By Jim Eutsler, P&G Retirement Planning Specialist
Should I accept a separation or early retirement package from P&G?
As I begin this blogging series, let me introduce myself. My name is Jim Eutsler and I am a former P&Ger. There, I said it. I am a 15-year P&G veteran who enjoyed Dividend Day, cranked out W&DPs, looked forward to the Christmas box on my doorstep, worked through Firm reviews as well as attempted to get my projects through SIMPL gates just like many of you. I’ve worked out of nearly every site in Cincinnati and actually helped with the design of the Millennium Wing at ITC. I have always enjoyed personal finance and after years of thoughtful consideration, I decided to pursue my passion by becoming a wealth advisor following a round of P&G voluntary separation packages. Ok, enough about me and on with the show…
The decision to accept a package from P&G is a very personal (and often scary) decision, and one that could lead to a sequence of events you need to be mindful of. When I decided to apply for a voluntary separation package in October of 2014 it was with mixed emotions. On one hand I felt excited about what lay ahead in career 2.0 – I was finally going to move into a field that I had personal and professional passion for, wealth advising. On the other hand, P&G was all I had ever known. For 15 years I was a loyal and productive employee. They had paid for my MBA and helped to shape me into the acronym-citing, 1-page memo writing, businessperson I am today. I knew what shade of green the P&G grass was and there is an undeniable comfort in knowing that, even as I peered over the proverbial fence at a different yard.
The first thoughts that often come to mind for many P&Gers contemplating a package are financially oriented. Both for me personally and those around me who were also debating leaving, those thoughts included:
Will I have enough money if I retire now?
If I take a new job doing something I love but possibly making less, how much longer will I have to wait to retire?
When should I collect Social Security?
How do I think about my PST and Savings Plan that I currently have with P&G?
- Should I take them with me?
- Can I leave them with P&G?
- Should I leave them with P&G?
- Are there penalties with moving them someplace else?
- How much time do I have to move them?
- I’m not yet 55 years old, will I have any access to my retirement funds?
I’m not a career coach nor a psychologist so I cannot speak to the other key questions regarding whether you are emotionally ready to leave P&G or who the retired you will be. As a wealth advisor, I can, however, help address many of the financial questions you may have around the black hole of leaving P&G.
While the answer to this blog title’s question is not Earth-shattering, taking a separation package may be the right thing for you at just the right time. That possible extra year’s salary may be just enough to allow you to no longer delay your retirement. On the other hand, even with that additional compensation you may still fall short of how you’d like to live your life in retirement. As cliché as it sounds, this decision is a case by case basis with many factors, largely financial, coming into play. Here at HCM we have several tools that can help you better understand the money side of the equation. Let us know if you want to walk though some different scenarios together. We’re happy to help. Our website has more helpful information.
The idea behind this blog series is one of both informational relevance and rapport. I say rapport because it is easy to showcase several complicated financial topics such as ‘net unrealized appreciation’ or the idea behind laying off stock option risk with the use of collars, however, I welcome commentary and questions. If a topic is relevant and you’d like further explaining, let me know. If there is another topic you’d like to learn more about and I have not discussed it, reach out to me and I can make that topic for a future session. The idea is that this is very fluid and you can take something away from it with each posting. With that, stay tuned for my next blog post which will cover ‘If I do retire from P&G, how will I best ensure I do not outlive my money?”
Content in this article is not intended to be financial advice. Instead, we think of it as educational and financial education is important to us.