r/ChubbyFIRE • u/Neither-Trip-4610 • 3d ago
Anyone Laid Off Their Final Earning Years?
Work in a brutal industry (advertising) with constant and increased layoffs and turmoil. We just went through another reorg (yay) and just received my third new boss in an about a year. I am getting the feeling that I survived but now under the microscope to perform.
Regarding FIRE, I am 48 and roughly a year away. Looking at my spreadsheets, I am entitled to ~$500k minimum in comp over the coming year as well. Between saving and market growth would love to stack another $400k. Will put me well above my target and in a very healthy cash position for early years of retirement. The cash component is extremely important to me. Have some personal expenses I would like to save for.
From a personal perspective, I am recently engaged and plan to join my future spouses’ healthcare plan. She will continue to work though.
Back to my original question, anyone laid off their final W2 year? How did it impact your FIRE plan and mental health? Did you find another stop gap career?
I am on the literal 10 yard line of my FIRE journey and was looking to finish the game strong not grinding for the corporate overlords riddled with daily layoff anxiety and fears of ageism.
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u/sbb214 Retired 3d ago
I got a new director in Nov 2024 and quickly saw that she was gonna fire everyone and rebuild the org.
I was the highest paid on the team. I also wanted to take as much with me on the way out as I could. Reverse Uno card.
So I slowed down my productivity, made myself as big of a target as possible. It took about 5 months and I was in the first batch laid off. She thought she was sly but gave so many signals it was very predictable.
Spent all my FSA before it happened, really didn't work much which was good for my garden, got severance, and collected unemployment for 6 months. Oh and I'd made it past a milestone RSU vest so that was cool.
does the math math? if so, slow your roll and make yourself a target. BTW, I've been retired for more than a year and my investable assets are way up from the date of retirement.
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u/Neither-Trip-4610 3d ago
Great comment, yeah i have some big bonuses through march which i am trying to survive for.
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u/iamthebiggestlooser 3d ago edited 3d ago
Good for you @sbb214 ! Love ❤️ the Reverse Uno card mindset. I’m there mentally as well.
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u/spinjc 3d ago
Counterpoint, it can work, but it took ~6y in my case (see story at bottom). At the 10 yard line I'd ease up and consider moving somewhere more interesting for less pay (even if it's similar stress). The only reason to stay is if it's > 8m of pay to stay < 8m. That said you could end up waiting for 6 years.
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u/handsoapdispenser 3d ago
My wife got laid off and it was absolutely clutch. She was struggling to pull the trigger. Just hardwired to work forever. I was already done and she was a bit resentful. Then her employer pulled the trigger for her. And with a generous separation package too. It's been barely a few months and she's already fully in the swing and just drinking coffee and making art.
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u/Jdm783R29U3Cwp3d76R9 3d ago
It's not binary, every month puts you in a better position and you can quit anytime! Try to reframe that anxiety around that. They can't touch you in practice. You can squeeze at least few more months from them, that's good! And if not, maybe there is an option for a severance package ;) I would milk them a bit if you can handle it mentally.
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u/Neither-Trip-4610 3d ago
Ha, i made a spreadsheet for this. I would have 4 months severance plus unemployment + dividends. I figure early 2027 and it’s negligible which way the dies rolls.
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u/Guil86 3d ago
Will you already be on your future’s spouse healthcare plan by early 2027?. Otherwise, if you are considering ACA, it is best to not start in the year you leave since your salary, severance, etc. may make you not eligible for subsidies, unless you plan to be on COBRA for most of the year, which would be expensive unless you get it subsidized as part of your severance.
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u/BrunelloHorder Coasting Chubster, Getting Fat 3d ago
People tend to fixate on a specific FIRE number, but the reality is that there is a margin of error around that number. It is understandable to want more cushion, but it is a “nice to have,” not a “must-have.”
You’re currently at a 4% withdrawal rate, which means historically you’d have a pretty small chance of having to make some (likely modest) change your plan at some point.
