Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
RIF'd Two Years Ahead of Plan
Old 10-24-2010, 04:20 PM   #1
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
RIF'd Two Years Ahead of Plan

I was informed this week that my services are no longer needed. I wasn't too surprised as we recently were aquired by another company and they haven't kept it a secret that they are less than impressed with the former companies leadership and performance.

Anyway, I was hoping to work two more years and leave at 55 on my own terms. DH would work three additional years and retire at 58. The plan was to fix up the primary residence and place it on the market at the appropriate time. We would be debt free and have time to load up the 401ks and set up a nice "fun fund".

I am on payroll for 30 more days and have the option to find another position in the company, but I'm doubtful as they are looking to staff positions with their "own people". I can look at other companies, but my age, title and salary will most likely limit my options.

DH is encouraging me to apply for unemployment and ease into retirement. I make quite a bit more than DH, so we can't afford for me not working until we sell the primary house (our other home is paid for and we practice LBTM). I have lots of hobbies and interests, but I'm not sure I'm ready to downshift into retirement.....plus all my friends are still working.

I'm not whining. I know others have been through similar circumstances and I'm just looking for some helpful hints and ideas.
__________________

__________________
Dog 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 10-24-2010, 04:38 PM   #2
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Quote:
my age, title and salary will most likely limit my options.
Certainly there is a lot of age discrimination in employment and that could even apply within your current (new to you?) company. But if you are close enough to FI to be considering retirement now, could you not also entertain the idea of taking a lower paid position, possibly even a lower title position as you wind down towards retirement instead of simply abruptly start it. Could you consult about what you do? Maybe transition to another dept that has to interact with your old dept - you speak the lingo - and might be able to transfer elsewhere at a lower level where your extra experience might not be reflected in salary but could be in respect and wanting you enough to overcome the age issues.
__________________

__________________
growing_older is offline   Reply With Quote
Old 10-24-2010, 05:33 PM   #3
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
Thanks Growing Older. The options for another position within the company are limited. They are still reducing due to duplication of job functions. I was also told I don't have to show up anymore even though I'm still on payroll....then told not to read anything into that as my being released had nothing to do with my performance (my former organization is outperforming their legacy organizations and they are sending in some of their leaders to observe why). So...not sure what to read into that. It really doesn't matter to me - I don't want to dwell on that....just giving you an idea of the culture.

I've already started looking outside for other opportunities and quite frankly a job with less responsibilities (not working 10 -12 hour days) is appealing. I'm not hung up on the title.... "been there - done that". I've just heard from others in similar circumstances, that companies get suspicious when you are willing to take a "downgrade" in pay and responsibility. So, I shall see how that goes.

To answer your question - I manage a large sales organization in telecommunications.

Again, I'm fortunate that we have a simple lifestyle and won't have to make many changes.
__________________
Dog is offline   Reply With Quote
Old 10-24-2010, 06:47 PM   #4
Recycles dryer sheets
 
Join Date: Mar 2009
Posts: 281
Quote:
I can look at other companies, but my age, title and salary will most likely limit my options.
You could try consulting, contract work or self employment. My husband's former company has had a lot of layoffs of the senior people these last few years. I noticed at their last get social get together most of them were doing contract work these days, though some had still found new full time positions.

If you aren't ready to retire yet and can't find a new job, there is always going back to school to update your skills or change careers. You might actually find a new career you enjoy more than your last one.
__________________
TooFrugal is offline   Reply With Quote
Old 10-24-2010, 07:30 PM   #5
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
If your skill is one that is widely applicable, you might also think of registering with a temporary agency as a way of gradually shifting from full-time work to retirement. When I was out of work years ago being registered as a temp did not stop my unemployment benefit. When I was working on an assignment I did not get a check, but when I had none I still had the benefit to fall back on. This was a long time ago, so check the rules that apply now and in your state—YMMV.
__________________
kyounge1956 is offline   Reply With Quote
Old 10-24-2010, 07:55 PM   #6
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
I also was laid off in a wave of new management restructuring like you describe. Just a few years too early according to my ER plan. I think this is a very good time for potential-ER folks to claim unemployment as there are some extensions and I was frankly looking forward to it. Unfortunately (or not depending on how you look at it) I landed some new work before I could even make the claim. I am older, with a more technical contributor title than yours, but presumably facing the same bias against older workers. So it is possible, but I think there's a bigger element of luck (being in the right pile of resumes at the right time) than usual. I think the best advice is to be open to a wider range of possibilities and do put in the effort to search in more directions that you might normally do.
__________________
growing_older is offline   Reply With Quote
Old 10-24-2010, 08:03 PM   #7
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by Dog View Post
To answer your question - I manage a large sales organization in telecommunications.
Unfortunately (unemployed) managers are a dime a dozen. Do you have any technical skills? Someone so close to retirement should not need a large income. Sounds like your debt is a problem. Unemployment is 99 weeks and close to $500 a week at the top.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 10-24-2010, 08:40 PM   #8
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
Thanks all. I appreciate the feedback. Thankfully, we don't have any debt other than the mortgage. We owe about $211k and the house is currently worth about $325k according to our tax assessment and zillow. We just need to do some painting and updating to sell it. Luckily, it is in a desirable location - close to schools and not a lot of foreclosures. We pay off our cc each month and own our "retirement" home and both vehicles. DH will have FERs and his 401k. I have a $1M+ IRA, a small 401k, $58k stock grant (vests in 2012) and about $100k in liquid funds. We will have a comfortable retirement. Frankly, I was just looking forward to adding more to the 401ks and building up the "Fun Fund" for some world travel and hobbies. Again, I can't complain - I just wasn't mentally ready to go.

