Does anyone have advice for an over 50 U.S. Salaried employee who may be laid off? Not yet 55 but does have 25+ years of service. Any options?
15 replies (most recent on top)
"Yes, take out another loan."
Only someone still living paycheck to paycheck in their 50's would suggest something so stupid.
@3Fudo -- you're 63 now, but 46 + 25 = 71, meaning you started your business 8 years before being laid off from GE?
Most of us would find it difficult or impossible to follow that model, but I'm glad it worked out for you.
I got laid off from GE when I was 46. Started a business 25 years ago and have never been happier. Semi-retired at 63, have someone running it so I can travel. There is life after GE.
Get your resume ready. Update your LinkedIn account. Start applying for jobs. Conserve your funds. Leave as soon as you can because if you are not laid off in this round you might be in the next. There are employers out there who value experience. Look at government jobs if near you. GE will replace you with someone who is younger and probably a woman or a minority or both, even if that person is not qualified. And good luck to you.
A rule of thumb.. you'll be out of work one month for every $10k of yearly salary you're looking to replace. That's a fact, Jack
I'm giving advice to many people who actually do live week to week. very few people of any age in the US have 6 months emergency savings. That's also a fact. I am not one of those as suggested. I'm doing very well, thank you and could be whacked today and my life wouldn't skip a beat.
Your GE severance won't get you very far if you have a mortgage, kids in college and other heavy bills.
A home equity loan costs close to nothing to get and it's there for insurance against a lengthy absence fro a steady paycheck.
There are no payments if you don't use it.
And you will NOT be able to get one once you've been right-sized.
@3vsk you must be a GE manager, lol!
To the OP, do not take out another loan if you are about to be layed off. Your pay will continue at 1 week per year of service, plus unemployment. Cut your bills now (sell that new car and get a cheap one). Pay off credit card debt. Start today if you haven’t already in building that emergency fund of 6 months expenses.
Wow, you are 50 and still living paycheck to paycheck?
At that age you will never recover from taking on more debt.
You maybe suffering from tunnel vision. There are tons of jobs out there that will be a good fit.
They are probably not going to be in your neighborhood.
Life is an adventure. Just learn how to sell yourself properly. Just like the schmuck that sold you your last car did.
Yes, take out another loan.
You obviously have no financial savvy.
You only make a small monthly interest payment at a very, very low interest rate only on the amount you've used.
Example, take out a $200k line of credit. Use nothing, pay nothing
Use $10-15k to pay your regular mortgage and groceries for a few months while in transition. Monthly payment on that is peanuts.
But, hey, lose your house and use your 25% credit cards to get you by.
Worst advice I’ve ever heard...take out yet another loan if you’re about to lose your job??? WTF?
Do you recommend drilling more holes in my leaking boat?
First, if you own a home, get a home equity line of credit now, like before the end of the next week. You'// be able to use that and help keep you solvent during your job search. You won't be able to get that after you're laid off.
Find local job seeker networking groups as they'll help you polish your resume and provide a wide network of contacts.
If you get cut, tell everyone you know that you're looking for a job. Someone knows someone who's in need of your talents.
Good luck
I’m around 40 with small kids so would be hard for me to move or travel at this point. If I was in my early 50’s, and could move/travel, this would be my advice. Get a job overseas as an expat for a few years. Make bank for 3-4 years, then retire early. I was offered 250K a year in Saudi recently, but there are better places to go with similar offers.
My advice (I’m in the same situation) is to get your resume updated and be prepared for a new job hunt. Your fate at GE is outside your sphere of influence at this point, so just let that go. Take some vacation days and enjoy the fall weather.
They make sure to whack a few young folks along with older employees to avoid discrimination charges. If GE is good at one thing it is laying off people. This is a well worn playbook. I got whacked in March and was impressed with the thorough a-- coverage the had in place
Age discrimination is wide-spread at GE. Consult an attorney. If your job is eliminated, focus on smaller companies that value your expertise. GE targets employees 50 and over for layoffs all the time but even more so now. It's illegal and immoral.
I can’t provide advice but here is what I will tell you...
Your not eligible for a SERO because your not 55. You will be eligible for a VRIP if they offer one to you. The reality is the VRIP is similar to a standard layoff and is not good if you still need to work and you will not receive unemployment.
To be honest, the system is managed by experienced HR professionals and they will make the legal case to reduce you from a peer group based on future job needs or restructure your role entirely. Either way, you will likely sign a release to get your benefit and they will reconfigure after you are gone.
**sometimes GE will offer a Voluntary Job elimination which is different than above and will be more lucrative than a VRIP.
Make sure you push and challenge the justification they give you. Most times people accept it and move on. You can push and make a case for exceptions during times like this because the business will be receiving corporate funding (loan with a payback term) for the upfront restructuring costs.
Good luck