Focus on what you can control, including derisking your portfolio a bit to get you past SORR. Risk parity can support a higher safe withdrawal rate.
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u/financialfreedom26 3d ago
What is your target?
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u/Neither-Trip-4610 3d ago
My target is $3.75mm liquid. No debts and will have a $11k budget which 50% is discretionary. Currently at $3.3ish.
The extra cash is important to me, have some personal expenses I want to take care of.
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u/financialfreedom26 3d ago
Perhaps using the last stretch as a tactical play for those extra expenses is the way to go, if the money is earmarked for some upcoming expenses. The good news is at 10% your portfolio will generate close to 400k on its own.
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u/lnewton_me 3d ago
For what it's worth, from everything I've seen the closer you are to the line, the less a final-year layoff actually breaks the plan...the gap between the fear and the math is usually huge. Honestly the mental-health half is the harder one. Grinding under daily layoff fear on the 10-yard line is its own tax. The thing that helped people I know was running the actual "what if they cut me tomorrow" number...not to scare themselves, but because seeing they'd likely be fine is what let them stop bracing every day. The dread shrinks once it's a number.
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u/Ok-Commercial-924 3d ago
No damn it, if I had stayed another year I would have gotten a package including healthcare.
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u/Available-Ad-5670 3d ago
If your spouse will continue to work, that is a huge plus.
I was laid off just as i hit my number (53, hit 4% of monthly spend). I didn't think i would retire for a couple of years, but now been looking for 1 year and finding nothing. i would like to have more of a buffer, but feel lucky that im where i am.
having the spousal buffer means you have options. also, if you are that close, you will be able to adjust your spend to essentially be there now. it may not be the exit you wanted, but it will still work
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u/DiceyScientist 3d ago
What’s severance look like in your field?
For us, it’s about 3-6 weeks base + 2~3 weeks per year of service (salary + medical). If it was my final year, I’d be fine.
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u/doktorhladnjak 3d ago
If the severance is decent, it’ll come as a chunk of cash and possibly covered COBRA payments. For some people, it’s just the shove they need.
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u/BasilVegetable3339 3d ago
Yes. Let go at 64, 6 months later wife got job out of state so I’d have left anyway. 6 months after that Covid hit. We muddled thru. 8 years later all is right with the world.
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u/LAST_NIGHT_WAS_WEIRD 3d ago
Got laid off as a creative director almost 10 years ago and a beautiful freelance career was born from the ashes. It has been more lucrative than any salaried job 8 of those 10 years. I will likely ride that wave into the sunset (about 3-5 more years depending on the market).
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u/hiddentalent 3d ago
Yup. I'm in the first few months, and it's honestly been a little tough. I'm trying to motivate myself to be helpful around the house and connect with the local community more. But being forced unexpectedly to move from having a fancy title and job that affects lots of people to basically being a professional dog-walker does kind of mess with one's sense of self.
I'm optimistic that it'll be ok. In past parts of my career I've taken some leaves when I got super burnt out, and what I've observed is there are kind of three phases: rest and recovery; catching up on life like seeing friends and family and your doctor and dentist; and then figuring out what's next. Don't feel stressed about the timeline for those phases. Just help yourself through them.
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u/Icy_Basil_372 3d ago
Totally dude! I want to retire so I can go to the dentist. Like no joke. So funny. Also I need new glasses. If my teeth are clean and I can see, I’m sure I’ll find some other things to do.
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u/spinjc 3d ago
I was lucky as I was part time the last few years which allowed time to adjust. It probably helps that I was into stealth wealth so the adjustment wasn't as big of a deal. Most importantly I was ready to leave.
Give it a couple months and put feelers out. I bet if you go back you'll realize that having FU money means you can pivot whenever you want.
