OMY, Departure Timing and Learning not to be Greedy

[stepford]

Well, 2 years into my "OMY" sh*t has suddenly gotten real. I've negotiated a departure date later this year with my management, and the real countdown has begun. My management has been very accommodating in this process and gave me the choice of leaving before or after our paid company holiday shutdown. Where the complication comes in is that Megacorp is modifying/reducing retiree medical benefits for anyone who retires after 12/31/15.

So the choice is to be prudent, leave before the break and preserve my current (fairly generous) retiree medical benefit, or be greedy, collect the last 2-3 weeks of pay and risk the benefit reduction. I'm a pretty conservative guy financially (as evidenced by the last 2 years of OMY) and opted for the former. The only problem is psychological. I've become so obsessive about saving over the last 2-3 years that the thought of leaving that last 2-3 week paycheck "on the table" bugs me.

I know it shouldn't. It represents at most about 0.2% of my NW. Furthermore my company and my management in particular have been good to me and compensated me well these last few years. I shouldn't pay them back by being greedy. But the OMY compulsion to hoover up every last cent is strong nonetheless. What I'm realizing is that this is the first pangs of going from "savings mode" to "withdrawal mode" - something I know I'll need to adapt to soon, but still haven't come to grips with. Watching my NW steadily grow has been a source of comfort during the grind of the last few years. Now I have to learn to let that security blanket go.

 

[LoneAspen]

I'd have to think the value of 2-3 weeks of pay isn't as much as the potential reduction in future benefits, so on the surface I'd be inclined to leave before the break and secure a better benefits package.

Good luck in your decision!

 

[RunningBum]

I'm missing something. Is there a paid 2-3 week break for which you don't have to work, but if you leave before 12/31 you won't get? If that's what it is (and why is it 2-3, not 2, or 3? Shouldn't you know exactly by now?), it seems like just math to figure out if the extra 2-3 weeks pay is greater than what you'll pay in extra medical. If taking the penalty for reduced medical is greater, than just get over leaving that 2-3 weeks pay on the table since it'll put you behind. It's like someone telling you how to get a free $20 bill, but it'll cost you $25 in gas to get there. It's so obviously not worth it.

If you have to work those 2-3 weeks, than I don't even get the issue. You're no longer talking about OMY, it's down to OMW (week).

 

[RockyMtn]

Same as leaving with unvested stock options on the table. You just gotta grin and bear it. The benefits will be worth a lot more over the long run than a couple of weeks of pay...plus you still will get the time off, just not paid!


Congratulations on setting a date!

 

[MBAustin]

Same as leaving with unvested stock options on the table. You just gotta grin and bear it. The benefits will be worth a lot more over the long run than a couple of weeks of pay...plus you still will get the time off, just not paid!

+1. Get yourself out of there with the benefits.

 

[Lakewood90712]

It's time to go.

 

[greydog17]

Same circumstances here re megacorp retiree health plan in 2014. I compared ACA (silver) quote vs cost of retiree health plan for me and family (which actually is gold equiv) and compounded it thru age 65. A no brainer, took the retiree plan and FIREd. Yes, leaving is scary at first but you'll adjust quickly!

 

[Meadbh]

Let me tell you a story. I left a job (not my last) giving three months' notice, as my contract stipulated. I was asked to stay on for one more month. I thought the extra earnings were difficult to pass up. The unexpected result was that I got my house on the market one month later than I had planned. It was listed just as the competition arrived and I had to settle for a lower price than I could have achieved had I finished the job a month earlier. So I worked that month for nothing.

Just go.

 

[Lakewood90712]

Stepford, check your pm in box

 

[stepford]

Thanks for the encouragement everyone. I am indeed going to "just go". I just wanted to relate my example of the dysfunctional mindset that goes along with OMY syndrome - and how I'm convincing myself to finally let go.

Two years ago I was offered a chance to leave Megacorp with a retirement package. I hadn't yet met my savings targets, declined the offer and doubled down on work - focusing on saving every cent. While I sometimes regret the extra two years of the grind as a result of the combination of that aggressive saving and a favorable investment climate my NW is now 25% higher, my pension 50% greater and my mortgage is paid off. I'd be a fool to push it at this point just to get a few extra $K and Mama didn't raise no fool.

 

[Music Lover]

You will quickly forget about the 2 or 3 weeks of "lost" pay once you settle into retirement, but if your medical benefits are reduced, you could end up worrying about that every single day for the rest of your life.

 

[Meadbh]

You will quickly forget about the 2 or 3 weeks of "lost" pay once you settle into retirement, but if your medical benefits are reduced, you could end up worrying about that every single day for the rest of your life.

+1000!

 

[FreeBear]

Hi Stepford,

Congratulations for getting so close to retirement! Actually I'm very envious of you and others who have meaningful health benefits. We jumped with NO medical and now bleed $ 10K/year for ACA high deductible Bronze. It's a long way to medicare. Yuck!

You'll need to shift from saving to spending at some point, seems this is a good time & reason. Take/protect the medical benefits, then runnnnnn...

FB