Reduction in Force
Hi, Terry. I was rif’d and my last day is July 8, 2022. I will receive 36 weeks paid severance as I was with the company 18 years. My question is if I should take the lump sum or keep my salary. I was given the advise that I should take a lump sum and put it into an annuity? I am 56 years old.
Thank you very much. I always appreciate your advise on WGN.
Terry Says
Someone is trying to sell you an annuity!!! Don’t make him or her rich!
This is the perfect time to do an overall financial assessment with a FIDUCIARY — someone who puts your interests first and only charges a fee (not commissions, hidden or not!).
Read this article on my website to find one through Wealthramp.com (I get absolutely nothing out of this recommendation — except the confidence that you will be connected with a carefully vetted, fee-only FIDUCIARY financial planner).
You’ll discuss not only what to do with your severance (and be reminded of taxes that will be owed on it) but also what you’re going to do about health insurance (hint: Healthcare.gov will likely be less expensive than COBRA), and what you’re going to do next. You can’t simply “retire” at age 56. And now is the time to find taht next job– while employers are hunting for good people. (Hint: don’t forget to get glowing letters of reference from someone at your old company who valued your 18 years of service.)