Some Things to Consider for Early Retirement Offer
Posted on Saturday, October 17th, 2009
Will the buyout money be enough to live on, or will I need to find another job?
The first step when evaluating a buyout package is to determine if the lump sum payment, combined with your other investments, will provide enough income to meet your living expenses. When making this calculation keep in mind that most financial planners recommend pulling no more than 4% per year from your investments. This conservative approach helps to ensure the money will last as long as you do. If you will need to draw more than 4% to meet your living expenses it may be a good idea to supplement your investments with a new part time job.
If I need to go back to work do I possess skills that are in high demand?
It is important to take an honest look at your skill set, and at the demand for the types of jobs you are qualified for. If you see page after page of want ads seeking your types of skills it should be easy to find a great job after the buyout. If the skills you possess are rarely sought in today’s marketplace you may want to tread more carefully.
Am I eligible for any kind of state or Federal retraining program?
There are many state and Federal programs designed to help those who need to update their skills, but the time to find out about those programs is before you accept the buyout. It is important to ask about retraining programs and other benefits for which you may qualify.