Just Told "My Services Wouldn't be Needed Anymore"

[haha]

I think the worst thing a talented young person can do is head for the hills. OP is obviously good at what he does. He should stay with the big time and just roll 'em once more. If he only does a few iterations at $600k/pop, he is still OK. And he may strike paydirt at any time. This is way less likely in Nowhere, USA.

Ha

[citrine]

Sorry to hear that Banker...but maybe you will look back one day and see that it was a blessing in disguise. WTG on the 600K, take some time for yourself and see what happens next.
As for the comment that 30 is too young to head for the hills....I did it at age 35 and have not looked back But it is all dependent on what you want from this one life that you have.

[explanade]

Well, bankers are very well paid but their value to society relative to their compensation is dubious.

[samclem]

Quote:

Originally Posted by explanade Well, bankers are very well paid but their value to society relative to their compensation is dubious.

Very nice. Your opinion is noted, but the market has spoken.

[imoldernu]

Time to take a good look at the financial industry... and the future. At your age, plenty of time. I'd take a look into the educational system to wee where the long term money is looking for employment... major. masters and phd program growth in places like Harvard or UCLA... and to see if there's a fit.
To do as well as you have already, shows the ability is there... If you can match that with the right employment, it's a marriage made in heaven.
Might take a look at this to see the direction education emphasis is taking.
Doesn't mean ya have to go back to school, but an indication of the disciplines where planners see future needs.

nsf.gov - S&E Indicators 2012 - Chapter 2. Higher Education in Science and Engineering - Undergraduate Education, Enrollment, and Degrees in the United States - US National Science Foundation (NSF)

[Calico]

BankerWithaBrain,

I'm sorry to hear about the job loss. No matter how much of a cushion we have in place when these things happen, they still come as a shock.

I wish you the best of luck with whatever path you choose, whether that be taking a break for a while, or looking for another position right away. With your financial cushion you don't have to rush into anything, and that is a blessing in itself.

[Sesq]

I am sorry to hear of the hardship.

Just out of curiosity, what is your plan?

My wife and I often talk about this since my job is a stressful thing. I am a specialist in the LCOL hinterlands, no comparable options, so our base plan would be to put the house on the market ASAP (timing would depend on where we are in the school year, if its only another month or so to let the kids finish out, we'd wait), my wife would get some cash employment (retail, whatever) while unemployment and severance come in, and dust off her professional certification (education based). Worst case we'd sell and move into a small rental to cut costs until the path forward comes together.

I have a brother who got laid off and just, shut down. He's been kind of a mess since then (coming up on 5 years).

[Options]

Quote:

Originally Posted by Bankerwithabrain Another job gone. 30 years old, single, and $600K of mostly liquid net worth. What is the next step in life? --- edit --- title should have said "your services..." as "my services..." in quotes wouldn't make any sense...

You can blame the wh*res in human resources for that euphemism (I work in the field so I can say that--swear I wish I had time to write that book I keep threatening to: "Don't Get Mad, Get Even: Secret from the HR Department".

Here's an off-the-cuff excerpt from a fantasy chapter called "Breaking Up is Great to Do!"

1) First, realize there's no such thing as a "good job" anymore, no matter how good the one you lost was. Bosses change, companies change, and you must change. Continually.
2) Second, realize they've actually done you a favor. Now you have an excuse to go out and find another job that pays you a minimum 40% more. You'll rarely be able to snag that kind of deal staying with your current company.
3) Having saved $600K by 30, you've obviously got the intelligence and other competencies/skills that most employers would pay highly for, particularly in Finance.
4) Know you're also smart enough to go out, get a new job, negotiate a higher salary, and give yourself a raise besides !
5) Never, ever, ever, take the first $ offer when offered a job. Counter at least 20% higher, with your target set at 40%.
5) Please say you haven't signed your current co.'s severance agreement yet. No matter what, never take the first severance $ they offer.
4) Take it home, next day, call your (ex) boss, or whoever, and tell them you need 6 months more pay, 6 months more COBRA continuation, and 6 months outplacement (for support with your job hunting) to sign the agreement.
5) They'll balk (they always do). BUT, counter! You may very well come away with more money from this place that has just treated you as disposable with more $, and $ saved from their paying your COBRA.
6) Finally, don't get mad. Get even. By using this situation to create something even better for yourself.

[comicbookgujy]

You have $600k saved at 30 years old, you're ahead of the game.

I was layed off at 24 years old and it was the best thing that ever happened to me. I saw a lot of sad people that were in their 50's and they were crying because they didn't have anything saved and didn't have any other options.

You're 30 and have tons of money saved. Just consider it a free vacation.

I'm 40 years old and I wish they would tell me my service wasn't needed anymore because of 15 straight years of working ,I need a break.

Just consider it a break. Afterall, that's why you saved all that money, right?

[ChiliPepr]

Quote:

Originally Posted by Bankerwithabrain Another job gone.

Sorry to hear this.. where are you located?

[jetpack]

10 years ago, at 31 years old, I had about 300K saved. I quit my job at the bank and went on my own ( granted, I already had projects started ) .. I figured I had 10 years of 30k spending even if I couldn't earn a dime. I did move from NYC to a place more in the country with a lower cost of living.

