Thread regarding Cisco Systems Inc. layoffs

before you leave, change your 401K to self-directed 'brokeragelink' account so you can ape into bitcoin ETF's. We are 600 days into an 1100 day bull run. 4X your money

Closely evaluate the cost of any annuity & the company issuing it. An anniuty is not an investment. It's a contract.

@ehr+1u11P5i8

Because it is much easier to set up the 72(t) distributions with one account. See a tax accountant to set it up. Yes I assume you could set up the distribution schedule on multiple 401ks from prior employers. My accountant told me to move everything to my last employer (I did that when I was at Cisco, before leaving), then when I did get LR'd it was simply setting up the singular 72(t) distribution and having the same tax accountant file our taxes every year. It cost me about $1,200 to set it all up (one time cost), and then the same accountant files our taxes every year for ~$180. No IRS issues. You can then get a part-time or on-and-off contracting jobs. There are plenty of easy IT contracting jobs that pay good money to supplement your 72(t) stipend.

Hope this helps a few folks out there. Do not despair. Research these 72(t) and "Rule of 55" choices and take charge of your life. You have worked hard, you deserve it.

One last thing, as have several friends over 50 and they are riding it out (staying). Imho it is indeed wise to stay (as long as you can), if you can stomach it, and wait to "invoke" your exit plan, if say you've been there for ~15 years, and have saved a good 401k nest egg, and are still putting $ away. The irony with the LR wave after wave is yes many folks that have been at Cisco for many years are indeed just waiting it out and doing the bare minimum. They wanted no reviews for years, so indeed what they get is a bunch of older complacent higher paid older workers, who just really do not care anymore. They ruined a once great company. Everyone has their hand in the pot.

The folks that do loose are the younger folks. Imho, you might want to move on. This gravy train has already left the station and it is going to eventually run out of track. Move on to a relevant company, do not waste your best years mired in mediocrity. Your payout is most likely not similarly set as much as the old-timers.

combine all your former 401k contributions, if different employers, into your current 401k.

Why does this help?

@nsq+1u11P5i8

The easiest way to do the 72(t) is to combine all your former 401k contributions, if different employers, into your current 401k. Then set up your 72(t) based on your one main current (Cisco) 401k.

As the other poster mentions, if you are 55, you do not have to worry about the 72(t). If age 55, just do the "Rule of 55".

The 72(t) is good for savers younger than 55, who get the LR. Mine was at age 52, so "Rule of 55" was not an option for me.

Ya'll have choices, never forget that. It is not as bleak as you might think. One door shuts, another opens. Put together a plan, even if you are going to stay. Then if they LR, do either your 72(t) or "Rule of 55", dependent on age. Big things are pay off debt, have 401k maxed as much as possible, and be in the age 50-ish timeframe at least.

Thanks for coming back here and being kind enough to share a tip that is working for you.

If you are 55 or older, another financial rule to consider is the 'Rule of 55':

Unlike 72(t), the rule of 55 does not require a certain amount to be withdrawn every year. Under the rule of 55, any amount can be withdrawn at any time between age 55 and age 59 ½ if the requirements for the distribution are met.

Source: https://rgwealth.com/insights/early-retirement-72t-rule-of-55/#:~:text=Rule%20of%2055%20vs%2072(t)&text=Eligible%20Accounts%3A%20The%2072(t,It%20does%20not%20cover%20IRAs.

Question: does the 15 yrs of tenure have to be in one continuous stint? What if you did 10 yrs and came back a year later for the remaining 5 yrs?