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retiredat48
Participant ○○○

Re: Fired

 

Chang,,,two things:

1.  With your Engineering degree, math expertise and forum reader/avid poster for a decade, surely you do not need any financial management/assistance.

2.  Hey, you're a Navy Nuc...they never overspend.  The blue-suiters worked at the IBM's of the world; not so, Navy Nuclear folks.  A five million dollar portfolio has the Admiral rolling over in his grave! :-)

I like to use what I call "The Oprah Test" with my wife, whenever she doubts our asset size.  That is, Oprah W. makes about $80 million a year; but she surely can't spend $80 million annually.  So I ask my wife:  Here you are sitting at a beautiful winter weekday in Florida, at Polo, having lunch with an assortment of friends (a few very wealthy/most highly educated), watching top notch polo, followed by dinner in Palm Beach.  Is Oprah doing anything different except perhaps working.  There's only so much Oprah can eat in a day!!

Same applies to retirees.

R48

 

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chang
Contributor ○○○

Re: Fired


@Avvocato wrote:

chang -

Look seriously at rolling over company pension or 401k to traditional rollover IRA's. Trustee to trustee transfers only. Easily done.


While I am leaning toward taking the pension in a lump sum and rolling it into a T-IRA, I was planning to leave the 401k alone for a while. I assume that, unlike a pension, the 401k is 100% safe, being that it is my money. Nothing could possibly impair it, except maybe a direct meteor strike. Right?

The 401k has some nice funds which I could not purchase in a Fido or VG IRA, so I don't see any advantage in rolling it into an IRA.

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yogibearbull
Valued Contributor

Re: Fired


@chang wrote:

@Avvocato wrote:

chang -

Look seriously at rolling over company pension or 401k to traditional rollover IRA's. Trustee to trustee transfers only. Easily done.


While I am leaning toward taking the pension in a lump sum and rolling it into a T-IRA, I was planning to leave the 401k alone for a while. I assume that, unlike a pension, the 401k is 100% safe, being that it is my money. Nothing could possibly impair it, except maybe a direct meteor strike. Right?

The 401k has some nice funds which I could not purchase in a Fido or VG IRA, so I don't see any advantage in rolling it into an IRA.


That is correct. 401k are kept separately from company funds. They have more protections than T-IRA, but there is more paperwork required to withdraw money from 401k - understand that as part of better protection. 

If you also have 457, that is different. Private 457 have risks - if the company goes under, private 457 holders become creditors and stand in line with other creditors. These cannot be rolled over into T-IRA. [Public 457 are more like 401k]

YBB
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Gary1952
Contributor ○○

Re: Fired

It's all your money as long as you are 100% vested into the matching. Took me 3 weeks to apply online and receive a check into my Schwab account. Longer in the past when it was paperwork. I would suggest turning the 401k into cash or stable value ahead of any transfer to make sure you don't take a sudden hit

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twinlabs
Explorer ○

Re: Fired

Another good reason to have 401k's instead of TIRAs is if you want to do a backdoor Roth at some point. You don't get penalized in the amount that you can transfer to a Roth from a non-deductible TIRA if you have only 401ks.

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BearMkt
Explorer ○

Re: Pension options


@chang wrote:

@Dawgie wrote:

Sorry to hear about your involuntary retirement, Chang, but it could very well turn out to be a blessing in disguise. I got laid off once in my career, and it turned out much better for me in the long run. You are young and skilled enough to continue working if you desire, but it sounds like you also have enough assets to retire early.

Good luck!


To be perfectly honest, I really do not know whether I have enough. What complicates my situation is:

  • We live abroad at the moment, and are not sure where we will go next. Maybe stay in Thailand for a while, maybe settle in Spain where my stepson lives, maybe Switzerland, or maybe back to the US... Really do not know.
  • We are renting a house now. I own a small condo here in Bangkok (the worst investment I ever made) but I do not own my "retirement home", and I have no idea how much to budget for it.
  • If we live abroad, I won't be able to access Medicaid, and I really do not know yet how we will handle health care insurance going forward.
  • Our spending rate has been what you would probably consider "high" during my working career. We have not denied ourselves what we wanted. But going forward, we probably need to think a bit more frugally. However, I could not possibly say with any accuracy exactly what our expected annual spending would be.

My assets are spread around at the moment in 4 taxable accounts, 2 IRAs (a T and a Roth), a 401k, and company pension plan (see related thread on this forum), plus a few bits and pieces like the condo I mentioned. For the sake of argument, let's say the whole kit-and-kaboodle amounts to $5m. Do you think I'm home free? Honestly, I don't know.


I just stumbled across this thread and was surprised to see this.  It sounds like you have options. The thing I like most about having money is the freedom it provides. At 61 years old I've learned to value freedom and the peace of mind it gives me. You'll have more time to work out and get those great Thai Massages. I'm very curious to hear about where you end up. Best wishes to you.  

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AluminumMan
Explorer ○

Re: Fired

Chang,

My bosses decided I was not enough of a "yes" man 15 years ago and paid me well to retire.  They didn't know it but I was going to quit a few months later and forego a pension because my job had gotten so bad.  

My forced retirement gave me the chance to be a better dad (our son was 4) and husband.  The combo of their non-compete package, pension and our investments allowed me to retire at 47.  In 2011 I decided to start a new career in a totally different field...and enjoy it a lot.

My point is that with $5M and valuable/portable skills, like me, you have the freedom to decide what you want to do.  

