Advice for the newly laid off?

My industry (television), like many others, is downsizing and offshoring.

I'm one of the latest folks affected by it. I have to admit, the company's being really cool about it. Resume & interview help, and a severance package that pays like a regular paycheck from now to December, so that I don't have to pay taxes on a "lump sum".

Full admission: I could find another job that pays me what I made in a heartbeat if I would relocate to New York, Los Angeles or Miami. I must admit that I'm not interested in doing so.

There's a couple of companies here in Atl that would hire me in a heartbeat, but they don't have the ability to pay what I used to make.

Current plan is to liquidate the 401k (been enrolled for 20yrs or more), and buy an older "fixer-upper" house oughtright. I figure that without a rent or morgage payment, we can live at the same level of comfort as we do now, even after my income is reduced.

Any suggestions?

what is your current field of expertise? Are you committed to staying in ATL or willing to relocate?

Liquidating the 401k is dangerous....you, me and many others here are probably in the "social security won't actually be there" generation so avoid it if possible.

Are you willing to relocate anywhere?

Good luck, I've got no good advice though. I'm on the job hunt too, although its just an internship-hunt. Applied to 11 so far, with no hopes of any of them getting farther than a phone interview, if that far. Its funny, lots of jobs for my major, but no internships.

I'd be wary of liquidating the 401K, too. Time is your friend with that type of savings, and once it's out you lose that advantage.

I'm sorry to hear about the changes -- but you seem to have a good attitude about your next steps, which is sure to help.

talk a little time to decompress.

Do NOT liquidate the 401k. The taxes and penalties will eat up so much of it you'll be left with very little.

As others have pointed out - unless you are old enough to start taking distributions from the 401k, don't do it. There will be a 10% penalty tax on top of the tax that you'd pay on the 401k distribution - no sense in giving Uncle Sam money that you'll need. Fixer-upper may be a good idea though - tons of inventory out there. If you can do that with the equity from your current house, that would be ideal.

But first - your severance package affords you the luxury of time, so take some to decompress and plan. If you need to feel productive, use the time to polish up the resume, so that you present your best face when you're ready. Hasty moves are pretty much never the right ones.

Liquidate your 401k? Are you insane?

Hey FGC, sorry to hear. Noticed a whole lot more stupid human programming on a formerly all animated network.

I'm not in your boat yet, but the clock here will run out in August. I'm planning a career change and my own business. I'm following the Red Guitar Bread thread closely, but not for baking tips.

The only advice I can give is talk to an accountant to find out how much of a hit you'll be taking on cashing out the 401. Then take your time looking for a fixer-upper. Like our project cars, they all need more work than expected. Get the cleanest one to start with. Preferably with a garage.

• Sorry to hear of your layoff.
• That's a pretty generous severance.
• It's not personal, and does not reflect on your value as a man / husband / father / etc so don't let it berkeley you up.
• Find out if there's any gubmint money available to you for education / training / etc
• Take your time.
• Decompress.
• Go about your normal life.
• Hit up daveramsey.com and find out if you can get into a Financial Peace University series somewhere close to home. Get your budget and finances in order ASAP if you don't already have that area of your life 100% under your control.
• Don't touch the 401k. You'll get horse-berkeleyed on penalties and taxes.
• Good luck.
• This community is an excellent sounding board. Don't be afraid to ask.

What AC said.

Also, most of the cities you list where you can make what you used to are very high cost places so it'll probably still work out like a pay cut.

And no, I wouldn't touch the 401k either.

Might be a stupid question, but do you have to be employed to do your job or can you do it as your own business?

Time for you to produce GRM TV since there's only a couple of watchable tv programs for gearheads.

Chill for a few days. It's a mind-berkeley. Sounds like you saw writing on the wall, which probably helps. I was blind-sided. berkeleyed my head up good.

+1 on not touching the 401K.

Does the severance apply even if you get another job? Can you take a lower paying job that you can get quickly, and basically be raking in 2 salaries for the next 10 months? And if so, apply 100% (or more) of that second salary to paying off the current house? Would that get you paid down enough that you could then live low rent on the lower salary?

I agree with the advice above.

One other point to ponder is Health Insurance for you and the family....do you still have it with the severance package, or do you need to get it?

Register for unemployment insurance. It helps pay the bills. DoNot liquidate the 401K. Oh, right . everyone already said that.

DILYSI Dave wrote: Chill for a few days. It's a mind-berkeley. Sounds like you saw writing on the wall, which probably helps. I was blind-sided. berkeleyed my head up good. +1 on not touching the 401K. Does the severance apply even if you get another job? Can you take a lower paying job that you can get quickly, and basically be raking in 2 salaries for the next 10 months? And if so, apply 100% (or more) of that second salary to paying off the current house? Would that get you paid down enough that you could then live low rent on the lower salary?

i respectfully disagree with paying a single penny extra on the house when a pay cut is looming. better to stack that cash in the bank for when it starts raining again.

Like Angry and Dave said, take is easy for a few days while you adjust to being unemployed.

On the 401K topic, I am not going to tell you not to cash it out early for buying a house. It might be a good move for you. I will tell you emphatically, DO NOT make this decision until you have decided exactly what you are doing for future employment and have moved well down the path implementing your plan.

Like it or not, your in moving into a big personal transition that puts most people off center, for a little while. Major life decisions like what to do with retirement money need to wait until you moved further along.

AngryCorvair wrote:

DILYSI Dave wrote: Chill for a few days. It's a mind-berkeley. Sounds like you saw writing on the wall, which probably helps. I was blind-sided. berkeleyed my head up good. +1 on not touching the 401K. Does the severance apply even if you get another job? Can you take a lower paying job that you can get quickly, and basically be raking in 2 salaries for the next 10 months? And if so, apply 100% (or more) of that second salary to paying off the current house? Would that get you paid down enough that you could then live low rent on the lower salary?

i respectfully disagree with paying a single penny extra on the house when a pay cut is looming. better to stack that cash in the bank for when it starts raining again.

fair.

Get a small part-time job in the meantime. Every bit helps.

gamby wrote: Get a small part-time job in the meantime. Every bit helps.

oldtin wrote: Time for you to produce GRM TV since there's only a couple of watchable tv programs for gearheads.

quoted both for trooth

Advice for the newly laid off?

GET OFF THE COMPUTER AND FIND A berkeleying JOB!

Hey, seriously though. Treat the severance as a bonus check; not a salary. Get to work!

Easy for me to say. I'd probably be drunk and surfing pr0n right about now.

Get dialed in on unemployment.

You paid into it, may as well collect what you can, and you never know if you're actually going to need it or not.

I can really only think of two things you will need.

You probably can't collect unemployment and severance at the same time.

DILYSI Dave wrote: You probably can't collect unemployment and severance at the same time.

actually you can. It depends on the state.

I did both in SC and made tons of money that year.