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Posted: 3/22/2006 3:42:57 AM EDT
[Last Edit: 3/22/2006 9:57:57 AM EDT by shop_rat45]
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?
Link Posted: 3/22/2006 3:44:46 AM EDT
Link Posted: 3/22/2006 3:44:50 AM EDT

IBTUB


(in before the union bashers)


Link Posted: 3/22/2006 3:45:39 AM EDT
If you've already got an established business going I would take the money and run.
Link Posted: 3/22/2006 3:45:43 AM EDT
I took early retirement (20yrs) with a package that is nowhere near as pricey as yours.
Depends how bad you want out. I wanted at any cost.
Perhaps GM may offer you nothing in 2-5 years.
Link Posted: 3/22/2006 3:45:45 AM EDT

Originally Posted By lippo:
IBTUB


(in before the union bashers)





+1

How old are you?


Good Luck.
Link Posted: 3/22/2006 3:47:26 AM EDT
Take the $$ and do the sign busniness! Nothing beats being your own boss!!
Link Posted: 3/22/2006 3:50:34 AM EDT

Originally Posted By MTUSA:
Perhaps GM may offer you nothing in 2-5 next week years.


A job is just a job. Take the cash and start looking for a new one.
Link Posted: 3/22/2006 3:51:38 AM EDT
[Last Edit: 3/22/2006 3:52:02 AM EDT by BOBK48]
After taxes it won't be 100K. How many years at GM? I'd take the money and run! Don't know what the future at GM will be like. They could just have a layoff and you'll get nothing.
Link Posted: 3/22/2006 3:52:10 AM EDT

Originally Posted By Punani:
Take the $$ and do the sign busniness! Nothing beats being your own boss!!



'Depends whom you're werkkin' for....
Link Posted: 3/22/2006 3:55:25 AM EDT
When you do your risk reward analysis IMHO you can not count on your GM benefits because they are in pretty bad shape and will most likely bail on most of their former employees.

I am of the belief that you should never depend on the company that you made your living with for your retirement. They have no vested interest in your up-keep so you are just overhead to be eventually cut.

If you can afford to walk I would say do it but there is a lot to consider and that is what you need to do.

Keep in mind that if you are bringing home 50K per year net, you are only looking at a 22 or 23 month income stream.
Link Posted: 3/22/2006 3:56:39 AM EDT

Originally Posted By BOBK48:
After taxes it won't be 100K. How many years at GM? I'd take the money and run! Don't know what the future at GM will be like. They could just have a layoff and you'll get nothing.

Exactly! $100,000 cash payment from your employeer=$65,000 depending on your state income taxes. Something to think about, also you have to consider how much you have made year-to-date. That $100,000 + what you have made so far could stick you in the highest income bracket.
Link Posted: 3/22/2006 3:58:12 AM EDT

Originally Posted By 82ndAbn:
I have no idea what you'd be sacrificing in order to accept that sum of cash but whatever you choose, I wish you the best of luck.



Well, I would only lose my pay and retirement. My wife also works for GM, so her health insurance would cover me. My wife and I have discussed me leaving GM for my business and she supports me 100%. As I said, we were working towards this anyways. This would be just an extra incentive.

But, this would be a big jump for me. I know I can do it, but there is always that feeling of failure in the back of my head. I'm only 26, so I have my whole life ahead of me (God giving). Thank you for the good wishes. I wish you the same.
Link Posted: 3/22/2006 4:00:52 AM EDT
I wish they'd offer me 100k to move on from work.
Link Posted: 3/22/2006 4:01:39 AM EDT
Questions you should ask yourself:

How much will this be after taxes.

How old am I now and how long before my kids are out of college.

Will this amount enable me to reduce my debt load (mortgage, car payment, etc.) to a point where I can manage on my retirement alone in case other things don't work out.

Do I want to leave my present job.

If GM goes belly up, will I have a pension.

There are a lot more questions. I'm considering a similar situation and if I can swing it later this year, I'm going.
Link Posted: 3/22/2006 4:05:33 AM EDT

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?



