends on the plan. Looking at the U.S. Code 72(t)(2)(A)
(v) "made to an employee after separation from service after attainment of age 55," is exempt from early distribution penalty.

But I am not a tax guy, so who knows?
__________________
jim584672 is offline   Reply With Quote
Old 10-10-2015, 07:58 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,567
Quote:
Originally Posted by jim584672 View Post
I don't think it depends on the plan. Looking at the U.S. Code 72(t)(2)(A)
(v) "made to an employee after separation from service after attainment of age 55," is exempt from early distribution penalty.

But I am not a tax guy, so who knows?
It must be in the plans Summary Plan Description, additionally they must have a provision to provide early withdrawals, many don't.

Doesn't matter about the regulations if the plan doesn't allow for it. There's many older discussions on this topic.
__________________
MRG is online now   Reply With Quote
Old 10-10-2015, 09:22 AM   #28
Recycles dryer sheets
 
Join Date: Dec 2013
Location: Georgia
Posts: 88
I went through a similar situation a couple of months ago. The decision came down to retiree medical benefits for me by working 3 to 4 extra months until I was 55. I would double check on medical benefits, but if you don't get extra benefits at 55 and you can cover expenses, I would go now! I do think about the fact that if I had taken the package I would be done in less than 2 weeks, but I know I am closer everyday. Also, I didn't have the risk of being let go without the package anyway. This all comes done to a Pro vs. Con decision. Based on what I know, the decision to take the package sounds like all Pro to me.
__________________
Sasset is offline   Reply With Quote
Old 10-10-2015, 09:51 AM   #29
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Financial difficulties... presumably no DB pension or other retiree benefits in play? That being the case, I'd take it but want to stick around until at least 1/1/2016, because then you will have turned 55 in the year your separated from employment and you could access your 401K without penalty (only ordinary income taxes) assuming the plan is set up for that properly.

Dollar for dollar up to 9% is just about the most generous 401K match I've seen... but it isn't enough to constitute "golden handcuffs", IMO, given that you are being given 6 months salary and 3 months of health insurance.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-10-2015, 10:53 AM   #30
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 876
Quote:
Originally Posted by Aiming_4_55 View Post
Congrats on the offer. I would take it.

Since you would be laid off, would you not qualify for unemployment? This would narrow the $ lost for the last 3 months.

Sent from my SPH-L720 using Early Retirement Forum mobile app
No, we were told that since this is actually a voluntarily separation, we have to sign a waiver from unemployment benefit.


Thanks all, I am 85% sure I'm going to go for it. I have 500K in a few taxable vanguard accounts that I plan on using, that is 8 years living expenses that I can tap. my only debt is my mortgage, which I always include in my living expenses because I'm definitely not waiting to pay that off to retire. I know here everyone says your mortgage should be paid off but that isn't going to happen. lol


I do have two college students, presently at home. they are currently 21 and 24 who are still on my health insurance. they both work part time at companies (fed ex and wawa) that offer benefits so I may have them see if they are eligible. but my main concern is health benefits for them for the next two years.
__________________
bclover is offline   Reply With Quote
Old 10-10-2015, 11:26 AM   #31
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 511
Once one is in the "grey zone" - I think I have enough to retire but I'm not completely sure - it is always easy to make excuses to work another year. I was offered a package similar to the OP's in 2013 and again in 2014 and refused both times. Whether I'll be able to get such an offer again is by no means certain.

So was I right or wrong to stay? Depends on the age-old your money or your life question. Any of us could always use another few years of salary socked away. If it's worth those years of your life is only yours to answer.
__________________
stepford is offline   Reply With Quote
Old 10-10-2015, 11:35 AM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by bclover View Post
No, we were told that since this is actually a voluntarily separation, we have to sign a waiver from unemployment benefit.
Apply anyway. If your company is also doing involuntary layoffs, they may not challenge the "volunteers" who apply for for UI. The layoff people alone will likely put them in the highest premium category so having you and other volunteers collect will make no difference to them financially. This is how it worked at my MegaCorp when we were going through all this.....
Quote:


I know here everyone says your mortgage should be paid off but that isn't going to happen. lol
Actually, everyone here does not say that. In actual dollars and cents, as long as your mortgage is at a low interest rate, it will make very little difference whether it's paid off or not. Yes, many experience a feeling of euphoria and "peace of mind" when paying off a mortgage, but it won't matter much to your FIRE situation.[/QUOTE]
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 10-10-2015, 11:58 AM   #33
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,358
At this stage if I was offered a package I would likely take it. My Megacorp has offered similar packages periodically in the last 7 years, though with slightly more generous health terms (6 month of health coverage at the same cost as employees). I would use the lump sum as a health insurance reserve, since that is the most variable unknown in retirement, and Megacorp no longer provides us much retiree insurance (just a "slush fund" that can be used towards paying their health insurance options but at current rates would only last 2-3 years).
__________________
Current target FIRE date: Under negotiation, can happen anytime.
jollystomper is offline   Reply With Quote
Old 10-10-2015, 01:47 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
The first package, historically, is always the best. Take it and figure out how to max your family health insurance options.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 10-10-2015, 02:08 PM   #35
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 2,472
If I were faced with the conditions you presented, I would have already submitted the paperwork.
__________________
Car-Guy is offline   Reply With Quote
Old 10-10-2015, 02:13 PM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Quote:
Originally Posted by jim584672 View Post
I don't think it depends on the plan. Looking at the U.S. Code 72(t)(2)(A)
(v) "made to an employee after separation from service after attainment of age 55," is exempt from early distribution penalty.

But I am not a tax guy, so who knows?
It is my interpretation that this means you are separated from the company AND you are over 55. You do not need to wait until 55 to separate, just be gone and old enough. You could be working somewhere else as well.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 10-10-2015, 02:18 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
P.S.
I would take the package in a New York minute.

IIRC, DuPont did something like this in the '80's and had the results noted above. The people they did not want to leave (engineers) left and those they wanted to leave (middle managers) stayed.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 10-10-2015, 03:17 PM   #38
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,150
Have you run FIRECALC with both scenarios just for grins?

For the kids, exchange HI is pretty reasonable for young people, especially if you are willing to cover a high deductible for them.
__________________
"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 10-10-2015, 04:26 PM   #39
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
OP: Take it! I think you can also collect unemployment and read up on obamacare...Since you'll be retired, you can keep your MAGI below 400% FPL and get a subsidized health insurance.

I'm five years away from my retirement but I would jump onto any offer like yours my megacorp offers.
__________________
Retired at age 52 on 12/1/2016
AA:60/40 WR:3% until 2022 then 4% is the plan
retire2020 is offline   Reply With Quote
Old 10-10-2015, 04:45 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
The OP was considering retiring in the future. Now there is a potential severance package. No need to decide she will be retiring as a result of the severance offer. She can look for employment after termination or retire as best suits her analysis.
__________________

__________________
Duck bjorn.
Brat 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
Would you stay in a marriage if your spouse Cheated? Letj Other topics 176 06-08-2011 12:54 PM
Offered Money for helping out..what should you do? easysurfer Other topics 24 06-01-2011 03:21 PM
Would you like to gain weight loose weight or stay the same? Poll summer2007 Health and Early Retirement 36 08-05-2008 11:38 AM

 

 
All times are GMT -6. The time now is 11:13 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.