Retire in 10 years from job

[kjeno]

I know someone who worked at walmart for 11 yrs and decided he would quit. When he did he requested his reitrement under ( see my retirement clause ) he said he had done this before working somewhere else for 12 yrs and it could be doen after working for  a compnay for around 10 yrs or more some companies for only 6 yrs. He said they companies dont want you to know about this that they just want you to work there and eventually quit and get nothing.

When he requested this from the store manager at walmart they tried to play it off like it didnt exist then he told them he would contact his attorney and get more that what he was owed and they gave in. They did the paper work and he got a check for $27000 with a letter stating he would get 2 more checks. He cashed in his life ins and 401k and stock and all got around $77000.

He finally got tired of not working and went to work at dollar general for a few hours a week and was going to quit but they promoted him to assistant manger he said maybe he will stay there 10 yrs and request his retirement there as well.

Can anyone tell me where to find out more info on this without going to a lawyer

Thanks
Kory

 

[maddythebeagle]

If you cash in your 401k before your 50s and take as a lump sum, you get a penalty as far as I know.

 

[BUM]

kjeno,

Your acquaintance is a nut. Dont listen to him. Don't do what he did. Going from Walmart to loafing to Dollar General is probably not the path to FIRE (RE maybe, but not FI).

If you want info on a company's retirement plan, ask them for a copy. These plans are long term benefits not short term freebies.

 

[uncledrz]

Under ERISA pensions vest in 5 years (there is another scale which is a sliding scale, but most use the 5 year provision). Until the mid 80's it was 10 year vesting.

Still, withdrawing the pension funds prior to retirement age subjects those funds to additional taxes and loses the benefit of compounding. Thus, not a very good idea.
Actually is a road away from FIRE.

 

[JPatrick]

Cash in a 401K?  Many do this everyday when they change jobs. Many of those simply pee it away on stuff and penalties.  Cash company stock?? No magic there.  Cash life insurance.  No magic there either if you've got a cash value policy.
Sounds like he created a pile of cash from what assets he had accumulated.  This isn't making money, it is simply putting money from one hand to the other and sadly, probably spilling some during the transfer. 

 

[maddythebeagle]

Maybe he slipped on a wet floor and got a settlement.