If you think there is a good chance (say 40 to 60%) that you will get laid off anyway, taking the money might be the best option.

Security is going to be hard for you to come by whether you stay with GM or start your own buisness.

Good luck.
Link Posted: 3/22/2006 4:06:35 AM EDT
[Last Edit: 3/22/2006 4:07:05 AM EDT by MTUSA]

Originally Posted By TheCynic:

Originally Posted By MTUSA:
Perhaps GM may offer you nothing in 2-5 next week years.







Ha! Thats what I meant
Link Posted: 3/22/2006 4:07:06 AM EDT
after taxes? if so, yes. you can invest that in half short and half long term adn live decently for a bit.
Link Posted: 3/22/2006 4:07:27 AM EDT
They're going bankrupt, don't like you, and next time they offer you a chance to leave it may be $0. Seems like a easy decision, take the $ and run
Link Posted: 3/22/2006 4:09:17 AM EDT
what do you mean you will loose your retirment? don't you have a 401k and haven't they already vested on however much you have put in. how can they take that away.

P.S. I don't understand much about retirment.
Link Posted: 3/22/2006 4:15:58 AM EDT
Take the money and pay off your house (if it will cover it), thereby alleviating the biggest single expense most people ever have in their lives. You'll be 26 and without a house payment. Kinda makes transition to something else a little less stressful. And if you should eventually have to relocate, selling your house is 100% profit.
Link Posted: 3/22/2006 4:16:40 AM EDT
100K is better than a kick in the nuts.
Link Posted: 3/22/2006 4:16:52 AM EDT
Link Posted: 3/22/2006 4:17:46 AM EDT

Originally Posted By enigma2y0u:
what do you mean you will loose your retirment? don't you have a 401k and haven't they already vested on however much you have put in. how can they take that away.

P.S. I don't understand much about retirment.



No 401k. I've only worked here for 5 years. As of now, 30yrs, you are guranteed (supposedly ) a full pension. After 10 years, you get a pension, but it's barely anything. With my time, I don't have enough to get any pension.
Link Posted: 3/22/2006 4:21:18 AM EDT
GM is offering a fools bet. I bet there will be plenty of fools who will take it. They will be broke 24 months after they walk. Looks like it's gonna be a 2yr party here in Michigan.....until the money runs out.

Shop_Rat $100k ain't shit.

Keep working for GM & keep the sign gig as a side biz.
Link Posted: 3/22/2006 4:21:54 AM EDT

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?




MMMMMmmmBullshit!

Y­ou just want the dough for Machine guns and suppressors, the sign business is just at cover!

If it were me, I'd use the money to pick up stakes and move down south. You could get a hell of a piece of property with a house on it for that kind of money with STILL a year's worth of income left over. After that, a gas station job could get you by if times got tight.

Do it.
Link Posted: 3/22/2006 4:21:57 AM EDT
... How long do you have to answer?
Link Posted: 3/22/2006 4:31:03 AM EDT
Are you and your wife disciplined enough to sit on that much cash and only spend it on making the business work instead of buying new things and taking vacations? Are you in a position where you two can make it for a couple years based on her income alone? If the answer to both questions is yes, then grab the money and jump start your business. You need to talk to an accountant though to find the best way to shelter that money from taxes because you will lose close to half of it. Look at incorporating your business and see if there is a way to work that $100,000 into the startup of the corporation.
Link Posted: 3/22/2006 4:31:53 AM EDT

Originally Posted By SouthHoof:
GM is offering a fools bet. I bet there will be plenty of fools who will take it. They will be broke 24 months after they walk. Looks like it's gonna be a 2yr party here in Michigan.....until the money runs out.

Shop_Rat $100k ain't shit.

Keep working for GM & keep the sign gig as a side biz.



I don't think many will take the $100k. I just don't trust the auto industry and when both my wife and my incomes depend on it, I don't feel secure. The sign business is getting to the point that it is interferring with my GM job. I just don't have enough time to do them both. I hate my job at GM and love the sign biz. Plus, I'm not going to just waste the cash on hookers and blow. It would be an investment towards the business. We'll see.
Link Posted: 3/22/2006 4:32:12 AM EDT

Originally Posted By TheOtherDave:

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?




