Author Topic: Should I stay or should I go?  (Read 7340 times)

Kansas Beachbum

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Should I stay or should I go?
« on: November 05, 2014, 01:14:53 PM »
So...Beneficent Mega Corporation, in an effort to "further align our cost structure" has offered up a Voluntary Separation Package as part of the current downsizing iteration.  The Mrs. KBB and I both work here, have both been here a sufficient number of years that we'd both get the max 52 weeks of full pay and benefits.  We are early 50's, very financially secure, stache of $1.2M, kids college funds intact, etc.  We are both planning to take the package...she's 100% all in, but I'm still maybe only 95%.  Little voice in my head says you're a dumbass to walk away from a 6 figure job.  Other little voice in my head (there are several voices in my head) says yeah, but you're done, and you'll find something else and be able to double dip salaries for a while, further enhancing the stache. 

So fellow mustachians...What I really want to know, dah dah dah dah dah dah dah, should I stay or should I go?

MrBuckBeard

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Re: Should I stay or should I go?
« Reply #1 on: November 05, 2014, 01:19:40 PM »
I used to live in Kansas myself.  If you take the package and walk away, will you look for another job?  Or does the 1.2M stache have you set?  Because if you need to/want to find another job, I imagine the well-paying Kansas jobs are harder to come by in a smaller market (even in JoCo or KC Mo).

UnleashHell

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Re: Should I stay or should I go?
« Reply #2 on: November 05, 2014, 01:22:28 PM »
1.2m?
add what 100K for the payout net.

1.3m
4% = 52k pa and never work again.


i'd do it - depends on your budget and liabilities as well....

(or the payout covers 2 years of living while your current fund grows...)

Bobberth

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Re: Should I stay or should I go?
« Reply #3 on: November 05, 2014, 02:18:24 PM »
If you go there will be trouble.
If you stay if will be double.

AccidentalMiser

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Re: Should I stay or should I go?
« Reply #4 on: November 05, 2014, 02:23:41 PM »
If I was in your shoes, I'd have retired yesterday.

Why on earth would you want to "find something else"?  It's time to be FREE!!

DeepEllumStache

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Re: Should I stay or should I go?
« Reply #5 on: November 05, 2014, 02:34:34 PM »
What are your current FI plans?  Do the financials line up?  Are you happy in your job?  Would you need another full-time job at six figures to meet your FI plans?  Do you and Mrs. KBB have plans together for FI?

It sounds like a lovely parting gift, but it depends on where you stand.


Kansas Beachbum

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Re: Should I stay or should I go?
« Reply #6 on: November 05, 2014, 03:36:52 PM »
What are your current FI plans?  Do the financials line up?  Are you happy in your job?  Would you need another full-time job at six figures to meet your FI plans?  Do you and Mrs. KBB have plans together for FI?

It sounds like a lovely parting gift, but it depends on where you stand.

Not happy in job, bored to tears.  Yes we have definite FI plans, but waiting until our youngest graduates from high school to head out...another 1.5 - 2 years, so basically just treading water here until that happens...continuing to add to the stache, with double incomes if we take the buyout and find other interim jobs.  That's the cool thing I guess, and maybe this should be on the FU Money thread, the fact that we don't really need these jobs and feel comfortable walking away.  Just a tougher decision than I thought it would be.

deborah

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Re: Should I stay or should I go?
« Reply #7 on: November 05, 2014, 04:03:47 PM »
I'd take it and use the 1.5 - 2 years to get ready to go!

NoraLenderbee

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Re: Should I stay or should I go?
« Reply #8 on: November 05, 2014, 05:39:49 PM »
They will pay a year's salary to leave? TAKE IT. The packages will only shrink when more layoffs come along.

To look at it another way--If a new employer offered you a year's salary as a signing bonus, would you take it? That's what you've got here (assuming that the local job market is healthy).  You just get the bonus first and then find the job.

Daisy

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Re: Should I stay or should I go?
« Reply #9 on: November 05, 2014, 08:09:05 PM »
Seriously?!?!?! This is my dream - to be offered a voluntary severance package. Those are usually twice the amount of involuntary severance packages at my company.

We had one offered a year ago, but I didn't qualify for it due to the job grade I was in. But if it was ever offered to me, I'd be doing back flips on my way out the door!

You said you were going to wait 1.5-2 years to FIRE. But you are being given a whole year's worth of pay, both you and your wife! Considering you probably live on a fraction of your pay, you can probably make that package last about 2 years, which was your original FIRE date. Although during that time you wouldn't be adding to the stash, but still!!!

From what I've seen, companies rarely offer these buyouts. So if you don't take it now, you run the risk of staying for another year, getting laid off then with a less desirable package, while having had to work that year. They don't offer these lucrative packages often.

Do it!!!

mozar

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Re: Should I stay or should I go?
« Reply #10 on: November 05, 2014, 09:04:27 PM »
I don't understand why you want to wait until your child graduates. But you were going to FIRE in 1.5 years anyway. This package gets you one more year. What does 6 months matter?

dividendman

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Re: Should I stay or should I go?
« Reply #11 on: November 05, 2014, 09:52:26 PM »
If you go there will be trouble.
If you stay it will be double.

I think Bobberth quoting the song you started is hilarious and accurate. If you go it'll be a challenge to that nagging 5% of your mind... but if you stay it'll be worse! Take it!

Kansas Beachbum

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Re: Should I stay or should I go?
« Reply #12 on: November 06, 2014, 10:43:39 AM »
If you go there will be trouble.
If you stay if will be double.

