Running against a timeclock

[Red Badger]

Some observations:

First, this is very generous offer. Second, it portends even more disruption in a workplace that is already stressful. Do you think that you will want to work at the place your company is becoming? Third, if you say "no" to this offer will you still have a job or be able to get a comparable package? Sometimes the first offers are the best offers. ER and WFR packages get smaller as time goes on and the costs mount. Then, the offers disappear altogether and performance management takes over!

Yes, you may need to make some changes in your lifestyle, but you still will have considerable resources. Best of luck with your decision. For me, retiring at 57 was the right choice.


br

Like bigreader said, that offer may be the best you'll ever receive.

When I got RIF'd in the army after the cold war,I was offered a fairly decent separation package. But they were clear that if there weren't enough takers, those who passed up the package might be separated at a later date with nothing more than, "Don't let the door hit ya where the Good Lord split ya." I took the package and, over 25 years later, ZERO regrets.

Pigs get fed - hogs get slaughtered....

 

[Luck_Club]

Long time lurker .... first time writer ever here or elsewhere. Have to decide whether to early retire with 60 weeks pay and benefits in the next 36 hours. Job is very stressful and little satisfaction for past few years. Know I've worked hard and am very fortunate and blessed to have saved early and regularly. Think I am set but insanely nervous nonetheless. Married 58 year old and been with megacorp for 25+ years. Have about $3.5M in deferred comp (a third of which gets paid at termination), $2.6M in 401k/IRA, and $750K in brokerage account. Expenses (yes, I know too high) run about $270K annually (includes $350k remaining mortgage and health costs but not taxes). Another $700 K coming over next two years from restricted stock. Have a freshman in high school who will go to college but $220K in a 529. Deferred pension of $29K a year starting in 2025. Will wait for Social Security until full age or 70. Firecalc and Fidelity planner lead me to believe okay but still worried about downturn in market, health costs, kid in high school and his college down the road. How does one ever feel comfortable jumping out? What am I missing?

The benefit of having this has all but been eliminated. Assuming that is the remaining balance and given your saving rate the original was probably pretty high, you can probably drop your spending by a few $k a month. you have the 12 months pay to carry you through to 59.5 to access your IRA + a big deferred comp bonus....

Take the money and run you lucky B$%$ard

 

[RunningBum]

36 hours have passed...what did you do?

 

[Bigdawg]

Long time lurker .... first time writer ever here or elsewhere. Have to decide whether to early retire with 60 weeks pay and benefits in the next 36 hours. Job is very stressful and little satisfaction for past few years. Know I've worked hard and am very fortunate and blessed to have saved early and regularly. Think I am set but insanely nervous nonetheless. Married 58 year old and been with megacorp for 25+ years. Have about $3.5M in deferred comp (a third of which gets paid at termination), $2.6M in 401k/IRA, and $750K in brokerage account. Expenses (yes, I know too high) run about $270K annually (includes $350k remaining mortgage and health costs but not taxes). Another $700 K coming over next two years from restricted stock. Have a freshman in high school who will go to college but $220K in a 529. Deferred pension of $29K a year starting in 2025. Will wait for Social Security until full age or 70. Firecalc and Fidelity planner lead me to believe okay but still worried about downturn in market, health costs, kid in high school and his college down the road. How does one ever feel comfortable jumping out? What am I missing?

Did you take the package? My bet is that he did not take the deal.

 

[38Chevy454]

36 hours have passed...what did you do?

X2, the curious want to know the outcome. It seems that OP received many replies encouraging to take the package, did OP take the advice?

 

[Ynotnow]

Just before the deadline, pressed the stay button. Very very conflicted. Decided to try and get the kid through high school. Can leave on my terms (without the juiced up separation benefit) anytime between now and then if environment doesn't turn around. Can't control others in the workplace but can better control how that impacts me from a stress perspective (or at least I tell myself that). As a cancer survivor, the health insurance piece and uncertainty of ACA and preexisting condition coverage weighed on the decision. And since I'm not particularly insurable from a life insurance perspective in the open market I felt couldn't forgo the group life insurance coverage I presently have for a couple/few more years. Thanks to you all for giving me the affirmation that I when I do make the leap, it will all be okay. Won't look back on this decision but now know that when I leap it will be with the comfort that I can do nothing from another job perspective or do whatever I choose... always with great advice available from this site and you all.

 

[davebarnes]

As a cancer survivor, the health insurance piece and uncertainty of ACA and preexisting condition coverage weighed on the decision.

One of the HUGE benefits of ObamaCare is that you cannot be denied medical insurance based upon pre-existing conditions. The only factors determining your cost are: geography, plan level, age, smoking.

ObamaCare is not going to be repealed. The GOPers have given up.

 

[HI Bill]

Can leave on my terms (without the juiced up separation benefit) anytime between now and then if environment doesn't turn around. ....since I'm not particularly insurable from a life insurance perspective in the open market I felt couldn't forgo the group life insurance coverage I presently have for a couple/few more years.

Glad to hear that you won't look back...just a couple of comments that you can't do anything with now. You don't really need life insurance at your age with your assets. The cost of living for your family goes down if you were to pass before them. Anyway, best wishes! Hope you can leave on your terms when you're ready, and that you don't wait too long.

 

[HighOnLife]

I won't repeat what everyone has said--if the numbers work, the numbers work!

But.
I would say, don't let the rush of the clock influence your decision.
If you choose not to, you can always retire later.

 

[broadway]

I would say, don't let the rush of the clock influence your decision.
If you choose not to, you can always retire later.

Yes, but he won't be getting the 60 weeks salary.
That is not an inconsequential sum.
Bird in hand and all that jazz.

Generally with a package there is a favorable disposition of RSUs.
The $700K may have vested immediately.
Doesn't sound like the OP looked into that.

The OP is 58. COBRA gets him another 18 months leaving him with 42 months until Medicare.

To me this was a no-brainer decision to leave while the leaving is good.

 

[HighOnLife]

Yes, but he won't be getting the 60 weeks salary.
That is not an inconsequential sum.
Bird in hand and all that jazz.

Bird in hand...true. But, who knows if he won't have a better offer/package down the road?

I think it's better to not make huge life decisions in a rushed state, often better to slow down and choose it when you're ready to, vs. when "it's" ready. Just my experience. It has got to work personally for the OP. Making a somewhat pressured decision to pull the plug could affect that.

I'd say if he was looking for an out and this situation fit like a glove, then BAM! He'd be on it. But it doesn't seem like that was the case.

 

[broadway]

Bird in hand...true. I'm not retired, so maybe I don't have the expertise to fully reply. But, who knows if he won't have a better offer/package down the road?

It's better to not make huge life decisions in a rushed state, often better to slow down and choose it when you're ready to, vs. when "it's" ready. Just my experience.

I have never been offered a package.

Others here have, and they seem to indicate that the first offer is generally the best.

I tend to think that packages do not appear out of nowhere and for no reason.

I remember the one time I was laid off from a major defense contractor.
There had been rumors swirling around for about a week or two.
And sure enough one day, I was called into my manager's office.

.

 

[Dtail]

I have never been offered a package.

Others here have, and they seem to indicate that the first offer is generally the best.

I tend to think that packages do not appear out of nowhere and for no reason.

I remember the one time I was laid off from a major defense contractor.
There had been rumors swirling around for about a week or two.
And sure enough one day, I was called into my manager's office.

.

I got lucky with a volunteered package and the first one is usually the best.