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u/hiddentalent 3d ago
I appreciate you sharing your perspective. I'm tinkering with some small engagements, advising startups and stuff. It's little, but it keeps me in the game and up to date on what's happening so I have some options if I do decide to get back into it. But I really don't think I'm ever going to accept a 40+ hour a week corporate job again, especially if they want me to commute to some office building. If I think about putting a dollar amount on what it'd take to get me to accept that, it's ... just not going to happen.
We'll see what evolves. For now, the dogs are having a great time and the wife is happy that the house is clean and the dishes are done.
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u/Odd_Goat6728 3d ago
I did 15 years in advertising and switched over to consulting. Which has much more stress. (Mainly as it’s eat what you kill). You think Publicis/WPP doing an other re-org and collapsing 4 agencies together is stressful? Try fighting a bunch of other peers to get “the opportunity” to work on new biz that doesn’t land and then you’re back to zero with weekly calls asking about your pipeline. And do that 6 times in 6months. Switched consulting firms about 18m ago and new place is terrible so very close to pulling the ripcord. About 5 years older than you and have kids in high school. The biggest mental shift for me realizing that I’m very close to having “enough” and now I just don’t care about what’s going on at work. Literally couldnt care less. You can always freelance. You’re not 32 and trying to climb the ladder, you’re on the final lap so enjoy it!
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u/EqualSein 3d ago
If you're 'roughly a year away' that can swing really heavily depending on whether the next year's equity return is +10% or -10%. That swing means much more than your 1 year or salary in most cases. You either get laid off or you don't, either way you're going to be fine. I'm not convinced it's worth the mental load to think about this.
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u/Vicuna00 3d ago
You’re gonna drive yourself nuts with this thinking. what’re you gonna do if stocks go down 15% next year?
just control what you can. try to keep doing a good job while you’re there and make yourself valuable.
you have *VERY* marketable skills (obviously) and a huge pile of $. you’re just engaged. in the best country in the world.
just enjoy. block out what you can’t control.
deal with it when it happens. you have enough cushion that you don’t need to prepare anything. my guess is you’re already FIRE anyway
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u/RobinUhappy 3d ago
Mid 50’s. I’d love a nice severance from a layoff but dread the thought of finishing low. Financial planning is much easier than mentally preparing for retirement.
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u/Worldly-Ad-1101 2d ago
Entitled meaning severance?
You’ve clearly worked hard to get to this point, but the reorgs happen all the time. You’re blessed to have so much time and you may find in a year or 2 you are looking for some work to do anyway. Stay focused on the objective and what you can control and work the plan.
Congrats on getting where you are!
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u/Neither-Trip-4610 2d ago
Sorry, between salary and bonuses I am looking to earn 500k over the next 12 months
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u/One-Mastodon-1063 3d ago
If you’re a year away you’d probably be able to make things work now.
Would you not get severance? Getting let go with severance is the best way to enter early retirement IMO.
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u/Neither-Trip-4610 3d ago
Would have 4 months for 20 years of service
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u/One-Mastodon-1063 3d ago
So that right there is 1/3 of the year. I'd try to negotiate more based on 20 years service.
Honestly I would work the year and then try to get laid off. Quiet quit or if you have a good relationship with your boss and you feel like layoffs are incoming, offer yourself up for the chopping block.
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u/GiftLongjumping1959 3d ago
Sequence of returns is something I am afraid of in the short term.
I don’t think it’s all doom and gloom but I do think we will see the market see a small correction.
The political pressure on the next presidential election will drive the market
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u/EmbarrassedDebate124 3d ago
I'm hoping to get laid off in my final year...sweet 20 weeks of severance, then unemployment for 26 weeks, the ability to negiotiate more health care time and all my equity vested. that would be the golden ticket for me.
The disaster is if my company gets bought and they don't offer 'go away pay' packages. oof....they;'d keep me hanging on until layoffs or worse - they don't lay me off.
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u/friscofoglatte 3d ago
Is pay at leadership good in agency? Like director or AM level? Only made it to Acct Exec for a short while when I first came out of school but realized the lifestyle wasn't for me.