Actually, writing this has helped me realize that my real issue is not being able to leave on my terms....when I felt ready to go. This has been very therapeutic. Thank you!
__________________
Dog is offline   Reply With Quote
Old 10-24-2010, 09:14 PM   #9
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Friend of mine had same happen, same age. He didn't want to work full time, didn't want to retire, wasn't excited about "selling himself" all the time as a consultant.

So - he found successful consultants in his specialty and he is a subcontractor to them.

Works great. The consultant is the "rainmaker" bringing in the business (they generally top MBA school pedigrees) and he is inside.

Making 2/3 of what he used to - a lot of flexibility - a lot of variety.
__________________
Delawaredave5 is offline   Reply With Quote
Old 10-24-2010, 09:15 PM   #10
Recycles dryer sheets
superdave's Avatar
 
Join Date: Jun 2004
Location: Bedford, NS
Posts: 132
I was 'rightsized' in IT at least 3 times. My wife has always kept my work phone number in pencil. The first 'escorted walk out' is tough, but in IT, is not unusual at all.

I totally understand that you want to leave on your own terms. If you have appropriate skills, try contract work if it is available. You can potentially outearn your old salary by 50 to 100% and you could reach your retirement targets quicker.
__________________
superdave is offline   Reply With Quote
Old 10-25-2010, 04:35 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
If you think you need to work... then look for a job. Unemployment plus your DH salary should help you to tread water till you land a job.

This recession will end. You skills will be in demand. But this temporary situation might delay your plans a bit.

Build a detailed plan for retirement. Reevaluate all expenses and identify sources of income.

Many on this board have recommended "Your Money or Your Life". It is about working, spending habits and reevaluation of them.

Unless you are deeply in debt, you might find that you are in better shape than you think. Especially if you shed certain expenses that really do not matter. Many have figured out that there is a cost to working.
__________________
chinaco is offline   Reply With Quote
Old 10-25-2010, 09:38 AM   #12
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,676
I am sorry to hear about your situation, which seems to happen way too often. Kudos on your positive outlook.

Even after planning for ER for years and leaving work on our own terms after having reached our financial targets, we have had our moments of doubt.

If this were my situation, I would look for a job. Jobs are out there for qualified people especially those who have extensive networks & know how to use them. Your profession puts you in the sweet spot!

Better to retire to your plan, after you feel you have achieved FI than to (potentially) have a lower standard of living than planned - for the rest of your life. Also, you need to be psychologically ready to exit the work-force.

All the best.
__________________
walkinwood is online now   Reply With Quote
Old 10-25-2010, 09:39 AM   #13
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Sorry to hear your plans were nerfed a bit by forcing an "early out" but good for you in figuring out how to make lemonade out of lemons.

I think we have a few FIRE'd folks here who were forced into FIRE by premature job losses who have managed to do quite well. Hopefully they can be a source of inspiration and show that you can do it.
__________________
"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 online now   Reply With Quote
Old 10-25-2010, 10:56 AM   #14
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
Quote:
Originally Posted by Dog View Post
I was informed this week that my services are no longer needed. I wasn't too surprised as we recently were aquired by another company and they haven't kept it a secret that they are less than impressed with the former companies leadership and performance.

Anyway, I was hoping to work two more years and leave at 55 on my own terms. DH would work three additional years and retire at 58. The plan was to fix up the primary residence and place it on the market at the appropriate time. We would be debt free and have time to load up the 401ks and set up a nice "fun fund".

I am on payroll for 30 more days and have the option to find another position in the company, but I'm doubtful as they are looking to staff positions with their "own people". I can look at other companies, but my age, title and salary will most likely limit my options.

DH is encouraging me to apply for unemployment and ease into retirement. I make quite a bit more than DH, so we can't afford for me not working until we sell the primary house (our other home is paid for and we practice LBTM). I have lots of hobbies and interests, but I'm not sure I'm ready to downshift into retirement.....plus all my friends are still working.

I'm not whining. I know others have been through similar circumstances and I'm just looking for some helpful hints and ideas.

Focus on the positives. What skills do you have? What experience do you have? For a short time, would that experience benefit someone?

Think teaching- community colleges or high schools (maybe as adjunct faculty). Some schools might welcome getting a different kind of teacher for computer classes or similar higher level instruction. Maybe you could be a guidance counselor.

Do you have a competitor? Check their website for open positions. Are you willing to travel for work? If so, think about selling what you used to do behind the scenes- you might have insights other salespeople do not, and sales is sink or swim- meaning who cares about age, if you can make sales, you stay.

From retirement perspective- focus on no new debts, and pay down the debts you still have outstanding. If you have investments- how much do they need to grow to be financially independent?
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 10-30-2010, 08:56 PM   #15
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
Thanks all for the encouraging words of wisdom! I'm working my network and posted my resume online. I've had several calls and an interview next week. Thanks again.
__________________

__________________
Dog 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
30 yr old expatriate trying to think ahead thaidyed Hi, I am... 23 07-30-2008 09:00 AM
24 and looking ahead MyOwnTime Hi, I am... 10 06-23-2008 01:17 PM
Looking for a great personal finance plan that will make me wealthy in 30 years RLCMA Young Dreamers 103 04-14-2008 10:33 PM

 

 
All times are GMT -6. The time now is 01:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.