So, would you?

[ckelly78z]

While this a very tempting offer, I revert back to the OP "but when will it end" ? question. I brought up the "dangling carrot" scenario because my wife put up with this behavior from her idiot boss for years, who thought that for the right money, anyone could be bought, and coerced to do anything.

Sorry I came off a little strong on this subject, but it hits home.

 

[EarlyBirdly]

Walked away at what would have been the peak of my earnings...300k + annually.

The possibility still exists to go back and pick up where I left off. NAH! Not gonna' happen.

If I hadn't quit when I did it is an almost certainty I would be dead now.


The hands on the clock only move one-way. You can always get more money. You will never get more time.


Good Luck going forward.




El Hombre Pajaro

 

[kgtest]

I’ve posted here before with all of my situation particulars.

I Have my July 5th retirement date set, but have only told my staff, not my Board of Directors whom I work for. I’m good to go July 5th. I have enough.

But.

My CFO walked into my office Friday and told me (and I knew this (mostly)) that by leaving July 5th, versus December 31st - wait for it...... that I’m leaving $300,000 gross on the table (salary, bonus and Top Hat).

But when does it end? Wait til Dec 31, why not wait til next July when my pension goes up another 2%.

So. I can stay six more months for $300k (which is a lot) but miss the summer mountain home (it’s hot in Scottsdale) again. When I’m dying - will the $ matter?

WW you do?

Sigh.

I know guys that get forced out at 70 and they are upset. To each there own. How valuable is your time, and can you really relate it to a dollar ?
If you don't have much going on in terms of hobbies and enjoy work, stay... if you are done with the rat race, politics, and of course the non-passive income that comes with it...quit.

 

[Rianne]

The hands on the clock only move one-way. You can always get more money. You will never get more time.

El Hombre Pajaro

Cool quote.

 

[Dawg52]

At 65 with sufficient stash, I'd be inclined to walk away.

Agree. At 55 I would probably have to think about it. Having said that I left at 52 leaving decent money and not having a portfolio on the level of many here. But enough for me.

 

[ncbill]

Just my 2 cents...……..but I'd stand on my head in the corner for 6 months for $300,000! Good luck.

Mike

Ditto!

But I 'retired' earlier than planned and have only barely made it into the 7 figures club, so $300,000 extra would make a huge difference for me.

 

[CaliKid]

I don't know what your net worth is or how old you are but a sure thing $300k is hard to say no to... but what if January they say they'll give you $750k to work one more year?

 

[jollystomper]

In my view, a consideration of what % that 300K is of what you already have is a factor. If you have 1 million, increasing your stake by 20-30% (depending on taxes) for another 6 months may be worth it. If you have $10 million, a 2-3% increase may not be worth the lost time you'll never get back, particularly if your SWR is low.

At the time I left Megacorp, due to building and successfully turning over a project that had been in a dumpster fire, I walked away from six figures and what would have have been around 6% of what I had, had I stayed another six months. But I just felt that my time had become more valuable than that amount of money, and for my retirement plans in the long run - as I had no need to spend on anything major up front - it would make little difference.

Funny thing is, they sent me about 15% of that 6% amount after I left, a surprise bonus I was not expecting.

No one can provide you with a "right" or "wrong" answer, it is really up to you.

 

[pb4uski]

I’ve posted here before with all of my situation particulars.

I Have my July 5th retirement date set, but have only told my staff, not my Board of Directors whom I work for. I’m good to go July 5th. I have enough.

But.

My CFO walked into my office Friday and told me (and I knew this (mostly)) that by leaving July 5th, versus December 31st - wait for it...... that I’m leaving $300,000 gross on the table (salary, bonus and Top Hat).

But when does it end? Wait til Dec 31, why not wait til next July when my pension goes up another 2%.

So. I can stay six more months for $300k (which is a lot) but miss the summer mountain home (it’s hot in Scottsdale) again. When I’m dying - will the $ matter?

WW you do?

Sigh.

Question: If you leave on December 31 will you be leaving anything on the table? I suspect so.... if I right then the correct comparision is at you would leave on the table leaving July 5 vs what you would leave on the table leaving Dec 31, or any other date.

Your OP says salary, bonus and top hat. I wouldn't count the salary... that is what you are getting paid to show up and work from July 5 to Dec 31. P.S. If your CFO included salary then you need a new CFO.

Bonus is real but there is always a lag. Where I retired from our fiscal year was July 1-June 30, and bonuses were paid in mid-September... so under the best case you would be leaving 21% or more of your bonus when you resigned. Even if you stay until December 31, you'll probably need to stay some additional time until the bonuses are paid.

I'm guessing that the top hat works similar to the bonus.

 

[Canoesmith]

With my particulars from another post here...

