Agree that investments need to be more conservative as you approach and enter retirement.
But keeping significant money in cash seems like a bad strategy when even AT retirement you're still looking for your funds to hopefully grow and last 20-30 more years if you need them to. Which is still a long term timeframe
You still need long term growth. You just need safer flavors of it. To me that screams 'less aggressive target funds', not 'piles of cash'. YMMV.
Near retirement, a 401k should already be balanced in a way to make it more conservative and less susceptible to market tanking. In individual's retirement portfolio should have about 4 years of expenses in cash/CDs/money market funds so that said individual can simply ignore the immediate impact of any market changes.
Lesson- when you are about 2-3 years out from retirement, drop the level of your 401k contributions so that you contribute only enough to get any employer match. Focus all other contributions on cash investments. That strategy buys you the ability to take a "yeah, whatever" attitude about the market when YOU are ready to retire.
Jah jah take the buyout! All the Zoomers want raises and promotions..
Anyone who turns down the buyout is d-mb. True to form some people will. FAFO yall.
The buyout could still be your best alternative. Might be the last chance before a new owner brings down the hatchet with far less generosity.
If your 401K is tanking in this environment and in the next 4 years, it is not a good idea to take the buyout.
Leaving politics out of it, shrinking buyouts do not indicate improving finances.
Also, SAS would not hire "outside help" to do a buyout, because SAS already knows how. The impact of the "outside help" is yet to come.
… like America’s favorite wine mom isn’t capable of fooking the economy 🤦♀️
Not everyone who is eligible will receive the package. It will be based on seniority.
Did JMP, Ideas, etc get the offer too, or just main SAS?
I have the retirement package. It consists of access to the gym and cafes, employee discounts, plus $100 per year of service. The $100 is not a typo 😞.
My friends who got severance maxed out at 52 weeks of pay, depending on years of service. That's almost as good as the first two buyouts, and better than this one.
Policies can change. When I left several years ago, both retirement and severance policies were documented online, visible to SAS employees.
"Doesn’t sas have an “actual” retirement package with payout for years of service? Maybe I imagined that…"
It's $100 per year of service. And a retiree badge that allows retirees to use the gym and cafes.
Bring on VRBP for 55!
"Doesn’t sas have an “actual” retirement package with payout for years of service? Maybe I imagined that…"
They have a severance policy package, but I'm 95% certain it doesn't apply to 'voluntary separations'. If I were to get laid off today I'd get 32 weeks under the policy.....versus 6 months (plus a non-trivial healthcare bump) under the new offer.
But I don't think I can choose that 32.....I have to gamble that eventually they'll 'get' me. (And that the policy won't change before they do)
This offer would've sorely tempted me if Harris had won in November. But as it is I'm expecting significant 401k degradation and will opt to keep pumping money in for a couple more years or as long as I can. Don't want to retire into the coming deep recession if I can help it.
So what are the "fogeys" going to do? So many of you have commented on other threada that you're only sticking around for anVRBP offer. Well, here's your chance!
Doesn’t sas have an “actual” retirement package with payout for years of service? Maybe I imagined that…
It is not as good an offer as in the past like in 2021.
I heard it is 6 months salary with no adjustments for length of service. $500 per month until age 65 for health care/insurance.
If they want you gone, they will not give you a bonus. Self culling is the cheapest way to cull. Sad reality.
“Maybe the rude “prove it!” guy?”
I prefer to be called the rude “don’t blindly believe anonymous internet posts guy”.
I know how foolish that is. You guys have berated me over and over about my skepticism towards anonymous internet posts.
I’m going to be more like Mulder. I want to believe!!
@hd+1jpe4sbdt Can u share the details of the offer?
Well, are you going to take it @hd+1jpe4sbdt?
The email came, but not as good of an offer IMHO as regular severance...
“Three of us heard the same rumor”
Or one person having a conversation with themselves. Maybe the rude “prove it!” guy? we’ll see what happens as the week goes on.
@h8+1jpe4sbdt "That would be a mean joke."
I agree, which is why I am very suspicious about the truthfulness.
We are not the same person. That would be a mean joke.
There is also @d6+1jpe4sbdt. Three of us heard the same rumor, with the same details, so I expect it's true.
Does anyone else wonder whether @c5+1jpe4sbdt and @ch+1jpe4sbdt are the same person, and that the rest of us are the butt of a joke?
Nothing yet, wonder if VRBP rumor is BS.
I’m a fogey, and I thought that was amusing 😊.
Yea how many fogeys will this affect? How many will pass and hold on for the golden age after SAS goes public and we all get rich?
Somebody write something to rip through employee database and see how many people are eligible
I hope a lot of people take it
"Told that retirement would be effective April 30 and you must be 60, with at least 10 years tenure, by April 30th to be eligible. No other details given."
Hopefully obvious, but of course I meant must be "60 or older" by April 30th.
Candidates will get email and details directly from HR. Managers simply given a heads-up that they have one or more direct reports who are eligible.
Makes more sense to advise management to report retirement details to those candidates, or give heads-up that retirement is to be offered to them with no influence either way.
Not true, based on what I’ve been told and seen, regarding decision up to your manager. Managers told that they can neither encourage or discourage their eligible reports to apply.
I have heard the same from 2 credible sources in management. Over 60. I heard that emails had been sent to management last week listing those folks reporting to them who are eligible for the retirement plan. One caveat that alarms me is that the decision is up to your manager. Just reporting what I heard.
"I would love for that to be true, but not sure I believe. Can you provide any details?"
As an old guy who has been hoping for this since just missing the 2021 cutoff, I know the impact of baseless rumors on my psyche. Would not have posted without an extremely credible report that the email will go out tomorrow.
Told that retirement would be effective April 30 and you must be 60, with at least 10 years tenure, by April 30th to be eligible. No other details given.
@ch+1jpe4sbdt Thank you for the additional information. I wish it could be more detailed but certainly respect your desire to not be identified.
Everybody else. See that wasn’t difficult. Asking questions isn’t a negative even when it challenges your world view.
@cd+1jpe4sbdt Triggered much?
The only thing that s-cks more than 58 is if one is 59 right now and layoff or VRBP is only available for 60+!!!