Comments on: Ford Offers Employee $50,000 To Leave

By: fathersez

fathersez — Sun, 08 Mar 2009 14:21:42 +0000

Mark already has a side business going on. He should also know that the car industry is not exactly hunky dory.

I agree with what DR told him and this seems to be almost unanimous.

I am not sure of the tax position which one of the commenters talked about, though.

By: Personal Finance Roundup

Personal Finance Roundup — Sun, 08 Mar 2009 12:18:57 +0000

[...] Ford Offers Employee $50,000 To Leave. Would you take $50,000 and 5 years free health care coverage to leave your job? I would. In a heart beat. [...]

By: Do You Dave Ramsey?

Do You Dave Ramsey? — Sat, 07 Mar 2009 17:21:43 +0000

Nice read on Mark’s situation… I listened to that same call on my iPod the next morning as I was working out and my thoughts mimiced yours exactly.

I was offered a buyout in December and took it effective mid January. I’ve don’t exactly as you’ve instructed… put the cash in savings and draw from it at a rate equal to planned expenses. While, I don’t have a paying side hustle just yet, I’ll treat side, temp, contract, or even fulltime jobs in just the same way.

Great to see my approach validated! Thanks for article!

Dave

By: TStrump

TStrump — Sat, 07 Mar 2009 07:33:22 +0000

I would take the offer and run!
You can always find another job but how many times in your life is someone going to offer you $50,000?

By: freegal

freegal — Fri, 06 Mar 2009 15:26:13 +0000

The $50,000 sounds good, but – it depends on how they structure it. My DH got a lump-sum buyout when he was laid off in 2001. Because he was 49 there was a penalty charged (10% I think), plus a hefty tax withheld unless the monies were rolled over into a retirement account of some sort.

By: Citi Forward, A Credit Card That Rewards You For Using Credit Wisely

Citi Forward, A Credit Card That Rewards You For Using Credit Wisely — Thu, 05 Mar 2009 05:19:08 +0000

[...] Frugal Dad: Ford Offers Employee $50,000 To Leave [...]

By: Dominique

Dominique — Wed, 04 Mar 2009 09:04:20 +0000

I would also take the $50K payout as if and when the company does go down you wouldn’t even get a single cent from it.

By: tammy

tammy — Wed, 04 Mar 2009 01:11:47 +0000

I would so take the $50K and health insurance. $50 would go a long long way on a frugal budget.
Good point to pay yourself FD. Great idea.

By: Girls Just Wanna Have Funds

Girls Just Wanna Have Funds — Tue, 03 Mar 2009 14:10:48 +0000

AMEN @ If someone offered me a $50,000 check and insurance for five years I take it before the ink dried.

Ditto, you wouldnt have to ask me twice. I would do my darndest to pay down most of my debt before accepting the offer while looking into moving to a new area, learning new skills and start anew.

I think one thing that’s odd to me is that these folks relied on ONE industry in their area for their financial well being. I know that history says their parents were able to graduate on Friday and have a job on Monday then retire 30 years later somewhere but that’s a bit narrow for me. Along the way I would have learned some new skills, went to school etc so that if/when something like this happens I’d be prepared. But hey, that’s me.

By: Peb

Peb — Tue, 03 Mar 2009 13:33:03 +0000

I’m a Canadian news reporter and have been offered a buyout of $41,000 (before taxes) with no health and life insurance coverage beyond three months.
I haven’t found another job and, being the main breadwinner, can’t handle the risks involved. But… I am kicking myself for not taking the buyout. The work environment has become poisonous, with this sense of impending doom seeping from the cubicles and… I no longer want to work here.
My advice, take the money and find your own way.
And if there’s another round of buyouts after these layoffs, I’m taking one and getting the hell out of here.
Good luck!