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chelee
10-11-2004, 02:40 PM
Hey ladies! Good morning and God bless you.

I am losing my job of 11 years come November 24th! My whole department is being laid off. I have to make a decision as to how to take my severance, in a lump sum or as a payout to be paid on the current pay-day cycle for however long it last.

Anybody been thru this or know someone who's been thru this who can give some insight on the pros and cons of taking the lump sum vs the payout?

divaemeritus
10-12-2004, 03:27 PM
I know several people that have faced this before, and I might face it pretty soon as well. My advice is that unless you are extremely disciplined with money and spending habits, take the payout over time. It keeps you on an even financial keel to what you were before, and reduces the chances that you'll spend out more that you have.

I know that personally being laid off would be an emotional experience, and shopping has been one of the ways in the past that I've numbed negative emotion - having that much money in hand would be bad business.

Hope this helps some!

chelee
10-12-2004, 04:33 PM
Those are some good points to consider; thank you for your response.

z3000zee
10-12-2004, 11:48 PM
if it was me, i would take the lump sum. but this is me and i am disciplined with money. if you are not very disciplined, then you should take the pay-out over time.

this assumes that they will not deduct anything from you since you are taking everything at once. if they penalized (i.e. less money) for taking it all at once, then i would take the regular paychecks.

chelee
10-13-2004, 02:50 PM
Well, there is the 33% they will deduct up front :shocked . I've decided to take the payout. At first I was going to take the lump and pay up my rent for the year and a couple of other bills. But then I'll be broke. :oops: So I'll just try to come up with a strict budget and stick to it.