http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B691283FD%2D6169%2D455E%2D8401%2D0BEE157D16BF%7D&siteid=mktw&dist=nwhpf
LIFE SAVINGS
Show me the employee-buyout money
How to determine if a one-time or annual payment is your best option
By Jonathan Burton, MarketWatch
Last Update: 8:03 PM ET Jun 11, 2006
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SAN FRANCISCO (MarketWatch) — It isn't easy to decide whether to accept an employer's offer of a job-buyout package. Forfeiting your livelihood often means downsizing your own lifestyle, and if you need to keep working, you may face a tight job market.
Moreover, accepting an early-retirement or severance package sometimes calls for a crucial but baffling choice: whether to collect one big payout or a stream of income over time — usually several years at most, to usher you into retirement. While the regular payments do offer security, people more often are drawn to the large lump sum. But be warned: If you choose the one-time payout, make sure you handle it wisely.
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Having received each one of those, I agree it easy to:
(1) forget your silent partners Uncle Sam (Federal Income Tax), Father State (the People's Republics of New York and New Jersey — yes both got their hooks into one), Mommy Government (the Social Security "Insurance" ponzi scam), and the Nanny State (the Inflation makes savings worthless).
(2) that it really isn't a lot of money, if you have nothing coming in. When you're young, it's a "no brainer". When you're an old fogy, it's a hard decision.
(3) "they" are out to screw you. If it's severance, count your change and your fingers. (Don't be cheap; use a labor attorney to review the document, they want you to sign! It was drafted by THEIR lawyers.) If it's a buy out, make sure you don't leave a nickle behind. (Don't be cheap; use a CPA to explain it to you in small words. Remember their CPA planned it.) If it's a windfall, be smart about taking it. (Don't be cheap; have a lawyer AND an accountant advise you. You may be able to or need to shelter it.)
I can tell you FIRST hand that I paid tuition at these three "schools". Expensive lessons!