Layoff Time Blues....

[lem1955]

I left my big job - privately held manufacturing company at 56 and went to work for a non-profit part-time at 30% of the pay I had been earning. It was enough to pay the bills since I too had no debt. It was fun because I was learning and liked the people, though I did have to get used to a lesser workspace and computer. I stayed four years and then retired....until another non-profit recruited me for another part-time position. I stayed there another four years though I was FI and didn't need that job. I have no regrets about earning less the last eight years of my work life.

 

[getwilde]

Depending on your annual expenses, you may not need to w*rk again. In his book "Die With Zero," Bill Perkins suggests that chronic savers (like us) wait too long to move from the Accumulate stage of life to the De-Accumulate stage. He points out that whatever money is left over after we're gone represents excess years spent working unnecessarily.

 

[Gumby]

Depending on your annual expenses, you may not need to w*rk again. In his book "Die With Zero," Bill Perkins suggests that chronic savers (like us) wait too long to move from the Accumulate stage of life to the De-Accumulate stage. He points out that whatever money is left over after we're gone represents excess years spent working unnecessarily.

Money is not the only reason I worked; I actually enjoyed my various jobs. They were all interesting and intellectually challenging, and gave structure and meaning to my days. And, for the most part, I felt that I was contributing to society. But, by the time I was 60, I had enough money and a waning amount of time, so I left to pursue other things that are also important to me. Even if, as seems likely, I die with a large portfolio, I will not regret my working days.

 

[NeilDH]

I'm in a similar situation, also. My (and my wife's) "layoff" last year was voluntary though we needed to get out while the getting was good. I'm 54 now. Portfolio is at $1.9M as of today (after this week's dip). I have company stock being paid out over five years, but I often act like I won't have that because its value is by no means guaranteed. FireCalc and other calculators have us looking good, if not perfect. We've decided not to look for FT w*rk. Sometimes it's scary, but we really don't want a new boring job. Sometimes structure is difficult to build, but somehow I manage to do it (I have to keep reminding myself). We have enough in taxable investments to get us through 59.5, though I am considering 72t and certainly our Roth contributions if I don't want to sell all those investments in the next five years. I could get a little side work (I'm exploring tax prep work) to provide a bit of income. All this is a way of saying, for you, it's looking pretty good, and you don't have to rush into anything -- you can be very selective about what work you do, if you even do it. The structure issue I find is something to have to work through, as well as finding a purpose -- but it's also a nice high-class problem.

 

[armor99]

Thanks everyone for the advice and well wishing. The problem I am having is a strange one. So for me to retire early, I need reverse roll over my IRA into the next companies 401k plan, so I can use the rule of 55. Otherwise, there would be a 10% penalty. So I did some checking. Internet says (who knows if this is true), that 70% of plans allow a reverse roll over. And there does not seem to be a way to KNOW, if the plan allows it, before you join the company.
This is a very wierd place to be. Where my salary is almost irrelevant, but the specific details of their retirement plan does.

I am trying to think of a way to get this checked out when given a job offer, without "tipping my hand" that I am probably going to leave at 55. Any thoughts?

 

[RetiredHappy]

As suggested above, "Have you considered a 72t/SEPP withdrawal plan to avoid the 10% penalty?".

 

[pacergal]

OP--
research employee benefits online as best you can, many companies will have info out to attract folks.

 

[momoney]

Thanks everyone for the advice and well wishing. The problem I am having is a strange one. So for me to retire early, I need reverse roll over my IRA into the next companies 401k plan, so I can use the rule of 55. Otherwise, there would be a 10% penalty. So I did some checking. Internet says (who knows if this is true), that 70% of plans allow a reverse roll over. And there does not seem to be a way to KNOW, if the plan allows it, before you join the company.
This is a very wierd place to be. Where my salary is almost irrelevant, but the specific details of their retirement plan does.

I am trying to think of a way to get this checked out when given a job offer, without "tipping my hand" that I am probably going to leave at 55. Any thoughts?

And from what I understand not all 401Ks support the rule of 55?

 

[Gallaher]

I was downsized at 57 in 2017. I made really lackluster efforts to find another job. At a point my wife said “if you want a job you need to look for one”. Pure brilliance, I retired then, about three months after layoff. Had 1.7 portfolio another .7 in real estate. It has been clear easy sailing. We have done nominal budgeting and plenty of travel.
The other point of brilliance she offered “ you earned it, we saved it let’s do what we want with it”. Prior to that I was concerned with kids legacy. Now I don’t sweat the kids. They did not inherit our frugality genes and I think they will have retirement challenges no matter what we leave them.
I think you’ll do fine.

 

[kirkhaven]

My situation is similar to the OP (although I was 55 when laid off for first time, just turned 56). My portfolio a little smaller (now at 1.6M) BUT wife is still working (54) and wants to keep working as she enjoys her job and just completed grad school to allow her to move to a higher pay and credentialed position. So I am lucky that I can use her insurance, when needed to bridge any gap.
I decided after half heartedly applying to other senior level roles, it is not what I wanted to do, was tired and burned out. I purposely decided to apply for "lesser qualified" positions.
Post layoff Job #1: I like cars (despite being frugal, we own Toyota and Subaru). So I got a job selling Audis and BMWs. It was actually pretty fun and the money was decent. But the hours were not. So...
Job #2: Doing WFH phone qualifications/interviews in the finance space. I am WAY overqualified, but, I work from home, super flexible hours, and make JUST enough money to minimize (or eliminate) any monthly withdrawal + I receive insurance and 6% match.

Moral of the story is: don't let your past prestige or pay define you, do what you want especially since you are in very good place financially.