redundancy

[Farm boy]

Hi guys
i was talking to ashore a few weeks ago and told him i have redundancy prospects in june 2007 i will be 42.
has any other members gone through this? the money is good they are offering i will be debt free and a big wack in the bank,is it normal to be scared of the future?
i can work for the new company but it will take 9 years to get to the same financual(sic) position a redundancy gives me and have these new ir laws hanging over my head
what are your opinions
best wishes
greg

[Auld Bassoon]

G'day Greg,

The answer, as is nearly always the case, is "it depends". I'd recommend that you speak with a financial advisor, as quite a few things will need to be factored in, much more than the redundancy payment.

[Greg Q]

Also, what are the 'big picture' considerations? I would try to gauge the prospects of getting a better package if the economy/industry/company went south.

The only thing that I fear in these choices is choosing badly, and not being able to recover. In my case I had to change countries a few times, but eventually I got the hang of it. Now:

THE BIGGEST MISTAKE I EVER MADE IN LIFE WAS LISTENING TO A FINANCIAL ADVISOR AFTER GETTING A HEFTY SETTLEMENT.

It only took him 18 months to abscond with it all, leaving me (and others) to pick-up the penalties on top of the loss.:mad:

[Daddles]

You can't beat debt free. Even if you just pump petrol at the local servo to buy groceries, debt free sets you up for life ... provided you're smart enough to keep it that way.

Richard

[maglite]

Some will suggest sticking the wack into Super, great idea but you will find that you cant make use of it until it matures.

41 and debt free.....as others have said your already ahead of the pack by a mortgage payment at the very least.

What you have to ask yourself is thus:
How much money per FN/Month do i need to live my current lifestyle.
Then you find a job that pays it, if you dont like it......you can leave and find another, simply because you CAN.

I dont know about you........but i know what i would do.

[dazzler]

Hi Farmboy

Spose it depends on how much you value your current job.

I have been playing a similar thing in my head for some time. Not that I am up for a redundancy but thinking of a sea change as cornie as that sounds.

I flip from one decision to the other almost every day.

I am looking at dropping around $30k to do what I would like to do and am still not sure.

My 2c is dont do anything unless you are really happy. (Der )

My other experience from when I lived in canberra when redundancies were all the rage was that most didnt end up debt free but ended up with bigger houses and bigger cars and holidays. Spose thats where you need to be controlled.

The other thing is if you are dropping down the ladder a fair way how hard would it be going into work each day being the underling.

Wouldnt worry about the IR laws. A good worker is an asset that an employer wont get rid of unless thier stupid

good luck

dazzler

[Shedhand]

Give Financial Advisors a wide berth. They have a tendency to tout products for which they receive trailing commissions. And they continue to receive these whether your investments rise or fall. Over a two year period I lost 30% on the advice of my financial Advisor. He continued to receive his 4.8% of my contributions regardless. I dumped him and his company.

Park your money in an on-line Cash Management Fund (CMF) with some one like St George (www.dragondirectcom.au), Adelaide CMF (www.adelaidebank.com.au) or CBA Netsaver (www.combank.com.au) which all pay 5.4% monthly on the daily balance. No fees. After you've done that ask your Union to recommend an Independent financial Planner or ring the ACTU who maintail a list of ethical financial planners.
Don't invest in Siberian Llama farms or Alice Springs Pawlonia Plantations.

That'll be 300 bucks thanks.

Cheers

[dazzler]

I recommend those Nigerian Money Schemes!

[Shedhand]

Hello kind Sir
My name is Alphonso Plentycash. My good friend who was hanged recently owned the President Bank of Mombasa. I need your account number so I can share my many good fortune with you......

[Farm boy]

hello alphonso
i am more than happy to share a bottle of red with you anytime and help me build my workbench if you are ever in newcastle but to get my bank account number you have to go through my wife and man i have to write a withdrawal slip out any time i need money:eek: so you my freind have no chance sorry
best wishes to your planes and bench
greg

[Shedhand]

hello alphonso
i am more than happy to share a bottle of red with you anytime and help me build my workbench if you are ever in newcastle but to get my bank account number you have to go through my wife and man i have to write a withdrawal slip out any time i need money:eek: so you my freind have no chance sorry
best wishes to your planes and bench
greg

LOL...there's a lot to be said about being single and free...
Don't tell my missus I said that. SWMBOATT has grandkids near Newcastle so you never know we might get to share a nice Hunter Valley red.
Cheers

[Farm boy]

anytime sheddy
if it happens(and i am in the wifes good books) we might be able to organize a newcastle ubeaut bbq and drinks arvo at my place

[Andy Mac]

Hi Greg,
I'm sure the wiser counsel from the financial experts would be the one to listen to. My opinion...I reckon sieze the moment, do what you feel is right!!
I'd love to be put in that position...mortgage free and just having to concentrate on living expenses! My part time work/passion would soon move to full time self-employment, and the 'tooling up' I've done over 20yrs would suddenly seem worthwhile (esp. to the missus! ) Are you able to utilize your woodwork etc to make a moderate income, or would that spoil your hobby?
Sheesh, just thinking of what Dazzler said, what it would be like to drop a whole $30K...the term "bones of my @rse" springs to mind...:eek:

Good luck!

[namtrak]

Get rid of the debts, particularly the ones over the home you live in.

Be wary though that a big wad of cash can very quickly become a small wad of cash. People get all excited about the big payouts which sound like a lot, but when you start using your capital funds for day to day living, the big payouts only last a couple of years.

I would be inclined to pay off all debts, get the balance into some long term investment somewhere (either property or managed funds) and then find another source of income to sustain your lifestyle.

We know once we become debt free (whenever this blasted house is sold) then we will still need around $700 per week to live comfortably (family of four), which can be problematic, given that we probably need another 2/300 per week to increase our investment situation to a comfortable one in about 20 years.

[Bodgy]

Without knowing more details of your situation, I would say take the $$.

You do need financial advise but its very hard to get a competent or honest advisor. Most just flog the products they get commission on. Maybe try 3 or 4 and see how their advice differs.

Do be prepared for a feeling of a sudden loss of status in life. This is temporary (and completely ridiculous) and it does pass.

Make sure that you have a PLAN. You'll go crazy stooging around at home.

It is normal to be scared of the future and the unknown, but it's also pretty exciting.

Being debt free and having a bit in the bank is an excellent situation. Its known as having 'fu78k off money' IE you no longer need to take shzzt from anyone. Except the various levels of Gov but you've got to be a Packer or Murdoch to avoid that.

I think it's really about knowing what you want to do and what makes you happy. Decide that and then see if you can make enough of a quid to get by and indulge yourself.

Do all this before you sign the papers. If you're in the bush whilst living is cheaper, you have less employment options than the city.