"Currently, while they are still employed, they earn around $300,000 annually between their salary and bonus. They also have around $1.3 million in a 401(k) as well as another $418,000 in an E-Trade account. They would receive a pension from their job, assuming the layoff does happen, of either $8,000 a month or a $1.4 million lump sum."
"On the plus side, they have a mortgage rate of only 2.25%, which is incredibly low, and it will be paid off in 5 years. On top of this, they have a paid off SUV, all while considering themselves pretty frugal with no credit card debt, and their only real splurge is a few modest vacations each year. All of this leads directly to the question of whether they should be concerned, considering they will receive a one-year severance, file for unemployment, and have plenty of money in the bank."
A 54-year-old employee anticipates a layoff and worries about financial consequences. Current annual compensation is about $300,000 including salary and bonus. Retirement savings include approximately $1.3 million in a 401(k) and $418,000 in a brokerage account. Pension options would provide either $8,000 monthly or a $1.4 million lump sum. The homeowner has a 2.25% mortgage payable in five years, a paid-off SUV, no credit card debt, and practices frugality with modest vacations. One year of severance plus unemployment eligibility and cash reserves create strong capacity to cover expenses during a job transition.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]