Contributed by: Michael Brocavich, CFP®, MBA
Toyota North America recently offered some employees a voluntary severance package. Employees received offers dated December 11th, 2023, and must apply for the offer and have received an acceptance or rejection by January 25th. Not all employees will be able to qualify, and the offer is very limited compared to other recent offers from the Detroit Big Three.
Employees who are approved for the severance offer will receive payments based on salary and years of service. Employees with 15 years or greater of service could receive up to two times their salary. Employees with years of service between 10 and 14 years could receive up to a year and a half of salary, while employees with five years of service to nine years could get up to one full year of salary.
Over the past several years, the ‘Big Three’ have all offered similar buyouts, and many of our clients have come to us for guidance to ensure they make an informed decision. Above is a webinar recently hosted by partner and Senior Financial Planner Nick Defenthaler, CFP®, RICP®. During this educational session, Nick discusses five important considerations when going through a layoff or a recent job transition:
Timestamps:
Cash Flow Planning - 6:01
Health Care & Insurance Guidance - 11:49
Tax Considerations - 18:19
Retirement Account & Pension Decisions - 23:41
Putting It All Together - 35:21
If you, friends, family members, or colleagues have recently received a buy-out offer from Toyota North America and would like to discuss the details with one of our team’s Certified Financial Planners, please feel free to reach out, and we’d be happy to arrange a time to chat. Our team has nearly four decades of experience helping clients navigate significant life transitions such as this – we’d be honored to serve as a resource for you.
Office Line: 248-948-7900
Website Contact Inquiry: https://www.centerfinplan.com/contact
If you’d like to receive a copy of our “Should I roll over my 401k to an IRA?” checklist, please click HERE!
CENTER FOR FINANCIAL PLANNING, INC is not affiliated with Toyota North America.
Michael Brocavich, CFP®, MBA is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He has an extensive background in both personal and corporate finance.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.