back arrowView show

12: Evaluating a Separation Package


Episode description

Chances are, you or somebody you know, have been offered a separation package from an employer.

Today, Scott shares with us “Rob’s” story. Rob was around age 60 and planned to retire at age 65 when his long-term employer offered him an attractive separation package that would equate to about 2 and 1/2 years salary, a bonus, plus a year of paid health care. Some of Rob’s concerns were getting his children through college without acquiring debt and maintaining his and his wife’s current lifestyle.

Scott walks us through the objectives that need to be considered, accounting of balance sheets, reflecting on liabilities, and the probability analysis. He also goes into detail about the baseline plan: which is, what do the next 5 years look like if Rob were to take this offer? Scott analyzes the success or failure of Rob’s plan. Follow along to find out Rob’s decision!

Show Highlights: 

  • Considering objectives: Getting children through college, maintain the current lifestyle, etc.
  • Having a detailed cash flow in place
  • Agreement on assumptions
  • Accurate accounting of balance sheets
  • Reflecting on liabilities
  • Probability analysis 
  • Concerns about paying for health care, pre-Medicare
  • Covering tuition without dipping into retirement accounts
  • Baseline plan - what do the next 5 years look like if you take this package?
  • Some expenses would have to be paid in alternative ways
  • Adding inflows and outflows, and making sure that taxes are right based on the value of separation package
  • Analysis reveals the success or failure of Rob’s plan
  • Additional help with taxes?
  • What to do with the stock?
  • Flexibility in charitable contributions
  • Donor-advised fund


Links & Resources:

episodes iconMore Episodes

11: Nurturing a Small Business, Maximizing Potential and Preparing for a Founder's Exit with Jeff Kadlic

June 24th, 2019


Nurturing a small business to maximize its potential while dodging the risks, plus preparing a business for an exit when a business founder wants out are the topics on today’s podcast. 

You will meet Jeff Kadlic, who …

10: Changing Careers to Follow Your Passion with Bob Paskins

June 10th, 2019


It’s human nature to desire stability in our lives, but we often have to overcome that drive for security to achieve our goals. Today’s guest, Bob …

09: Incorporating Philanthropy Into Your Financial Plan with Bill Hawke

May 27th, 2019


Incorporating philanthropy into your finances isn’t a requirement, but it is fulfilling and easily achievable if you happen to be charitably …

08: What You Should Know Before Investing in Real Estate with John Swagerty

May 6th, 2019


Real estate is a diverse market that is much more complex than commonly perceived. In today’s interview with John Swagerty, Senior Vice President at Acadia Realty Trust, Scott and John dissect what goes into evaluating …

07: Making Your Finances Mortgage Ready with Kim Bean

April 22nd, 2019


A home is one of the biggest purchases you’ll make in your lifetime, so why do people know so little about it? Todays’ guest, Kim Bean, has been a mortgage loan officer for decades and has seen the ups, downs, and …

06: Starting a Business After Retirement with Kim Netting

April 10th, 2019


Retirement doesn’t have to mean stagnation or mark the end of pursuing dreams. In fact, many people aspire and start up their own personal businesses …

05: Organizing Your Systems of Life with Beth Giles

March 18th, 2019


Everyone wants to be more organized in life, and most need to downsize their belongings along the journey. Today’s guest will help you with these goals. Beth Giles is the Professional Organizer/Senior Move Manager at NW …

04: Building Financial Confidence with Apollo Lupescu

March 4th, 2019


We all want to be financially educated and invest in companies we believe will be the most impactful in regards to what we believe in, all while …

03: The Everyday Guide to Tax Planning for Retirement

January 31st, 2019


Preparing for retirement doesn’t have to be difficult or overwhelming. Professional investment advisors are trained to help assist with each …

02: The Most Commonly Misunderstood Aspects of Implementing a Will with Melanie Marmion

January 30th, 2019


We all have questions when it comes to planning for our future and how to implement the best plan of action when it comes to setting a legal plan in place. When it comes to finances the majority of us have an …

01: Introducing Your Best Financial Life

January 14th, 2019


Working in the financial industry, I get asked a lot of questions about money everywhere I go. No one is immune from the stress that money creates in our lives. We all have questions that keep us up at night, and I want …

Loading ...

Download the RadioPublic app for
 FREE and never miss an episode.

Get it on Google PlayDownload on the App Store