BigMoneyJim
Thinks s/he gets paid by the post
Hi all. As many of you know, I'm not as close to retirement as the typical poster here. I hope you'll forgive this career/job topic.
My company (big Fortune 500 company) wants to downsize and I am currently eligible for a voluntary severance package. With my tenure I'd get a year's salary plus $10,000 (all as a lump sum in late November). The catch is I can never come back to work for this family of companies.
The main issue for me is the opportunity for the cash windfall versus my feeling of security with this company
The security part may sound funny since they're downsizing, and since I'm eligible I'm obviously not considered critical. But even if I were to get laid off I'd feel like at some point in the future I'd have a familiar company to come back to that knew I was valuable.
On the other hand, how often does a company offer you a year's salary simply to go away? It's like a moderate lottery win or a 10-bagger. Assumnig I attain employment right away it's one hell of a bonus.
I am currently paying down CC debt which would be paid off in May if I stayed. If I took the severance I would pay this off in November. The only other debt I have is a no-interest car loan with my grandad. I would probably go ahead and pay that off, too. After that and taxes I'd have somewhere between 3 and 6 months' living expenses depending on a few factors. I also have a modest nest egg in my 401(k) and an IRA, both heavily invested in stock funds, and a defined benefit pension plan I'm vested in. I currently plan that I would immediately sock the excess money in a MM fund as a cash cushion, although I'll probably break down and spend a couple of thousand on a new toy such as a used sailboat.
If any of you have thoughts about the apparent security of a familiar company versus a severance windfall I'd love to hear it.
Thanks!
My company (big Fortune 500 company) wants to downsize and I am currently eligible for a voluntary severance package. With my tenure I'd get a year's salary plus $10,000 (all as a lump sum in late November). The catch is I can never come back to work for this family of companies.
The main issue for me is the opportunity for the cash windfall versus my feeling of security with this company
The security part may sound funny since they're downsizing, and since I'm eligible I'm obviously not considered critical. But even if I were to get laid off I'd feel like at some point in the future I'd have a familiar company to come back to that knew I was valuable.
On the other hand, how often does a company offer you a year's salary simply to go away? It's like a moderate lottery win or a 10-bagger. Assumnig I attain employment right away it's one hell of a bonus.
I am currently paying down CC debt which would be paid off in May if I stayed. If I took the severance I would pay this off in November. The only other debt I have is a no-interest car loan with my grandad. I would probably go ahead and pay that off, too. After that and taxes I'd have somewhere between 3 and 6 months' living expenses depending on a few factors. I also have a modest nest egg in my 401(k) and an IRA, both heavily invested in stock funds, and a defined benefit pension plan I'm vested in. I currently plan that I would immediately sock the excess money in a MM fund as a cash cushion, although I'll probably break down and spend a couple of thousand on a new toy such as a used sailboat.
If any of you have thoughts about the apparent security of a familiar company versus a severance windfall I'd love to hear it.
Thanks!