Thread regarding Oracle Corp. layoffs

I had about 1.5 million in savings and 401(k), zero debt and house paid off. Started SS 4 months ago, have same amount now. Wife starts SS in October. I was going to retire by now. I let my boss know last year that I would be happy to take package, ir
T jut came 8 mo early.

I am at 8 mil in AI stocks, 4 mouths to feed, another 15 years until retirement. I am worried my money will not last but layoffs does not keeps me up at night.

@h4 Fingers crossed for you. I also want to be one of the chosen.

If I'm not "lucky" then I'll just keep warming the bench and collect the paycheck.

Another no payraise focal will just increase quiet quitting.

I so want to be RIFFED. I am 62 in Nov. I only have 2M saved + SSN and Two Properties. I could live in mex for about 1K a month less medical. My US property could be rented.

$1M in SPYI ETF gives about $8K -$9K in Dividend per month. So, $1M might be good for some to retire.

Financial independence is reached when your investments are 25x your expected burn rate.

If you want to spend 100K a year, you need 2.5M. The drawdown per year is 4%.
Then you increase the spending per year by the rate of inflation.

The 2.5M must be invested and give a rate of return tracking the long term index returns. Just buy ETFs with broad exposure to the market and hold them.

In simple terms, If you see 6.5% returns, 4% is for your burn rate, and 2.5% is to cover inflation, so that the pot is bigger next year as your drawdown amount will increase. Your pot of money should last decades, perhaps it never runs out.

I'm pretty much there now. Bring on the layoff, uncle Larry! If I get laid off, I won't look for another job.

I’ve heard of the 4% rule where your yearly burn rate should be 4% of your assets.

For example, if your total expenses for the year are $50,000, then you need $1.25M in liquid assets.

As always, it depends.

What are your current financial obligations and what timescales do you need to cover before retirement kicks in or you need to get another job and what salary level would be achievable in that new job.

Maybe if your net worth and investment returns cover a minimum 12 to 18 months then you can ensure a layoff isn't an immediate catastrophe.

It’s more about the passive income you can generate that will keep coming after retirement. Make more passive income than your expenses then you’re worry free

For me, it was 3 million. Social security, plus wife's social, and her pension, make the deal. I get my May 2026 net at retirement in perpetuity, with COLA. We had 12x our gross at retirement.

Use online retirement tool, just google it for leading ones, will be cheaper than hiring a financial planner

$5 - 10M?

Obviously your age and obligations, both current and future, play a huge part in the answer to the question. Without going too much into detail, I was let go last year. Cobra is no joke, that's $3K/month (family of four), but it's not like a different insurance setup is significantly cheaper. I wouldn't look at it in terms of strictly highly liquid assets. If you had 2-3 years of cash sitting in a money market you'd have missed out on all the gains in the S&P.

One of the easiest things you can do is talk with your financial advisor about running your current situation, expenses and income, through their modeling. This will give you a fair indication of how well you are situated for your goals. If you had to retire now, could you? If not, how much income do you need to hit your number? What about spending? All of these and more are inputs into the models. Even Fidelity has a bare-ish bones model you can do on your own without any help. Start there.

How long is a piece of string?

1M NW at 55. Worried? No. It's about developing a strategy on how to earn and how to spend. Fear is the biggest ki-ler and makes you take wrong decisions.

Most don't consider this but put your full cost of health insurance under cobra into that 6 months of expenses.

Also be aware that job acquisition in this market and time for recovery is longer with this economy.

Short answer is everyone has a different tolerance for risk. There are a lot of variables involved. How close are you to retirement? Do you need to go find another job? What is your debt level? Are you married? If your spouse works that can carry you a long way assuming they agree. Do you have kids and how old are they? College and other educational expenses can be huge. Health care, replacing you current employer supplemented insurance will cost at least $1500 and possibly twice that amount per month, again personal circumstances. You really don't want to dip into your 401k unless you are at least 59 1/2 and even then it is risky unless you have millions. If you are younger than 59.5 you will pay a 10% penalty on top of the taxes you owe. It is not just your overall network worth but accessibility to those funds. Big payments like mortgages, car payments, heath insurance, and credit cards can eat through your savings fast. Stay employed if you can but it is good you are at least planning. In today's job market have 2 years worth of liquid assets to tide you over. My opinion, mileage will vary...