Employment Buyouts

When it comes to employment buyouts, we like to organize our advice into 5 Do’s and Don’ts.
← Back to Services

Employment Buyouts

It’s somewhat common for a company to offer employment buyouts when it is aiming to decrease payroll or simply downsize overall.

When it comes to employment buyouts, we like to organize our advice into five do’s and five don’ts we believe people should consider before making a decision. These 10 do’s and don’ts are designed to help you decide what to do with an employment buyout:

Do:
  • Do understand that while a buyout seems like a lot of money, it isn’t necessarily sustainable unless managed properly.
  • Do consider an immediate annuity payable at your normal retirement age.
  • Do realize that a lump sum is beneficial but can be difficult to manage on your own.
  • Do appreciate the idea of leaving your job on your own terms.
  • Do accept that you may receive less in Social Security benefits if you retire early.
Don't:
  • Don’t forget that the IRS will take 35% of any large lump sum withdrawal (Even if for business purposes).
  • Don’t rob your future income to pay down a home or college for kids.
  • Don’t buy a small business unless you have worked in that industry for several years.
  • Don’t be overly generous at the expense of your future.
  • Don’t leave any vacation/paid leave days on the table.

The process of being offered an employment buyout can be somewhat confusing. Utilizing the help of a financial professional can go a very long way toward achieving your goals.

We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

*Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

Strategies for Financial Independence

To schedule a time to discuss your financial future and the possible role of insurance in your financial strategy, contact us at apcinfo@apcadvisor.com or call us at 248-649-4759 today!

Have Questions?

It can be difficult to make financial decisions without access to information. If you have questions or concerns about your current retirement strategy, feel free to contact us using the form below.

At Asset Preservation Capital, LTD, we can offer you the following products and services:

(Click the images below to learn more about each service)

Annuities

Long-Term Care Strategies

Asset Protection

Life Insurance

Retirement Income Strategies

Employment Buyouts

We can also refer you to professionals who provide the following services:

» Trusts » Probate » Charitable Giving » Estate Planning » Tax Planning

Get access to our helpful retirement kit, which includes three guides that address topics you should consider when planning your retirement.

Privacy Policy | Terms of Use

We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

*Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.