I was laid off from my job recently. Overall, I was unhappy with the role, and had already begun some light networking and job searching, so in a way, it’s a good thing, especially since the severance is so large (all told, the total severance is worth a little more than a year’s worth of salary)
Technically I’m stilled employed with the company until early Jan 2025, and will receive full pay/benefits until then. After that, I will officially be terminated. I have no job duties from now to Jan, so I’m treating this time as basically a paid job hunt.
I can continue on their awesome health plan via COBRA until 10/31/25, with only paying my side of the premium (they’ll continue to pay their premium share and the COBRA admin fee). And if I wanted, I could tack on additional 9 months of COBRA, which extends health benefits until 7/31/26, but would be responsible for the full premium and COBRA admin fee.
My wife has a steady, high income in a medical profession and is unlikely to lose her job soon (though stranger things have happened). She’s also seen an increase compensation in the last quarter, and it’s expected to continue, which will only help our financial situation. We could also hop onto her benefits plan if needed, although it isn’t quite as generous as my (soon to be former) employer. Her compensation could probably carry us indefinitely if needed.
We live and own a home in MCOL city, and don’t have kids. We are doing IVF, which is about half covered through my current employer, which is one reason we would stay on their plan. We have several embryos in cold storage, and hopefully the next transplant takes, which would challenge our finances. Thus, as much as I want to be a stay at home golfer, I’ll have to re-enter the workforce in 2025.
We only have 3 months expenses saved up, as we have been pouring excess cash into student loans and making a few home improvements. The severance lump sum paid in early 2025 will “help” that, but it’s false savings in my mind until new employment is found.
My plan for the next few months is to really spin up the job search/networking. I’ll also take some time to relax, and do a bit of travel, to refocus and renergize while the job hunt plays out. The job I was let go from was remote and in a new industry from my prior experiences, so I will likely go back to my old industry, especially since the city we live in is known for being the “capital” of this industry, and I have maintained a great reputation within the industry and our current city.
Financially, I’ll probably put the severance in a CD ladder, and “draw” a salary from the CDs each month. If I find new employment prior to depleting the full amount, then I’ll throw the “double dipped” amount at the remaining of our student loans.
So for the Bogleheads, does this sound like a sound financial strategy? Any other things I should consider (financially, personally, or professionally)?
Happy to provide more details, but hopefully what I provided is enough to provide meaningful advice.
Technically I’m stilled employed with the company until early Jan 2025, and will receive full pay/benefits until then. After that, I will officially be terminated. I have no job duties from now to Jan, so I’m treating this time as basically a paid job hunt.
I can continue on their awesome health plan via COBRA until 10/31/25, with only paying my side of the premium (they’ll continue to pay their premium share and the COBRA admin fee). And if I wanted, I could tack on additional 9 months of COBRA, which extends health benefits until 7/31/26, but would be responsible for the full premium and COBRA admin fee.
My wife has a steady, high income in a medical profession and is unlikely to lose her job soon (though stranger things have happened). She’s also seen an increase compensation in the last quarter, and it’s expected to continue, which will only help our financial situation. We could also hop onto her benefits plan if needed, although it isn’t quite as generous as my (soon to be former) employer. Her compensation could probably carry us indefinitely if needed.
We live and own a home in MCOL city, and don’t have kids. We are doing IVF, which is about half covered through my current employer, which is one reason we would stay on their plan. We have several embryos in cold storage, and hopefully the next transplant takes, which would challenge our finances. Thus, as much as I want to be a stay at home golfer, I’ll have to re-enter the workforce in 2025.
We only have 3 months expenses saved up, as we have been pouring excess cash into student loans and making a few home improvements. The severance lump sum paid in early 2025 will “help” that, but it’s false savings in my mind until new employment is found.
My plan for the next few months is to really spin up the job search/networking. I’ll also take some time to relax, and do a bit of travel, to refocus and renergize while the job hunt plays out. The job I was let go from was remote and in a new industry from my prior experiences, so I will likely go back to my old industry, especially since the city we live in is known for being the “capital” of this industry, and I have maintained a great reputation within the industry and our current city.
Financially, I’ll probably put the severance in a CD ladder, and “draw” a salary from the CDs each month. If I find new employment prior to depleting the full amount, then I’ll throw the “double dipped” amount at the remaining of our student loans.
So for the Bogleheads, does this sound like a sound financial strategy? Any other things I should consider (financially, personally, or professionally)?
Happy to provide more details, but hopefully what I provided is enough to provide meaningful advice.
Statistics: Posted by erebusxc47 — Tue Nov 12, 2024 12:50 am — Replies 6 — Views 500