In my view, a consideration of what % that 300K is of what you already have is a factor. If you have 1 million, increasing your stake by 20-30% (depending on taxes) for another 6 months may be worth it. If you have $10 million, a 2-3% increase may not be worth the lost time you'll never get back, particularly if your SWR is low.

At the time I left Megacorp, due to building and successfully turning over a project that had been in a dumpster fire, I walked away from six figures and what would have have been around 6% of what I had, had I stayed another six months. But I just felt that my time had become more valuable than that amount of money, and for my retirement plans in the long run - as I had no need to spend on anything major up front - it would make little difference.

Funny thing is, they sent me about 15% of that 6% amount after I left, a surprise bonus I was not expecting.

No one can provide you with a "right" or "wrong" answer, it is really up to you.

OK. I'm 58, DW is 57. Both in good health. Parents both lived to mid 80's.

I'm retiring on July 5th of this year. That decision is made (although not announced).

I've got my official Defined Benefit numbers from my actuaries - and here are the two choices I am considering.

Pension annuity of $7214/mo with 100% spouse survivorship but NO Cola or
$1,426,000 in lump sum that I can roll over into my Lincoln 403b at fixed 3.5% to start with.

One of the "draws" of the lump sum would be my ability to control taxable income for ACA subsidies - but that is for 7 - 8 years, with 30 years of retirement ahead, so it seems like that reason alone could be short-sighted.

Even with the 100% survivorship my annuity payout appears to be over 6% - so that seems a good deal. But the lump sum is very tempting.

Additional pertinent info. Have another pension that I plan to take in late 2025 that will pay $2000/mo with cola
and If I delay my SS until I'm 70 - my DW and my combined estimate for SS will be ~ $60k/yr.

I have about $1.2M in other monetary/investment assets right now - and absolutely NO debt of any kind with a retirement baseline budget of $72k.

Knowing you are all very good at this I'd love your thoughts - Annuity or Lump Sum?

I appreciate your comments. I have waffled both directions over the past few weeks.

 

[Canoesmith]

Question: If you leave on December 31 will you be leaving anything on the table? I suspect so.... if I right then the correct comparision is at you would leave on the table leaving July 5 vs what you would leave on the table leaving Dec 31, or any other date.

Your OP says salary, bonus and top hat. I wouldn't count the salary... that is what you are getting paid to show up and work from July 5 to Dec 31. P.S. If your CFO included salary then you need a new CFO.

Bonus is real but there is always a lag. Where I retired from our fiscal year was July 1-June 30, and bonuses were paid in mid-September... so under the best case you would be leaving 21% or more of your bonus when you resigned. Even if you stay until December 31, you'll probably need to stay some additional time until the bonuses are paid.

I'm guessing that the top hat works similar to the bonus.

CFO and I were working on 2019 budget to date numbers and the projected savings of me retiring was $300k, of which the salary is one component - and I ran with that number in my head. Yes, salary is paid for me being there and working. The Bonus is to motivate me to do a very good job, and the Top Hat is paid annually - to keep me to the end of each year. (Weird rules for 501c3’s). Both Bonus and Top Hat are paid on December 31st of 2019. Bonus is dependent upon performance, buts it’s always been paid because, well, I do a good job for them - but it’s a lot of work and I’m ready to be done. That 300 number got me waffling again - that’s all.

I really appreciate everyone’s thoughtful input. It is helping.

 

[redduck]

I walked away in similar situation albeit my 6 months extension would have been worth no greater than $150k. I was 53 but I was sure the job stress was slowly shortening my life. That was 3+ years ago and I am healthier, happier, and wealthier (my net worth up more than 600k (400k due to house appreciation, 200k due to the positive stock market)).
.

Suppose it went the other way: your net worth was down $600K in that 3+ year period due to declining home values and a declining stock market?
Same advice given?

 

[pb4uski]

CFO and I were working on 2019 budget to date numbers and the projected savings of me retiring was $300k, of which the salary is one component - and I ran with that number in my head. Yes, salary is paid for me being there and working. The Bonus is to motivate me to do a very good job, and the Top Hat is paid annually - to keep me to the end of each year. (Weird rules for 501c3’s). Both Bonus and Top Hat are paid on December 31st of 2019. Bonus is dependent upon performance, buts it’s always been paid because, well, I do a good job for them - but it’s a lot of work and I’m ready to be done. That 300 number got me waffling again - that’s all.

I really appreciate everyone’s thoughtful input. It is helping.

Just wondering if you might be able to have your cake and eat it too. Offer to be available as needed for consulting on the transition from July to December for a retainer equal to 1/2 of your projected 2019 bonus and top hat... paid in 6 installments at the end of July through December. For any work you do during that period you would get 125% of your current hourly rate in addition to the retainer. A win for you in that you capture the value that would be left on the table.... a win for them in that they have a smooth transition and avoid paying your full salary for the second half of the year.... they only pay for what they use.

