Early out crossroads

[IMATERP]

I’d be clearing out the personal effects (from my office) as we speak. There is no question...here..

[kch130]

Thank you everyone for the kind responses.

To answer a couple questions, my work uses the seniority system and, while I won't be in danger of a layoff, there are others below me who are. In fact, one of the reasons behind the early-out package was supposedly to lessen the odds of furlough if enough senior people came off the top of the list.

It is funny, I have been following a work thread where various people chime in with their rationale. We have mandatory retirement at 65 and I'd estimate that only 10% of the respondents are leaving. The vast majority say they can't make the numbers work even 2-3 years early, the youngest commenter was 58; I am thankful to be in a different position.

The leading negative comments revolve around a lack of bankruptcy protection if our company goes Ch11 before the 3 years of payments are made. I'm willing to take the risk. While it would be a bummer, I'd still be okay.

Will be making the official decision soon. Thanks again for the kind comments.

[Rowej]

I don’t understand the logic of others worrying about lack of bankruptcy protection. If the company declares bankruptcy, they are probably out of a job as well.

Quote:

Originally Posted by kch130 Thank you everyone for the kind responses. To answer a couple questions, my work uses the seniority system and, while I won't be in danger of a layoff, there are others below me who are. In fact, one of the reasons behind the early-out package was supposedly to lessen the odds of furlough if enough senior people came off the top of the list. It is funny, I have been following a work thread where various people chime in with their rationale. We have mandatory retirement at 65 and I'd estimate that only 10% of the respondents are leaving. The vast majority say they can't make the numbers work even 2-3 years early, the youngest commenter was 58; I am thankful to be in a different position. The leading negative comments revolve around a lack of bankruptcy protection if our company goes Ch11 before the 3 years of payments are made. I'm willing to take the risk. While it would be a bummer, I'd still be okay. Will be making the official decision soon. Thanks again for the kind comments.

[aja8888]

Quote:

Originally Posted by Rowej I don’t understand the logic of others worrying about lack of bankruptcy protection. If the company declares bankruptcy, they are probably out of a job as well.

And probably with no special package.

[Gavin60]

A bird in hand is worth two in the bush. I would take it. Those who dont take it may eventually be targeted for layoff or termination. At this point you cant trust them anymore to be a soild employer till you decide to go on your own.

[BarbH29]

Take it! That is a nice severance! It doesn't mean you don't work in the future at something you really want to do and the hours you want to do it! I'm sure you will feel mentally very good about it!

[SpinDoctorTX]

Quote:

Originally Posted by njhowie Take the package - don't over analyze. You will thank me 12 months from now. Congrats!

+1

[indiajust]

always take the first bus. each package offered later will be progressively less valuable. Lots of cake and tears with first bus. Not so with the later exits. Just go.

[LimaPop]

Take it and run, no deal better than that....

[Buckeye]

Quote:

Originally Posted by kch130 Hello All, 52, DINK, always had an unwritten goal to FIRE in the 53-55 timeframe. Due to COVID, my company just announced an early-out package. Three years at 2/3 pay plus two years of no-cost healthcare. I must decide in two weeks to apply for this or not. After building a spreadsheet, the numbers are close to a wash whether I stay to 53 (and work hard) or go now. The greatest hit is in lost future savings; about $160K before growth. I made the "mistake" in also comparing the early-out to instead staying and working 2/3 the hours until age 56. That's over $400K in lost savings plus the value of not touching funds until later. Our monthly expenses are $6500 and we have $3.4M across all accounts, mostly 401k and a mix of Roth & Traditional IRA. I have a small pension that will kick in immediately plus a USAF pension & TriCare that start at age 60. My biggest concerns are with buying healthcare from age 54-59 (which adds aprox. $1200/mo to our budget), learning about tax strategy, and paying for pop-ups, like a kitchen remodel or a new roof. The other one is that simple, but human, desire to not screw up such an important decision. All of my reading and FIREcalc trials indicate I'm good to go, yet, now that the moment is at hand I am mildly overwhelmed at the reality of the moment I've dreamed of actually being here. On the other hand, I feel mentally ready and do hope this proves to be the right choice. I would appreciate any advice. While I thought I was prepared for this, I suddenly feel like there is so much I don't know.

If you are a veteran, get your health care at the local VA facility. I have been doing that for the last 9 years and I have no complaints.

[Maidensong]

My DH suggests you might consider taking the package and if you're concerned about not being able to add to your nest egg for a few years, it might be time to take another job--something you'll enjoy doing, of course. It's not bad to have a "coast out" position to end up your working years.

[Live Large]

Sounds like a really good deal ~ if ER is the goal the sooner the better - take it! Understand the mental but you’ve prepared thought over & over now it’s your best opportunity- Many here pulled the plug early 50’s ~ some earlier few little later - Time won’t wait

[brett]

Grab it fast before they change their minds or they reach the target employee take level.

[RxMan]

I would be adding my official last day to the Class of 2020 thread if I were in your shoes. Good luck with whatever you decide but I’d take that generous package.

[dadu007]

I think you're taunting us. ;-)
I'm 59.5 and still working (two kids and college).
TAKE IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Dd852]

I was in a similar position - pushed out at 52 with a big package that really bridged to my mental out date of 55-56. I’m now 60 and have loved the last eight years, no question. The downside was it not being my choice. The upside was a gold-plated package. It seems to me you have the best of both: you can make the positive decision to take the offer and fly free.