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Look for new job or ride it out
Old 01-31-2022, 06:50 PM   #1
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Look for new job or ride it out

Hello All. So recently my dividend income of $41000 covers my expenses in a MCOL city in Canada. This is on a $1.9Mil portfolio and paid off house. We are frugal, my hobbies are cheap (tennis, cross country skiing and biking) and with COVID our plans to cheaply slow travel are nill and void.

I am in a job now for fifteen years. Due to recent management changes, I get the vibe I may not be around much longer....although my new boss gives that vibe to everyone on my team. As a result, recently I started applying for new jobs and have had a couple nibbles but I'm only half heartedly looking. I'm a CPA in Canada so in relatively high demand.....BUT part of me really just wants some time off. If I was let go from my position I would get around 100k in severance based on my age, precedence and my position in the company. This is part of the reason I'm only half heartedly motivated to look for a job.....as a new job would mean walking away from this lotto ticket that might pay off.

On the other hand I know how hard it would be to find a senior finance job at my age of 47 after being let go. It would be hard to explain that to a new employer....although not really sure I even need to work at this point but I feel abit to young to fully retire. I believe working part time in my profession would be relatively easy (part time tax prep, part time controller gigs through recruiters, etc) I wish taking absences from white collar jobs was more accepted but it is what it is.

So I guess is anyone else in this position? Basically ready to FIRE with long term tenure at a job and secretly wanting a "going away" present while also considering other opportunities and confused what to do?
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Old 01-31-2022, 06:57 PM   #2
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Never been in a position for that gift of a massive severance. But maybe you could earn that 100k severance if you just moved on? Ask for a 40k a year raise, invest all that into the down market +10% discount puts you at 44k and in < 2 yrs you will have the equivalent of the severance. Or, just suck it up and ride it out. I would say another year or two of saving and you could quit for good on your terms...but that's only because my goal is to FIRE at 50 with 2.5MM, so that is my age and my number...but I have 9 more years to go. You have done well and are very close if not there. I don't know how retiree healthcare works in CA.
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Old 01-31-2022, 06:59 PM   #3
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Canada = not the big medical problems retirees face in the US.
I'd take the hint and retire from the daily grind if they let you go, and take any short term gigs or part time work that you need to keep yourself sane.
Congratulations on being where this is an option!
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Old 01-31-2022, 07:59 PM   #4
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I'd hit the road, Jack. I say that because it sounds like you want or have the desire to move on. With your career you should be able to go on your own and do that type of work. It would be something you could do part time for many years to come if you wanted too.

Good Luck.
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Old 02-01-2022, 04:10 AM   #5
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Great need for a financial advisor
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Old 02-01-2022, 05:04 AM   #6
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Stay with your own retirement plan. Stick it out and if they axe you enjoy the $100k and retire or consult. Don’t sweat it.
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Old 02-01-2022, 05:12 AM   #7
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You're the man in the middle. Too young to fully retire--but been on the job long enough.

Hang in there and see what direction the company goes. That is unless management makes life miserable day to day.

You have the credentials to work for yourself--and work at your pace. Keep in close contact with your present clients and others in your profession that work at other firms. At one point, you may need them.
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Old 02-01-2022, 05:13 AM   #8
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Instead of waiting or making a decision to leave, why not talk to the boss and ask if you are in the mix for layoffs and what options they might offer you if you stepped forward now for the axe.

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Old 02-01-2022, 05:14 AM   #9
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Quote:
Originally Posted by JuneAmara View Post
Great need for a financial advisor
Why? It appears the OP is asking whether he should go now or wait for a severance package, not about finances or investments. Emotional, not a financial question.
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Old 02-01-2022, 07:57 AM   #10
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Due to change in management was waiting for "the day" while packing away paychecks and enjoying 5 weeks of vacation on boat and other travel/activities. Was caught in corporate downsizing 18 months before our FIRE date at age 61. No debt, daughter graduated college and my wife could retire the following year. Took 3 months updating our retirement plan, meeting with accountant/financial planner and then my wife gave her notice with free lifetime health insurance. Our annual expenses are $40K/US. Got to enjoy about 16 months of retirement before Covid.


The OPs much younger age and no clarification of his "WE" situation makes his situation different. After 15 years I hope he can schedule prioritize some time off now before tax season gets crazy to sort out his final plan. Option 1-Staying with current employer for severance package while enjoying additional vacation time vs Option 2-negotiating better package while employed will help replace the severance package in 3-5 years.



How well is your portfolio performing performing recently due to worldwide issues? Take the winter to decide and put your plan in motion. At 47 what else are you going to do during Covid?
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Old 02-02-2022, 07:03 AM   #11
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Due to change in management was waiting for "the day" while packing away paychecks and enjoying 5 weeks of vacation on boat and other travel/activities. Was caught in corporate downsizing 18 months before our FIRE date at age 61. No debt, daughter graduated college and my wife could retire the following year. Took 3 months updating our retirement plan, meeting with accountant/financial planner and then my wife gave her notice with free lifetime health insurance. Our annual expenses are $40K/US. Got to enjoy about 16 months of retirement before Covid.


The OPs much younger age and no clarification of his "WE" situation makes his situation different. After 15 years I hope he can schedule prioritize some time off now before tax season gets crazy to sort out his final plan. Option 1-Staying with current employer for severance package while enjoying additional vacation time vs Option 2-negotiating better package while employed will help replace the severance package in 3-5 years.