 

[pb4uski]

.... Pension annuity of $7214/mo with 100% spouse survivorship but NO Cola or
$1,426,000 in lump sum that I can roll over into my Lincoln 403b at fixed 3.5% to start with. ....

Compared to immediate joint fixed annuity rates on immediateannuities.com that is a pretty sweet pension benefit... a SPIA for a 58 yo M/57 yo F in AZ for a $1.426m premium is only $6,024/month.

 

[robnplunder]

Suppose it went the other way: your net worth was down $600K in that 3+ year period due to declining home values and a declining stock market?
Same advice given?

Yes, provided that before starting RE, the firecalc numbers were solid. If one consider what can go wrong to the extent of stock market up and downs, the person shouldn't pull the trigger. We see those people coming to this forum asking for advice and sometimes I just want to reply "you are not an RE type of person, period. Enjoy working and watching the money grow. That is your happiness.

 

[Stormy Kromer]

I ER'd at 50 after 30 years at a job I didn't like.


Saying that, there ain't a heck of a lot I couldn't put up with for $300k for 6 months of putting in my time.

 

[zedd]

You're not ready to leave.

Take a 90 day sabbatical (with salary and benefits) effective April 5. Hell, it's already hit 100 degrees in Scottsdale by then. Return to work July 5 with your decision to stay or go.

 

[street]

I would stay.

 

[CaptTom]

Probably a different order of magnitude, but I went through the same kind of thing.

Stay until your birth month, that's an extra year which bumps up your pension. Stay until June and you get the whole year's worth of vacation pay (5 weeks, in my case.) Stay until your hire month and up goes the pension again. Stay through the end of the calendar year and... I don't even remember what, but it was something.

Rinse and repeat. I'd have been there forever.

When you've done the math, and you're ready, you just have to ignore all of that OMW (one-more-whatever) stuff.

 

[statsman]

That was probably the only good thing about having been laid off from my 30+ year position with the company: I didn't have to decide when to leave. Good chance I would have stayed on longer than I needed to.

Fortunately, I made it long enough 6 months prior to the layoff to qualify for retiree medical benefits at 55+ (a bit better rates/deductibles/max OOP than ACA, but nowhere near as good as it was prior to ACA) and not see my pension get reduced by 60%.

 

[Canoesmith]

Quick update. I pitched to my board to stay until 12/31 if they allow me to telecommute from my mountain home throughout the summer. I meet with a governing committee tomorrow and this will be one item on the agenda. Im thinking it’s about 50/50 right now. They are a good lot, so I am hopeful.

I’ll update soon when I know.

 

[RockyMtn]

I told my MegaCorp that I was leaving about 20 months before I left. They tried to keep me around but I was pretty adamant. Ended up with a two year consulting/non compete deal that turned into five years. Got all of my options to vest and did a bit of work for them along the way. It worked out good for both sides.

Since the "consulting agreement" ended they have still called me for arbitration, expert witness, etc and I actually enjoy getting back in the 'game' on occasion.

Funny this post came up today.....almost ten years gone and they called me to be an "expert" on an arbitration today! Now just have to figure what to charge as a fee. Let's see...I made X when I worked there and now with annual raises, value of options, etc, etc and this that and the other thing it is probably going to be four figures per hour.

And most of it I can do in my gym shorts and t shirt at the computer before I go play golf!

 

[skipro33]

If you didn't need the money before making your July date, then you don't need the money.

If $300K is just a number as far as the life style you wish to retire into, then it's not worth the paper it's printed on compared to your precious time.

 

[Koolau]

Discussed elsewhere on the forum, I left about 18 months too early to get a "package" (I didn't know it was coming - and I'm glad I didn't.) Looking back with the slightest pang of "what if?", I then asked myself this questions: "If you have 'enough', how much would you trade days or weeks or months (years?) of your life for? Unless you need the money to meet your FIRE goals, why would you trade even one day? (Full disclosure, I COULD have been bought at SOME price - but not what the generous package turned out to be.)

Only OP can make this decision. My suggestion (never advice) is to decide if the extra money is worth the "life" traded for it. YMMV

 

[Canoesmith]

Yeah

If you didn't need the money before making your July date, then you don't need the money.

If $300K is just a number as far as the life style you wish to retire into, then it's not worth the paper it's printed on compared to your precious time.

Yeah, I know. I’m designing a large garage and shop that has gotten a bit out of hand size and feature wise, and the “extra” money started to be appealing.

It’s hard to let go. Very hard. But it will happen. There will be a 19 departure!