Best of luck to you and your family,

John

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chang
Contributor ○○○

Re: Pension options


@BearMkt wrote:

I just stumbled across this thread and was surprised to see this.  It sounds like you have options. The thing I like most about having money is the freedom it provides. At 61 years old I've learned to value freedom and the peace of mind it gives me. You'll have more time to work out and get those great Thai Massages. I'm very curious to hear about where you end up. Best wishes to you.  


Thanks Bear. I am looking forward to more freedom and choices. And yes I do like my Thai massage. Most people don't understand what Thai massage actually is. It is deep tissue massage, to loosen up knots and scar tissue in the muscles, very important if you do weight training to create muscular hypertrophy. So many tourists here just get one hour massage, which is almost useless. The absolute minimum required to properly treat your body is 2 hours, and you can go up to 4-5 hours. I usually do 2-3 hours, twice a week.

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Highlighted
chang
Contributor ○○○

Re: Fired


@AluminumMan wrote:

Chang,

My bosses decided I was not enough of a "yes" man 15 years ago and paid me well to retire.  They didn't know it but I was going to quit a few months later and forego a pension because my job had gotten so bad.  


My situation exactly, John. I wouldn't have lasted out the year, things had already become so intolerable. The company has let hundreds of people go in the last couple of years, and I've been wondering what I've been doing wrong that's caused them to keep me on. "Hallelujah" barely scratches the surface of my emotions when I got the news. Now I'll get a severance package, all my vested LTIP and an early lump-sum pension to invest. Had I resigned, I would have lost all that.

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AluminumMan
Explorer ○

Re: Fired

Chang,

Yikes!  Your situation was very similar to mine.  During my final performance review, my boss told me I'd done a poor job despite lots of significant annual pay raises etc.  He presented me with two offers: a transfer or a very generous retirement package that include a very long non-compete.  He wanted me gone but not with a competitor.  Within 10 minutes of our conversation and prior to me making a decision he announced my replacement to my former team.  He also had the head of Security take me to my office that night to gather my things.  FWIW, I'm a financial advisor now and the former head of security and his wife are clients of mine.  Although it wasn't necessary, my client apologized to me when we first started working together.  

I never gave my boss the pleasure of knowing how happy I was to receive the retirement package.  He was later fired for being a poor manager.  

One benefit of leaving was that all my stress related problems disappeared.  My healther improved almost overnite.

So, I wish you the best and hope your new life is at least as good as mine.

John

 

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NuEnglander
Follower ○○

Re: Fired

Hi.

All this happened to me 28 years ago. I was 54 then and therefore had no ERISA etc. protection etc. Started a business in the trade I worked at that put me through school, (took a while), Kept it small, no employees and worked when I wanted to. So here we are today. However, back then 401K plans were loaded with fees, and I could get a better return on my own in a SEP IRA. Can't speak for today, but I would look to see what the fees amount to in what ever it is. Some of them can be pretty "sneaky". Good luck and enjoy the ride.

 

 

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retiredat48
Participant ○○○

Re: Fired


@AluminumMan wrote:

Chang,

Yikes!  Your situation was very similar to mine.  During my final performance review, my boss told me I'd done a poor job despite lots of significant annual pay raises etc.  He presented me with two offers: a transfer or a very generous retirement package that include a very long non-compete.  He wanted me gone but not with a competitor.  Within 10 minutes of our conversation and prior to me making a decision he announced my replacement to my former team.  He also had the head of Security take me to my office that night to gather my things.  FWIW, I'm a financial advisor now and the former head of security and his wife are clients of mine.  Although it wasn't necessary, my client apologized to me when we first started working together.  

I never gave my boss the pleasure of knowing how happy I was to receive the retirement package.  He was later fired for being a poor manager.  

One benefit of leaving was that all my stress related problems disappeared.  My healther improved almost overnite.

So, I wish you the best and hope your new life is at least as good as mine.

John

 


While I simply "retired" at age 48, I experienced the same improvements in health numbers...like cholesterol going from 225-230 range, to 190-200 ever since.  

My doctor called me his "grand experiment" as he didn't recall a patient retiring that early.  It influenced his decision to retire earlier than planned, albeit he stated his first malpractice lawsuit, whereby he was included in a case where all he did was refer the patient to a specialist, contributed to him leaving medical practice.

R48

 

ElLobo
Participant ○○

Re: Fired


@AluminumMan wrote:

Chang,

Yikes!  Your situation was very similar to mine.  During my final performance review, my boss told me I'd done a poor job despite lots of significant annual pay raises etc.  He presented me with two offers: a transfer or a very generous retirement package that include a very long non-compete.  He wanted me gone but not with a competitor.  Within 10 minutes of our conversation and prior to me making a decision he announced my replacement to my former team.  He also had the head of Security take me to my office that night to gather my things.  FWIW, I'm a financial advisor now and the former head of security and his wife are clients of mine.  Although it wasn't necessary, my client apologized to me when we first started working together.  

I never gave my boss the pleasure of knowing how happy I was to receive the retirement package.  He was later fired for being a poor manager.  

One benefit of leaving was that all my stress related problems disappeared.  My healther improved almost overnite.

So, I wish you the best and hope your new life is at least as good as mine.

John

 


Sounds like the traditional 5x10x15 Golden Parachute.  Five days severance pay, a 10 speed bike, and 15 minutes to turn in your badge and get your sorry ass off of company property! 8-))

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