RECEIVING A BUYOUT OFFER IS CERTAINLY preferable to having a security guard escort you to the parking lot, but it can still be disconcerting—especially now. Many employees of airlines and other businesses decimated by the coronavirus pandemic may feel that they have no choice but to accept the offer because the next notice from human resources will probably have layoffs in the subject line.
Before you make any decisions, conduct a thorough analysis of your net worth—everything you own, everything you owe and all of your sources of income. Then do an inventory of how much you spend, says Thomas McCarthy, a certified financial planner in Marysville, Ohio. And don’t just jot down items that pop into your head. “We spend money on a lot of things we just don’t track,” McCarthy says. When people use bank expense-tracking apps or other tools to monitor all of their spendings, “it’s usually an eye-opener,” he says.
Whether you have a choice about taking a buyout or not, consider what will happen to your health insurance (see page 56). Still working but expecting a buyout offer? Schedule elective surgery, dental appointments, and other procedures covered by your employer’s health insurance to take advantage of that coverage while you can. Although some employers continue health insurance as part of the buyout package, such offers are increasingly rare.
Lump-Sum Versus Traditional Pension If your employer has a pension plan, one of the most difficult decisions you may face—in large part because it’s usually irrevocable—is whether to accept your retirement benefits as a lump sum or as a traditional pension with monthly payouts. Your choice should be based on a number of personal factors.
Diese Geschichte stammt aus der November 2020-Ausgabe von Kiplinger's Personal Finance.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der November 2020-Ausgabe von Kiplinger's Personal Finance.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.