keep job or cash out? when do you know if it is worth it?

[hegemony]

one of my colleagues took a cash out option (one time payment of 100% annual base).

 

this meant he retire/quit. he has since moved to a new job.

 

any idea how to determine if a pay out is worth giving up a job?

 

 

1 times annual salary payout > keeping job?

 

3 times annual salary payout > keeping job?

 

5 times annual salary payout > keeping job?

[Kevin20]

one of my colleagues took a cash out option (one time payment of 100% annual base).

 

this meant he retire/quit. he has since moved to a new job.

 

any idea how to determine if a pay out is worth giving up a job?

 

 

1 times annual salary payout > keeping job?

 

3 times annual salary payout > keeping job?

 

5 times annual salary payout > keeping job?

 

I'd think there are too many variables for there to be a good standardized way to analyze this. E.g, age and how many years til retirement? can a person expect to find another job paying as well in a reasonable amount of time? Can one expect to find ANY job at all?

 

How about 10 X annual salary ... that way you MIGHT be able to have interest and gradually depleting capital replace your income for long enough (unless of course it doesn't...).

 

Tricky though because it's not just a case of replacing current income. You also lose the ability to invest in a 401k type plan and to continue to pay social security taxes (assuming you don't get another job or settle for a much lesser job)

 

That said, if I still had access to the planning software I used to use in my advisor days I could do a credible job of analyzing a person's variables, piece of cake.

[radi8]

I'd think there are too many variables for there to be a good standardized way to analyze this.

 

One consideration might be job stability. If I worked for GM, I'd be taking the buyout.

[hegemony]

I'd think there are too many variables for there to be a good standardized way to analyze this.

 

One consideration might be job stability. If I worked for GM, I'd be taking the buyout.

good point.

 

IMHO 100% of annual base that my friend took would not have been worth it. 3 times? maybe since I could probably get a new job quickly.

[LBCS]

I'd think there are too many variables for there to be a good standardized way to analyze this.

 

One consideration might be job stability. If I worked for GM, I'd be taking the buyout.

good point.

 

IMHO 100% of annual base that my friend took would not have been worth it. 3 times? maybe since I could probably get a new job quickly.

 

3 times would be the absolute min for most people.

 

As usual there are caveats to everything. A few years back a large Healthcare company here in So Cal was bought up by a larger giant. They offered buyouts (12 months minimum severance, more depending on the tenure). Very few people took them. 8 months later a bunch of people were let go forcefully but this time with just 6 months severance. While no one can be Nostradamus, one should evaluate the role and position during situations like this very carefully. Takeovers can lead to unpredictable results. My friend refused the buyout (He was eligible for 19 months) and then was laid off just when the recession kicked in. Obviously in his case the initial severance would have been the right thing to do, especially considering that he was in IT - tech middle management is usually the first thing to be cut during a takeover.

[CreditMcNugget]

I personally would leave my job for 1x my annual salary...then again, I'm not too happy with them right now...

[TroyP]

My Dad would probably take a buyout if they offered 3x his salary. He's been there long enough where he would receive a not inconsequential pension, combined with 3x his salary, he could work an easy, low stress job, have most of his mortgage paid off, and way better cash flow than he does now.

 

A buddy was offered 1 year plus 18 months health care to leave a company he only worked at for 2 years... that was a pretty sweet deal.

[Sniper762]

When companies start offering packages you want to be in the first wave if at all possible. They pretty much never get better and these nice gestures go away quickly. In my line of work the general rule of thumb is 1 month for every year worked.

[BBQ123]

Think about the potential for finding a new job of comparable salary. Could you find that job within a year? If so, the buyout is probably worth it.

[HenryS]

There is a question that gets you thinking - I would go for two or three times annual salary...I'd have to my health insurance also for about 6 months. I'd work on my small business while taking the next year to try and find a new job - probably would take about that long I suppose.

 

Henry

[VibrantEcho]

What are the tax implications of that kind of a deal? You're certainly not going to be pocketing the entire amount.

 

I don't think 1X would be worth it for me - we are pinching pennies as it is and I would love to have the $$$ security to relocate. 3X would probably do it.

[StockTrader6080]

I didn't take any bailout. Instead I just quit so I could spend all of my time focusing on the stock market and "really - really" understanding it.

What I have discovered is not pretty. But worse than "not pretty" is the fact that I invested in mutual funds for years and put up with those poulty returns for so long.

Now I see that the stock market is EXTREMELY easy and predictable. If you turn the wrong way on a one-way street, you know immediately.

The stock market is just as easy. If most of the stocks are going down (even when the Dow is up), do not buy, and if ALL STOCKS ARE GOING DOWN (like last year) GET THE HECK OUT; Which is something the mutual funds did not do last year while all stocks were going down and it cost people 1/2 of their account sizes. What an insult!!

 

Now I use cooltrade robotic stock traders. Requires no programming, and I can manage my own money and not have to count on some fund manager.

If you go to the cooltrade website, and click on the "strategies" you can see how the free strategies of actual users and see the "real" performance.

 

Keith

[MarvBear]

how much this gonna cost me buddy?

[pryan67]

I didn't take any bailout. Instead I just quit so I could spend all of my time focusing on the stock market and "really - really" understanding it.

What I have discovered is not pretty. But worse than "not pretty" is the fact that I invested in mutual funds for years and put up with those poulty returns for so long.

Now I see that the stock market is EXTREMELY easy and predictable. If you turn the wrong way on a one-way street, you know immediately.

The stock market is just as easy. If most of the stocks are going down (even when the Dow is up), do not buy, and if ALL STOCKS ARE GOING DOWN (like last year) GET THE HECK OUT; Which is something the mutual funds did not do last year while all stocks were going down and it cost people 1/2 of their account sizes. What an insult!!

 

Now I use cooltrade robotic stock traders. Requires no programming, and I can manage my own money and not have to count on some fund manager.

If you go to the cooltrade website, and click on the "strategies" you can see how the free strategies of actual users and see the "real" performance.

 

Keith

 

 

 

If you're a professional trader, what trading frontend do you use? What's your connection to the exchange? What gateway do you use?

 

 

 

or...do you use the internet for trading?