Layoffs and Buyouts
The Current Reality, and How to Protect Yourself
Ford Motor Company recently announced that it is targeting the elimination of 1,400 U.S. salaried jobs by year end as part of a multiyear $11 billion restructuring. The layoffs will be achieved through voluntary buyouts, the U.S. automaker said in an email sent to employees. The buyouts will be offered to employees who are eligible for retirement, according to an article published by the New York Times.
In these uncertain times, we have asked one of our sponsors, Robert Sinnaeve of SS&H Financial Advisors, to provide some advice to those who might be facing hardship or uncertainty, and specifically to those at Ford Motor Company.
- Most of the individuals will be offered some sort of incentive package to leave. Do not run out and spend it, as they might need to make it last.
- Some may be in the executive plan which could mean they have an option to Annuitize or take a lump sum from their pension plan.
- With rates as low as they are, a lump sum distribution is likely their best option.
- Take this time to get your financial house in order.
- Start with a Net Worth Statement. It should not be to detailed but everyone should know what they have and where it is.
- Consult with a professional to see if their money is working for them. A professional will help set goals and then will take steps to fulfill those goals.