Thread regarding Chevron Corp. layoffs

“The market is up 20% since you retired in 2016”... really... was not the market up almost 30% just last year? Currently I am still up from 2016. That said, I think we are now turning the crest of a dead cat bounce, so it is anyone’s guess where the true bottom lies in this cycle.

Closer to 4% and it ends at age 60. I’ll take my chances with stocks, thanks very much. You do you!

3pgv: agreed best to delay pension as long as you can, until age 60, as then there is no use in delaying any future...get the money and put it to work.

2out...exactly, deferring pension is by itself worth 5% a year, with no risk. If you can get by without it then there’s no need to take it to invest it. That’s straight up gambling. Would the person who brought this up have said the same if he retired in January 2020 and invested the precious lump sum in the market then! My original point was if you have a balanced retirement plan servicing your needs don’t take undue risk. I was tempted at times to do so but chose not to. Sense took over!

I voluntarily jumped ship from my FMT in 2017. The lump sum came in August but I continually received payments of some form for a full year after my departure.

@2rnf, wow, the market is up 20% in 4 years? so ~5% average per year. That's phenomenal,, NOT

2rnf: why do some folks think the topic of every thread here is lump vs annuity?

The market is up 20% since you retired in 2016. You missed a huge opportunity not putting the lump sum to work by investing it at your earliest opportunity. Some people take the package just to get the lump invested!

2rvg: Thanks the the info. Good to have some insights into what may well be my future soon enough. It is disappointing this site is so full of mindless trolls, as they tend to bury any real discussions.

Heck, I took off at 50 and haven't looked back. Can't spend it quick enough. Of course, having kids who are professionals and are capable of giving more than taking doesn't hurt either. I have never thought it a good idea to create any type of dependency (i,e, inheritance, etc) for children, but rather educate them on finances and how to support themselves and be independent. It has paid off and proven to be effective. YMMV.

Laid off in March 2016 at 54 yrs old.
Three months full pay until end June(3 months). Paperwork for one year severance shortly after, check received shortly after that. 6 months of unemployment payment (circa $12000). During this six months took Cobra health insurance so I could ultimately resume CVX insurance. Expensive but worth it in the long run. Vacation balance paid by check. Full bonus paid in 2016, partial bonus for 2016 paid in 2017. Shocking tax bill in April 2017 (six figures) due to all the aggregated earnings , bonus and severance paid in 2016, but as most was automatically withheld I didn’t have to write to big a check. Also got a check in mid 2017 for 401k limits (?). Have been living off severance etc since and have not had to initiate retirement yet. Maybe next year seeing as this year will be pretty low cost due to the virus. Have 5 years cash emergency fund so can wait for better times to start pension (lump and COLA annuity). 401k not hit too badly and has time to recover before I might need to dip in. This is not meant to brag and I realize after 34 years with CVX there’s a lot of value built up. However, when released from CVX I was very anxious, constantly calculating in my head whether we would be ok or not. Running models through the fidelity app however I realized that we were in much better shape than we thought and deferring pension payments boosts longevity of wealth. It’s not a one size fits all but sometimes it’s not as bad as it may seem initially. Be anxious then be calm but don’t make hasty decisions without understanding all the outcomes, even if (like me) you had never really had a retirement plan in place ‘cos I’ll do that when I retire. I did not expect to retire at 54, but I also never considered if I could. If I hadn’t been laid off it turns out I’d have just continued working to add to the kid’s inheritance!

1gsi: when I referred to the Republican’s 100 billion tax cut for the 1%, I was not referring to all business relief (there is over a $Trillion of that) but rather was referring to the pass-through corporation personnel tax deduction expansion that was for small businesses in Trump’s original tax bill, capped to those owners who make less than $300k, and was lifted “temporary” to include those that make a whole lot more. Specially a one tenth of one percent giveaway, allowing then to deduct personal losses as if it occurred to their “corporation“.

@1wml, the supposed $100 billion tax break that you claim is for the 1% in the American CAREs act, is actually for the businesses and corporations that keep countless tax paying citizens like you and me employed and contributing to the economy of our country. Stop thinking like a parasite or blind sheep. Wake up from being hoodwinked by the constant false narratives of the other party.

eqj: yes I read that the Republicans put in a 100 billion tax break for the 1% in the American CAREs act. Those as##oles never miss a chance to hand public funds to their rich donors... no worries, just add it to the bill we are leaving the kids.

You will wait 6 to 8 weeks for your lump sum. Your severance bonus will be assessed highest withholding tax rates applicable.

@eqj, Oh, $1200, is that all you get? I wasn't referring to that. I get way more than that with the value of my tax break. You don't even want to know, I hate to crush your little spirit, junior. Just keep on thinking and believing what you do now, you'll be better off, lol.

uke: That was not the OPs question, but the answer is in my case I do not get one. I do however get a very nice personal pass through corporation tax break that was hidden in that relief bill, which is worth much more than your $1200.

I was laid off in 2016. The IRS has a hard rule on all bonus and severance payments of 25% federal tax withholding. That much you should know and prepare for. Concerning the timing of when you’ll get your severance check is dependent on a few things. First off, the employee must first wait for the WARN period to expire while still technically on the company payroll. You may also have to use up any vacation time you accrued, unless HR has agreed to pay you for it. Once you are off the payroll and have received your last paycheck, the company’s legal department will quickly send you via FedEx the severance papers to sign and return to them within a specified time frame, maybe 30 to 90 days. Once you return the signed papers with waiver disclosures, they will approve payroll to issue your severance check. The check will be sent in accordance to the established payroll processing times, so it could take at minimum 15 days to arrive in the mail. The HR policy is to issue checks only, not direct bank deposits. If the legal approval to pay your severance came to payroll in the midst of a current processing period, the check can be delayed another 15 days. The only control you have over how soon or how late you get the severance payment for tax purposes, will depend on how quickly or how late you have to sign your severance and waiver documents and get them back to the legal department. If the timing of layoffs comes late in the year, around November or December, at least those people who get laid off can postpone their severance pay into the next tax year.

I already got my assistance deposit. Where's yours?

If you spank your monkey for too long the annuity troll will make sure that all you get is the lower value lump sum and no severance, which will deplete quickly in this situation.

udt: tax rate might depend a lot on if the check arrived late in the year that you had already received most of a years pay or early in the following year when you had no other moneys coming in.

I'd be curious to hear how much in taxes they take out (from severance)