buyout

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Deciding whether to accept your employers offer of a buyout is a difficult decision. There are tons of factors to weigh up before committing to anything. How old are you? Age is an essential factor to consider. At the risk of sounding ageist, how old you are dictates your options. For example, do you plan on […]

Deciding whether to accept your employers offer of a buyout is a difficult decision. There are tons of factors to weigh up before committing to anything.

How old are you?

Age is an essential factor to consider. At the risk of sounding ageist, how old you are dictates your options. For example, do you plan on trying to get another job? Or, if you’re taking early retirement, how you will cover healthcare costs until you can access Medicare?

To put it bluntly, someone in their forties is more likely to find a job (quicker) than someone in their 60’s- so a buyout might be a prudent choice for them. The same is true of someone around the age 64; they’re nearing the age where they’ll qualify for Medicare, so they don’t have to worry about expensive medical bills for too long.  Typically, it’s people around the age of 60 that struggle to make a decision.

Your financial situation

You need to consider your budget, carefully. How much of a hit will your finances take (in the long term) if you choose to stop working, i.e., can you really afford to retire?

If you’re not 100% sure how to tackle this daunting task, ask someone with experience in finance and get their opinion on the matter, usually, a financial advisor is your best port of call for assessing your financial preparedness.

Read the buyout contract carefully

Before signing anything, analyze the deal. Is there a noncompetition clause impeding your ability to get another job? Or, set up your own business?

If you have access to a lawyer, ask them to read through the contract. There’s a good job they’ll raise concerns you’d never have thought of. Then once you’ve spoken about the buyout with both a financial advisor and a lawyer, you should have a better idea of whether the deal’s a viable option for you.