FACING CORPORATE RESTRUCTURING: the TERMINATOR
Q: WHAT DO YOU MEAN BY “MEET WITH THE TERMINATOR”?
“Terminator” is from the movie by the same name; but we’re talking about the increasingly common occurrence where companies engage in restructurings and some long-tenured employees receive termination notices earlier than they might have expected. If you are one of these individuals, you suddenly face a number of important financial decisions that may be compressed into a short time period. Perhaps a severance package sweetens the deal, but not always. Regardless, it can feel somewhat overwhelming to confront these important decisions that may have lifelong implications.
Q: CAN YOU GIVE SOME EXAMPLES OF THESE IMPORTANT FINANCIAL DECISIONS?
Sure. Some relate directly to your separation from the company where you’ve been working. Health benefits and their continuation are critical to almost every family. If you have investments in a 401(k) plan, there will be decisions related to that account. If you have a pension benefit, there may be certain elections related to the timing and form of your benefit. These decisions are typically overarching and create interplay with other personal financial planning objectives.