So I was RIF'ed in October. As you can well-imagine that threw a monkey wrench into our plans. I had a lot riding on making it to "the end" in my current job: Earning a northeast big city salary but living in the much-more-affordable southeast. I needed just five more years.
I actually did a lot to dig into my position. I was quite vital to the company's ability to serve dozens upon dozens of client companies. The others who could make the software changes necessary to keep things humming along kept falling behind as they pursued furthering their career by investing time in new technology. Well, evidently, that wasn't enough to keep me safe. Honestly, and without any sense of self-promotion, I have no idea how they're going to keep those customers satisfied without me. Luckily, for me, it isn't my problem.
I've got an offer in-hand for a new position. It's "good enough" and I'll be taking it. To get it, though, I had to re-brand myself. Since I stuck with the old technology, my software development skills were no longer in demand - at all - but luckily my solution design skills were. However, it's still a career change (literally my third career), which adversely affects compensation, and of course the change from northeast to southeast also affects compensation.
What's strange is that it didn't move the ER date out more than a handful of months. I suppose it is [a] the impact of the marginal rate of taxation at the upper end of the range, so few years left, and [c] the heavy impact of delaying having to pay full price for my own health insurance. So somehow, even with a 30% pay cut, I'm still class of 2022. Very strange.
As soon as I start working and get the lay of the land at the new megacorp, I'll have a better feel for how likely it is I'll make it to the end, there. And once I have that assurance again, it'll be time to start thinking more carefully and clearly about Life after FIRE.
I would think it is a bit early to hint about a package, unless you know your boss well. Otherwise, could they hold it against you indirectly in comp over the next few years?I'm targeting mid April 2022 and couldn't find a 2022 thread so I ended up posting in the 2024 thread until I found the 2021 thread which was closer. Nice to see a 2022 thread created.
If I get offered a standard departure package from the company, I'd probably call it a day at that point since the packages are relatively generous and should be enough, after taxes, to cover my half of our basic annual expenses for about 3 years.
It's not critical at this point yet but I'm debating when to drop hints to my manager that I might be interested in a package (it's kind of vague when they might be offered so it might help if I indicate I'm interested) versus giving enough notice so they can hire and train a replacement. I think my ideal situation would be to snag a package about a year out in Q1 2021 or Q1 2022.
And I'm counting alright...
46.3 months = 1407 days to go -> 858 working days left after subtracting weekends, statutory holidays, and vacation days.
I would think it is a bit early to hint about a package, unless you know your boss well. Otherwise, could they hold it against you indirectly in comp over the next few years?
Why April?
Company pays bonus end of March.
I will be able to save the max 401k contributions by then.
Does anyone know a reason for a different date within a year?
Why 2022?
I should have $2.5MM by then. This is about $500k above my projections what I need to RE with a 3.5% WR...
I am formally joining this class. April 2022 is the date! T minus 1,356 calendar days.
Background Information
I just turned 49. I will be 52 when I RE.
Savings to date: $1.7MM, 70/30 split, 60% post tax, 40% 401k. House (1,500 sqft, 200k market value) paid off.
I have dual citizenship US/German. One daughter (19) living in Germany, one son (12) living with me in the US. Two divorces! Happy single.
Living in NC. Very nice, low cost of living!
Why April?
Company pays bonus end of March.
I will be able to save the max 401k contributions by then.
Does anyone know a reason for a different date within a year?
Why 2022?
I should have $2.5MM by then. This is about $500k above my projections what I need to RE with a 3.5% WR.
I am kind of worried about market performance over the next couple of years. Feels like a good idea to wait out the next dip.
My daughter living in Germany should have finished her college degree by 2022, giving me peace of mind she has a good start of her own.
My son will be in 11th grade. I am looking forward to spend more time with him during his last year in school before he moves out and goes to college.
My big dream is to convert a van to a RV and tour the US/Canada for a year or two. This won't be possible until my son is in college and I need a few months to build this thing.
I HATE w**k more and more! It all started first day in kindergarten when I first had to get out of bed and start the daily grind. I hated it ever since!
Thanks Jake in China for the advice. I do agree with your thoughts on diversifying into real estate as a good option, however I don't think it is the right thing for me. I would be over worrying with having to deal with renters and their issues and complaints. Right now, this feels too much like work to me. Maybe investing some into a REIT is as far as I feel comfortable.Fassmac - Why don't you get into real estate and diversify your income stream for when you retire at 52yrs old? You live in North Carolina, where you can purchase inexpensive homes, pay low prop taxes, and rent out the homes for a decent return.
Your young at 52 and still have over 10 years until 401K and Medicare kicks in. Depending solely on the stock market IMO is risky and will require you to have at least 1 to 2 years of cash to cover your cost of living in case the market drops big time.
Look at properties in NC in your area, what price you can buy at (any foreclosures?) and do the math on figuring out rental income vs costs and find the return on investment. IMO if its above 6%, I think its a good deal. Many tax advantages to renting out property, and your real estate will appreciate slightly in NC (not big time like up north). Check it out