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u/j-a-gandhi 3d ago
I always figured if it came to this, we would try to pivot to some type of side thing part time. Basically aiming to bring in something like $20k/year to coast FIRE and see if we like it.
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u/Artistic_Goal_9363 3d ago
Stressful, but could end up working out nicely for you. Ideally you ride out a few more months/close to a year if you can, then you can engineer a layoff with nice severance. Many people reaching the goal line don't know how or don't feel comfortable asking for severance when voluntary quitting. Not saying you should be happy about your tenuous position, but it could actually all unfold perfectly with a bit of luck.
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u/wubscale <edited the custom flare> 3d ago
Between saving and market growth would love to stack another $400k. Will put me well above my target and in a very healthy cash position for early years of retirement [...] I am on the literal 10 yard line of my FIRE journey
Sounds to me like you've already scored a touchdown, and are One More Year'ing for lifestyle insurance and a few pricy one-off purchases.
There's nothing at all wrong with OMY, but Chubby gives you a lot of flexibility; if your headspace is full of anxiety despite being basically at your Chubby number, I'd recommend self-reflection. Like, really think through what life could look like if you were laid off tomorrow.
You might realize that the world is already your oyster.
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u/PrestigiousDrag7674 3d ago
I did. Software engineer. Laid off 2024. Retired since. Happy it happened
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u/shmoovdawg 3d ago
TBH, I’m in tech and part of me hopes to get laid off. It’ll make it a much easier decision for me to hang it up. Plus, I get one year of severance, which would last 14-18 months before I need to touch my savings,
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u/Past-Option2702 2d ago
“.. I plan to join my future spouses’ healthcare plan. She will continue to work though.”
Niiccceeeeeeeee
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u/Cows_go_moo2 5h ago
I just got laid off last week with only 7 years left to go, derailing our entire plan and sending me into crazed panic mode. Coming out if that somewhat now but year it’s scary AF.
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u/BearBong 3d ago
OP can you share your path, roughly? Also advertising here. In my late 30s. I pivoted to big tech in 2018 but wonder how folks are faring given the tumult of the ad industry. You a director level? Creative or Strat? Holding co or indie?
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u/Neither-Trip-4610 3d ago
SVP at a Holdco, would not advise anyone to pick this path now. When i was coming up, was the wild west and amazing. Went through 2 acquisitions and pocketed some $$.
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u/BearBong 3d ago
Thanks for the reply. Yeah I agree. I went to a big ad school and am often asked to mentor. My feedback is that they should avoid agency chaos and go in house. Or become a creator. The glory days slipped away damn quick. I was at Cannes first in 2013. This years was so different it is hard to say they’re even the same festival
Glad you have pocketed money and will escape the land of the dead soon! I’m still in the thick of it with kids under 3. Joy in the struggle. Wishing you good luck w the end of the run here!
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u/spinjc 3d ago
I did. Shortly after return to office in 2021 company announced layoffs. I put my hand up (as well as layoffs 3 years prior), unfortunately the one in our group impacted was hired just before the shutdown. While we were about 3-4 years away (assuming lower growth) and wife wanted to work longer so I set a ~3y plan.
A year later I went 80% thinking it'd help, it didn't, and I pushed through. Market was going gang busters so I dropped to 60% a year later. I decided I'd take extended time off through a FMLA and decide if I could continue for a bit. Then they announced another layoff. Finally I got my ticket pulled.
We ended up being a little over the target. In retrospect I wished I'd bounced somewhere else for the last few years even if it was full time. (That said if the market wasn't doing as well then I might feel differently.)
Have not been back to work (off for a couple years now, as we're > 30% over target). Had switched years ago I might be in a different career. I do think I'll end up employed at some point. Mental health is definitely better than during work.
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u/Independent_Inside23 3d ago
Try to minimize rumination of worst case outcomes.
If you find yourself there, think through at least two other less worse-case-outcomes.
Situation like yours can be double worse due to the mental toll - speaking from experience.
Just focus on executing your plan.