How well is your portfolio performing performing recently due to worldwide issues? Take the winter to decide and put your plan in motion. At 47 what else are you going to do during Covid?
You make a good point about asking his employer for more money. It never hurts to ask, and no better time. I asked my old employer if they could bump me up and they gave me a $7/hr raise to stick around...but in the long run I was able to get a $15/hr increase by leaving, so I left. I admit the new job isn't much better than the old, but at least I am getting paid much more so my LIFE has a better quality overall and I can save more for the future.

Money isn't everything but it sure helps. The new job isn't stressful but I've certainly had better management at most other jobs. They say people quit there boss, not their job and there is some truth to that.

It's a great market...and I've found once you start looking around at least for me in IT the recruiters basically line up to your door finding opportunities. I've currently had a dozen or so presented to me recently and taken a couple interviews to just see what is out there and have one more lined up. All but one would be similar pay, with the third being just a tad more money overall. I might reset and just ask for another $5-10/hr on my next cycle of interviews. An extra 7-10k a year never hurts and makes the waiting game easier.
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Old 02-02-2022, 04:53 PM   #12
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Originally Posted by accountingsucks View Post
Hello All. So recently my dividend income of $41000 covers my expenses in a MCOL city in Canada. This is on a $1.9Mil portfolio and paid off house. We are frugal, my hobbies are cheap (tennis, cross country skiing and biking) and with COVID our plans to cheaply slow travel are nill and void.

I am in a job now for fifteen years. Due to recent management changes, I get the vibe I may not be around much longer....although my new boss gives that vibe to everyone on my team. As a result, recently I started applying for new jobs and have had a couple nibbles but I'm only half heartedly looking. I'm a CPA in Canada so in relatively high demand.....BUT part of me really just wants some time off. If I was let go from my position I would get around 100k in severance based on my age, precedence and my position in the company. This is part of the reason I'm only half heartedly motivated to look for a job.....as a new job would mean walking away from this lotto ticket that might pay off.

On the other hand I know how hard it would be to find a senior finance job at my age of 47 after being let go. It would be hard to explain that to a new employer....although not really sure I even need to work at this point but I feel abit to young to fully retire. I believe working part time in my profession would be relatively easy (part time tax prep, part time controller gigs through recruiters, etc) I wish taking absences from white collar jobs was more accepted but it is what it is.

So I guess is anyone else in this position? Basically ready to FIRE with long term tenure at a job and secretly wanting a "going away" present while also considering other opportunities and confused what to do?
I live in Canada and was in a similar position, but older-58. Pre covid. Senior management-IT. 24 years.

First thing i started to do was speak to colleagues in my industry who had gone through the same thing with various employers in order to get a recommendation for a good employment lawyer-fee for service not contingency. I wanted to to be ready. The day came eight months later and I was more than ready. It was akin to winning the lottery for me.

The second was trying to get a handle on what a good settlement is and vs a mediocre or poor one. A good one was 20-24 months salary...but salary based on the average of the past several years INCLUDING bonuses and including the value of all company benefits. When the time came I hit the dial button and sent the company proposed termination package to the lawyer. He did the negotiation. I just about maxed out on separation. All my options immediately vested and were good for a max. of two years.

Had a great lawyer who, at the very last minute after we had agreed to terms with my employer, negotiated that his fee amount would be added to the separation agreement amount. Also the monies would be paid out over two years for tax efficiency, CPP purposes, and benefit continuance. Avoid salary continuance if you plan to find another job. Lawyer advised me to register for EI. I did. Two years later I started to claim...for about 50 weeks. Mind you, half of it was taxed back but it was the first time after paying in for years that I had ever made a claim. We lived well on those monies for four years, then took my unreduced DB pension.

I spent time understanding the DB plan. I had 25 years in and was vested so this may not apply to you or you may not have a DB.

Then updated our understanding what we needed to lived on. Took a tape of our cash burn over the past three years. Then projected what we would need adjusted for error and inflation. I used a financial package like retireware but I see that Morneau Shappell (sp) have something like it on their web site that is available to all. You may have access to something similar in your environment.

We reviewed our tax position. Met with the acct. and did some go forward tax planning that resulted in reducing our go forward tax.

A year prior we fired our stock broker (churning), fired our fee for service bank FA and started to shop for a new one. Found one and have been pleased with the firm for the past 10 years. All in preparation of early retirement, potential job loss.

At the same time we started to think about what would retirement look like. For us...downsizing to lock and leave, then lots of international travel.

I thought that I might do some consulting. After six months I no longer even considered that. I felt so good being out the business that I had been in. Plus...lifestyle and travel plans had kicked in. But...I was older.

Good luck to you. Think of this as a significant opportunity rather than an unhappy event. Because it really is.
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Old 02-02-2022, 05:21 PM   #13
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Old 02-02-2022, 06:49 PM   #14
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Thank you for sharing. I've been in a similar situation. That management of the organization I work for has been horrible: News worthy scandal type horrible. Nearly five years ago I saw the writing on the wall, and May 2022 will be the original date of my planned 5-year retirement (planned at 45 to FIRE at 50). However, I've decided to remain for another year due in part to the likelihood of a severance package. While colleagues are delighted by my ability hamstring upper-management, I'm hoping the rabble rousing will improve my candidacy for a severance package as part of the next round of cuts. Even new management will want to get rid of troublemakers, right?

My only advice when it comes to consulting is to having experience with that part-time consulting work before leaving your full-time job. My guess is that you have loads of experience, but that's something I started doing as soon as I decided on a departure date. While I had done a bit of consulting previously, I've spent these past years building my base of clients and services. At this point, I earn more part-time consulting than I do at my full-time job. So walking away from my full-time job isn't an issue anymore, but the lure of a 1-year severance is enough to keep me in the mix for another year of full-time work. Plus it gives me another year to grow the portfolio, so a win-win.
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