Sarah in SC
Moderator Emeritus
You should not think twice about taking this deal. I would KILL for such an offer.
+1. Take it!
You should not think twice about taking this deal. I would KILL for such an offer.
Compelling reasons for leaving, FWIW, DW agrees with you.
Best I could find online for unemployment "Unemployment Insurance (UI) is a temporary income protection program for workers who have lost their jobs through no fault of their own." I'll give them a call tomorrow, I've got till the middle of the month to decide.
One years severance ($100k), and $5K for retraining which I'd probably use for fly-fishing or golf school.
I believe it's all at once and the figure is before taxes, but it's another thing to check on. The effect of taxes when combined with this years earnings to date is something I hadn't thought of.I'd first figure out what that severance ad training is after taxes, and if the resulting impact will not be an issue.
Do you have the ability to spread it out, or must you all take it at once?
I You appear to be a person who has a financial
plan and lifestyle desired in retirement. If you take the buyout and adjust your spending rate to compensate, while you be happy with this lifestyle?
I'm beginning to waiver. I think Clifp might be right. Maybe you should keep working and 'take one for the team' - we'll really appreciate your hard work and sacrifice.DW is fine with it, don't know as yet if I would be.
I would be inclined to take it. If you don't take it, you may be in the next round of layoffs and may not get anything.
With that in mind...if you took the offer...would you go near the beginning of 2014, or would it be this year? Tax wise...that is important to know when getting severance. The beginning of 2014 would be better since you would not have made that much earned income for taxes...which could affect the tax rate of your severance.
You should not think twice about taking this deal. I would KILL for such an offer.
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I'm 56 employed at the same place for 35 years, wife is 57 and self employed, she has cut back her hours to spend time with the grand kids. Job prospects for me would not be good as aside from the age thing, while I'm in computers few of the skills I have are transferable to local businesses. I'm in manufacturing and honestly wouldn't want to do this anymore even is there were other opportunities.
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All the calculators say we can do 70k - 75k for 40 years. We need about 50k (figures are after taxes) for the basics and could cut to about 40k if we had to, but have been closer to 70k lately with some long delayed home remodeling after 32 years. We've been tracking spending with Quicken for the last 18 months.
... With the layoffs, forced on many, our work load will be getting even worse then it already is, which is not something I look forward to.
Cross over children. All are welcome. All welcome. Go into the Light. There is peace and serenity in the Light.
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Realistically, you can't plan on getting $65k of real income from a $950k portfolio. So you have to be prepared to see your portfolio drop (at least in real terms) between now and the time SS starts. You or your wife may find that psychologically unsettling, even if the numbers say it's okay. ..
I'd also mention that in the first round of layoffs at my workplace, the offer was pretty generous (when I left). The second round wasn't pretty as there was a change in upper management with a different "outlook" on what was owed to excess employees. That combined with a death of a good friend who was working "one more year" and never got to spend a day in retirement, gives me my current perspective.
Yes, I just took his 'All the calculators say we can get $70K' at face value. But where is it coming from? If it is the only source while waiting for 70 for SS, that could deplete that portfolio to a pretty low level - would SS still get you in to the $70's (in today's dollars) if the portfolio took a hit?
Is there a pension in there somewhere?
-ERD50
What does FIRECalc say if you plug in taking SS at 66 instead of 70? (I'm not trying to start a debate on when to take SS, just asking if the numbers might work better for you if you didn't burn down your savings too far before taking SS.)Savings is all we have, SS for wife at 66 would be 15k, myself at 70 is 39k. And yes, it does drop a lot waiting to take SS at 70. The only way I know around it is to spend less.
Short of passing up $100,000 and working full time for another 3.5 years under what you believe will be unpleasant circumstances, there is another solution: a part-time job. This has been suggested a number of times but I sense you don't think this is a viable option.The only way I know around it is to spend less.