MMMMMmmmBullshit!

Y­ou just want the dough for Machine guns and suppressors, the sign business is just at cover!

If it were me, I'd use the money to pick up stakes and move down south. You could get a hell of a piece of property with a house on it for that kind of money with STILL a year's worth of income left over. After that, a gas station job could get you by if times got tight.

Do it.



Move down to Kentucky or West Virginia and go to work for Toyota, since you already have auto industry experience. Just an idea.
Link Posted: 3/22/2006 4:33:52 AM EDT

Originally Posted By TheOtherDave:

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?




MMMMMmmmBullshit!

Y­ou just want the dough for Machine guns and suppressors, the sign business is just at cover!

If it were me, I'd use the money to pick up stakes and move down south. You could get a hell of a piece of property with a house on it for that kind of money with STILL a year's worth of income left over. After that, a gas station job could get you by if times got tight.

Do it.



You caught me.
Link Posted: 3/22/2006 4:33:56 AM EDT
If you've only been working for them for five years, I'd be leaning hard toward taking the money and running while the running's good. If you're planning to leave soon anyway, it's a no-brainer to me at least. I guess it depends on your salary. It's a big difference if you're making 20K vs 150K per year.
Link Posted: 3/22/2006 4:34:56 AM EDT

Originally Posted By Winston_Wolf:
... How long do you have to answer?


This was just announced today. I'm not sure how long we have. Hopefull another couple of months or so. That would really help make the decision.
Link Posted: 3/22/2006 4:35:04 AM EDT
I wouldn't do it, but I am very risk averse. GM has a very nice pension & benefits setup.


Then again, if GM goes bankrupt, that may all disappear. Maybe you should take the money while they are still offering it.
Link Posted: 3/22/2006 4:36:18 AM EDT

Originally Posted By SWIRE:
Are you and your wife disciplined enough to sit on that much cash and only spend it on making the business work instead of buying new things and taking vacations? Are you in a position where you two can make it for a couple years based on her income alone? If the answer to both questions is yes, then grab the money and jump start your business. You need to talk to an accountant though to find the best way to shelter that money from taxes because you will lose close to half of it. Look at incorporating your business and see if there is a way to work that $100,000 into the startup of the corporation.



I would think we would have enough self control. I plan on talking to an accountant before signing on the line.
Link Posted: 3/22/2006 4:40:27 AM EDT

Originally Posted By shop_rat45:

Originally Posted By 82ndAbn:
I have no idea what you'd be sacrificing in order to accept that sum of cash but whatever you choose, I wish you the best of luck.



Well, I would only lose my pay and retirement. My wife also works for GM, so her health insurance would cover me. My wife and I have discussed me leaving GM for my business and she supports me 100%. As I said, we were working towards this anyways. This would be just an extra incentive.

But, this would be a big jump for me. I know I can do it, but there is always that feeling of failure in the back of my head. I'm only 26, so I have my whole life ahead of me (God giving). Thank you for the good wishes. I wish you the same.



Good lord you're only 26 and they're offering you this kind of buyout? I assumed you were at least late 40's and they were trying to screw you out of your retirement package.

Hell, yes I would take it. You have another 30+ years of earning years left and that 65k after taxes, if invested properly, could be worth quite a bit of money by the time retirement rolls around.
Link Posted: 3/22/2006 4:42:37 AM EDT
[Last Edit: 3/22/2006 4:43:25 AM EDT by TrijiCog]
Your sign business will do good as long as you don't unionize That way you won't have to pay an employee $25.00 an hour to turn on the lights every morning...J/K dude...

Seriously,look at what GM is going through right now..shrinking market share,huge money losses,layoffs are inevitable.All the striking workers won't be able to do a thing when nobody is buying GM products.What do you do at GM now ? Are your skills able to transfer to a real world job ?

I would take the cash because I think GM won't be around in thier current form in the next 3-5 years.

