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.
Bu hikaye Kiplinger's Personal Finance dergisinin November 2020 sayısından alınmıştır.
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Bu hikaye Kiplinger's Personal Finance dergisinin November 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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