Anyway, I've been self employed for the last 10 years. The projects were a complete success, and I'm looking to sell my business now and fully retire.

Good luck to you, you have options

[eytonxav]

I'd say your next step is to file for unemployment and then take comfort that you have prepared well for a rainy day. Good luck in what ever path you choose.

[RetireAge50]

At age 30 the bank I worked for merged with another and I was out. Was fortunate to immediately get another job.

If you take a year off you will likely have to work 2 extra years on the back end (power of compounding). But you already have the financial game won ($600,000 age 30) as long as you keep it managed.

[captain3d]

Just got laid off a few months back (again) myself. I didn't really start saving until I was 30. I have been through 10 jobs since and I am now 46. Every layoff has been somewhat distressing but ultimately led to better things than if I had stayed with the 'lucky ones'

I can now say that if I had stayed in my original job I would have had to work at least 10 more years to get FIRED, but if I want I can can be FIRED today :-)

I am still annoyed about the last layoff but not as much as I am enjoying everything else without having to go into work.

phil

[Milton]

Quote:

Originally Posted by haha I think the worst thing a talented young person can do is head for the hills. OP is obviously good at what he does. He should stay with the big time and just roll 'em once more. If he only does a few iterations at $600k/pop, he is still OK. And he may strike paydirt at any time. This is way less likely in Nowhere, USA.

Good advice, given that the OP says he enjoyed his last job.

Quote:

Originally Posted by Options Never, ever, ever, take the first $ offer when offered a job. Counter at least 20% higher, with your target set at 40%.

How does that work? You can't subsequently increase your counter-offer (i.e., from 120% of their opening offer to 140%) and retain any credibility. If you want to wind up at +40%, surely you have to start there, or indeed higher.

[Masquernom]

Hard to imagine you can negotiate a severance package from a Megacorp during a big layoff. You're basically getting fired. The package is just offered to buy off your unemployment and stop you from suing, etc.. Our HR department would just tell you not to sign if you're not happy with the offer I believe. But I just might be wrong...

As training for our procurement people, they get sent to Walmart to buy something cheap like a bottle of water and try to negotiate a lower price at the checkout. Guess that's the right attitude to take. If we have another layoff next year, I might give it a try!

[IlliniProgrammer]

Quote:

Originally Posted by Bankerwithabrain Another job gone. 30 years old, single, and $600K of mostly liquid net worth. What is the next step in life? --- edit --- title should have said "your services..." as "my services..." in quotes wouldn't make any sense...

You don't have enough to retire yet, but you are doing extremely well for 30.

Don't know if you're coming from IBanking, commercial banking, or some other area, but you have a lot of options. Tell me about your exact background? IBD? Commercial Banking? Research? Sales/Trading? Are we talking a firm more like GS/MS/JPM or more of a middle-market firm or boutique?

If you're IBD (which is what I'm guessing given your username and savings), you may want to be looking at opportunities in PE or perhaps also at an MBA program.

[daylatedollarshort]

Quote:

Originally Posted by Masquernom Hard to imagine you can negotiate a severance package from a Megacorp during a big layoff. You're basically getting fired. The package is just offered to buy off your unemployment and stop you from suing, etc.. Our HR department would just tell you not to sign if you're not happy with the offer I believe. But I just might be wrong...

A lot of managers at my last employer didn't always know or follow the HR rules and it left the company vulnerable, so HR / legal would sometimes negotiate an increased severance package rather than risk a lawsuit with a roll the dice jury trial.

[Options]

Quote:

Originally Posted by daylatedollarshort A lot of managers at my last employer didn't always know or follow the HR rules and it left the company vulnerable, so HR / legal would sometimes negotiate an increased severance package rather than risk a lawsuit with a roll the dice jury trial.

Bingo...

[Markola]

First, Banker, I can honestly say I know how you feel because it happened to me. TWICE! This June: "We don't have confidence in you" (Ouch. Oh, and I didn't like this job or your lame absentee management anyway) and in 2009 "The economy is bad and we are reorganizing" (Great, time for an adventure and move to Washington, DC.) Both times I landed on my feet in four months with much happier and better-paying jobs with a bigger title. So that's one choice you can make, i.e. to simply stay positive and get back on the horse as fast as possible. However, when it happened the second time my attitude toward work took a fundamental hit along the lines of "Hey, I'm trying hard here, taking on management responsibilities, keeping my nose clean and moving up the ladder for what I thought were all the right reasons trying to do some good with my career (I work in conservation nonprofits) and yet this keeps happening. I wonder if there is a better way?". I had time to read this summer and found this forum along with some excellent blogs, which I commend to you: Mr. Money Mustache (he, wife and kid retired at 30 with the same amount of money you have); jlcollinsnh.com (older and really good with money and will sometimes answer your questions.). Check those out and you might develop some new directions and possibilities for yourself as I have. I now plan to retire in 4 years, probably just long enough to become self employed, free from dependence on organizations and, therefore, "un-firable.". On the other hand, who knows? Good luck!