Sounds to me like you have already made up your mind though.

Good luck in whatever you decide.
Link Posted: 3/22/2006 4:44:18 AM EDT
Link Posted: 3/22/2006 4:45:13 AM EDT
[Last Edit: 3/22/2006 4:47:26 AM EDT by wildearp]

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?



100K will be considered a gift by the IRS. You will only get $50K. Gift tax=50%. What do you think?

If you don't take it, will they make the deal sweeter later on? How long do you think you will last if you don't take it? What are your job prospects if you leave?
Link Posted: 3/22/2006 4:45:49 AM EDT
At 26 I would take the money and run, unless you loved your job. Do check with an accountant or financial planner - 100K in an IRA may beat 65K in pocket at your age.

Link Posted: 3/22/2006 4:47:51 AM EDT
You're 26 and you have to think about this???



Take the money and run.

For the record, I grew up in a GM household. My stepfather always complained about how it was going down hill, union and all. He worked there from the late '60's till he retired.
Link Posted: 3/22/2006 4:48:54 AM EDT

Originally Posted By wildearp:

100K will be considered a gift by the IRS.



WTF???

Go back to whatever you were doing before financial planning. Please.
Link Posted: 3/22/2006 4:51:37 AM EDT
Take the money and RUN!

Seriousley.
Link Posted: 3/22/2006 4:51:51 AM EDT
Take the money.

If GM does well the wife and you will benefit.

If GM fails you at least have a serious chunk of change right now.

If you invest most of the money right now and leave it alone for 20 or 30 years you should be able to retire happily.

Overall with how GM is doing right now I would take that 100k without a 2nd thought and count my blessings that I could afford to get retrained or whatever in another area that won't be downsized so easily. And yeah I know your sign business is picking up from what you posted but I would still be making sure you could make yourself easily employed if that falls through.

I think someone said 100k is not much, when you are 26 and can invest that money for 20 or 30 years that is a lot of money potential.

And do talk to an accountant since it might be well worth investing the 100k if you can skip taxes on it and then figure out how to do a loan or something from your own money and you will pay yourself back the interest.

Heck, talk to a couple accountants and see what the options happen to be.
Link Posted: 3/22/2006 4:51:52 AM EDT
Also, I don't have any kids and don't plan to.
Link Posted: 3/22/2006 5:02:57 AM EDT

Originally Posted By wildearp:

Originally Posted By shop_rat45:
If you haven't read it in the news, GM is offering a lot of buy out incentives for employees. I fall into the bracket to walk away with $100k cash. In would not get any benifits or anything except the cash. My wife and I have been working towards the point that I could quit and do my sign business anyways. This would help me get to that a lot faster. So, think I should take it?



100K will be considered a gift by the IRS. You will only get $50K. Gift tax=50%. What do you think?

If you don't take it, will they make the deal sweeter later on? How long do you think you will last if you don't take it? What are your job prospects if you leave?



Wouldn't that be considered more of a severence package?
Link Posted: 3/22/2006 5:06:24 AM EDT
YES START A BUISNESS OF YOUR OWN.
Link Posted: 3/22/2006 5:07:55 AM EDT
..........if they go belly up, you get NOTHING
Link Posted: 3/22/2006 5:12:59 AM EDT

Originally Posted By shop_rat45:

Originally Posted By enigma2y0u:
what do you mean you will loose your retirment? don't you have a 401k and haven't they already vested on however much you have put in. how can they take that away.

P.S. I don't understand much about retirment.



No 401k. I've only worked here for 5 years. As of now, 30yrs, you are guranteed (supposedly ) a full pension. After 10 years, you get a pension, but it's barely anything. With my time, I don't have enough to get any pension.




you've only been there 5 yrs?

what did you do there?
Link Posted: 3/22/2006 5:16:48 AM EDT

Originally Posted By fight4yourrights:
..........if they go belly up, you get NOTHING



That's one of the biggest things I keep thinking about.
Link Posted: 3/22/2006 5:20:29 AM EDT
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