Discussion in 'XPO Logistics' started by ole man, Mar 15, 2017.
Or black out the info, and pm it to me. I'll post it.
In real General terms, I had 20 years service, credited with 13 years because of the pension stopped in 2006 . Lump sum payment would be a little less than 60k.
I am eligible to start receiving full pension payments in 8 years, since I have 20 years credited service. With the tax consequences and the reduction I would have to take, it's not feasible for me to even consider any lump sum payment. This may not be the case for everyone if they are older than me. I have not reached the age of 55 yet but getting close to it. I could draw around 650.00 per month at age 62. That amounts to close a to 8000.00 a year. Like I said in a earlier post, at this point, they are not offering the buyout option to anyone who is still employed by any XPO Company.
I received my offer Sept 9th. I looked it over quickly and it said my pension would be a little under $270 / month or I can take about $20k if I act fast. The decision must be made by Oct 25 . It doesn't seem to be a good deal, however I still need to read it over carefully.
Just one more way Xpo is cheaping out by offering these buyouts to free themselves of future financial obligations. You have to research the offer to find out what is best for your situation and what effect it will have on your retirement plans. From what I have read your almost always better staying in then taking the buyout
The rush for you to make the decision speaks for itself.
How long till they offer current employees.
No future here.
If you have low expectations from your employer you have a home with Xpo.. race to the bottom.
As long as Jacobs owns us we will be chasing that stock price and everything will be subject to a cut.
Remember Wall st. loves what's not good for the worker and response to these type of moves. The only people that gain in this environment are the shareholders and the top brass who hold shares as the majority of their income.
Keep you eye on the ball.
It is not a good deal!! I run the numbers on my offer , and unless I am terminally ill , would only be the advantage in taking the lump sum. Even if I elected to start receiving payments at a reduced rate now and received them for a extra 8 years , I would still loose 30 k or more based on a 20 years worth of payments verses 28 years.
They are betting that people will jump on the cash to pay down debt, medical bills and so on. This will be Very attractive to a bunch of people when looking at the lump sum.
Age plays a big factor into this. 20 plus years till retirement, compound interest makes a big difference.
Possibly if you invest it right and the market works to your favor. You have to know when to move your money from risk to safe and time it right. Some will do good at this most are not money mangers and would do better leaving as is.
I can tell you a story of a close freind who retired in a 55 plus community in Florida. He worked for a Major trucking company and collected a handsome pension monthly. In the economic downturn of 2008 he started noticing a lot of for sale signs in his neighborhood. His fellow retired neighbors were forced to sell their home because the vast majority of them had their nest eggs in 401k's depleted due to the downturn . These people turned to my freind and ask how can you still afford to to stay .. simple he replied I have a stable monthly income from my pension. They were amazed how can this be ,Pension are a thing of the past! He still lives there today still collecting his pension . While the others were forced to move on .
It's a simple but true story and an example of what can happen if you don't have your money invested wisely vs. a pension.
This one guy in particular sounded really hot about it. Took him almost 9 years to be considered full time he said. Said there were other things too. These people sounded fired up to say the least.
An interesting audience. I wonder how much they can possibly save and why the limited selection of participants.
If you directly invest the $60K is it still penalized ? I would rather add it into a retirement account and get that growing than have to wait 10 years to start drawing a fixed amount. $650 isn't worth what it was ten years ago. And in ten more years even less. Not pushing you one way or the other. Just curious.
That's another thing. trucknfool has a reasonable amount of money coming his way. $650 can cover a few bills. You start talking smaller amounts. And longer periods of time until retirement. And it might start making more or less sense to look into something like this.
Unless you could invest that money and make up the difference ?
This. Very much this. Gotta look at the entire picture.
The people with those pensions are fortunate. No one working here has that good of luck.
So true. I hate to see people forced to make big decisions in little time. Hopefully those faced with it do their homework.
Looking at the numbers. If I take the monthly payment now, it is 25% of the payment at retirement. Lump sum is equivalent to about 4.5 years of payments at retirement. I have 20+ years till retirement. Even if this grows at 4%, i still would come out way ahead puttig the lump sum into my 401k.
It gives me reason to live as long as I possibly can so they have to pay me until the day I die!!! Lol. I have a 401 k with a 6 %match at my current employer. If the market goes South , hopefully this will be some form of diversification. You can roll it over and not get penalized but I feel that is putting all my eggs in one basket.
Yes stable diversification is a good plan.