Bobberth must be old like me, LOL.  Wondered if / who would get the song reference.  You all have reinforced every thought I already had.  Done deal, paperwork submitted.  Proceed with happy dance!

DeepEllumStache

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Re: Should I stay or should I go?
« Reply #13 on: November 06, 2014, 10:46:04 AM »
If you go there will be trouble.
If you stay if will be double.

Bobberth must be old like me, LOL.  Wondered if / who would get the song reference.  You all have reinforced every thought I already had.  Done deal, paperwork submitted.  Proceed with happy dance!

Congratulations!

SunshineGirl

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Re: Should I stay or should I go?
« Reply #14 on: November 06, 2014, 01:41:35 PM »
I got the song reference, too!

One thought: Could taking the severance now perhaps even enable your kids to get financial aid/grants for college? 

Daisy

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Re: Should I stay or should I go?
« Reply #15 on: November 06, 2014, 01:48:49 PM »
Maybe I am old enough as well...because I just assumed everyone knew you were referring to The Clash song.

Someone at work asked for a phone number the other day during a meeting. I joked and said 867-5309, but no one laughed. They are all pretty young in their 20s. So I said "does anyone know what I am talking about?". Only one girl then said she's heard the song from her parents.

I don't even feel old being in my mid-40s, but I guess I am getting there...

Pylortes

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Re: Should I stay or should I go?
« Reply #16 on: November 06, 2014, 01:51:32 PM »
Congratulations KansasBeachBum!  I agree with the decision as well, especially if you were bored at work anyway.

Question to the group- I've never been laid off (or offered voluntary severence!)  Some of you thought 52 weeks was quite generous- what is the typical corporate severance package for being laid off?  I've heard somewhere that maybe 2 weeks (1 paycheck) for every year of service- is this accurate?  Anyone with experience please chime in, thanks!

Daisy

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Re: Should I stay or should I go?
« Reply #17 on: November 06, 2014, 02:01:46 PM »
Congratulations KansasBeachBum!  I agree with the decision as well, especially if you were bored at work anyway.

Question to the group- I've never been laid off (or offered voluntary severence!)  Some of you thought 52 weeks was quite generous- what is the typical corporate severance package for being laid off?  I've heard somewhere that maybe 2 weeks (1 paycheck) for every year of service- is this accurate?  Anyone with experience please chime in, thanks!

Voluntary - 2 weeks per year of service
Involuntary - 1 week per year of service

About 15 years ago my company had a voluntary package that gave you 3 weeks per service. The packages just get smaller as time goes on, even if they are available. I've only seen them offered twice in my 20 year career at a big corporation. The OP should definitely seize the day and thank his lucky stars that the voluntary package was offered just in time to align with his FIRE plans.

Spudd

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Re: Should I stay or should I go?
« Reply #18 on: November 06, 2014, 02:23:26 PM »
I just applied for a voluntary package that's 1 month per year of service. So I guess it varies by megacorp. I know my friend's company maxes out at 6 weeks.

Kansas Beachbum

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Re: Should I stay or should I go?
« Reply #19 on: November 06, 2014, 02:30:53 PM »
Where we work it has always been 8 weeks plus 2 weeks per year of service, capped at 52 weeks.  The rumor is though, that the package here is going to be severely reduced mid-2015.  It is just rumor at this point, but based on what I know/observe, I would be surprised if it is not true.

AccidentalMiser

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Re: Should I stay or should I go?
« Reply #20 on: November 06, 2014, 02:48:17 PM »
If you go there will be trouble.
If you stay if will be double.

Bobberth must be old like me, LOL.  Wondered if / who would get the song reference.  You all have reinforced every thought I already had.  Done deal, paperwork submitted.  Proceed with happy dance!

+2!!
Congratulations!

auntie_betty

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Re: Should I stay or should I go?
« Reply #21 on: November 06, 2014, 03:20:59 PM »
Where we work it has always been 8 weeks plus 2 weeks per year of service, capped at 52 weeks.  The rumor is though, that the package here is going to be severely reduced mid-2015.  It is just rumor at this point, but based on what I know/observe, I would be surprised if it is not true.

Delighted you've gone ahead. Because
If you go there will be trouble
If you stay there will be half

just doesn't scan as well.

Josiecat

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Re: Should I stay or should I go?
« Reply #22 on: November 06, 2014, 04:52:28 PM »
I think I would take the packages and then come back through a consulting firm until you're ready to full on retire.

SunshineGirl

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Re: Should I stay or should I go?
« Reply #23 on: November 07, 2014, 10:08:44 AM »
Maybe I am old enough as well...because I just assumed everyone knew you were referring to The Clash song.

Someone at work asked for a phone number the other day during a meeting. I joked and said 867-5309, but no one laughed. They are all pretty young in their 20s. So I said "does anyone know what I am talking about?". Only one girl then said she's heard the song from her parents.

I don't even feel old being in my mid-40s, but I guess I am getting there...

LOL.

rmendpara

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Re: Should I stay or should I go?
« Reply #24 on: November 07, 2014, 11:00:48 AM »
Are you just afraid to finally pull the plug?

Assuming you've hit the "number" you need to retire, then what are you waiting for? It's hard to give up a paycheck, but what if you really don't need it?

Biggest question is whether you think you could find some work to cover half or more of your basic living expenses if you needed to do so? If you are skilled and employable, then might as well take the plunge, right?

It may be a good way to test retirement if you can go to part-time in some type of work just to ease off the full time schedule. No need to go cold turkey and just stop working if that makes you anxious.