Advice Needed: Well, my firm i work for just got bought out.

[sepiid]

Well, my firm i work for just got bought out. i haven't got a clue as to whether or not i will have a job in the next couple of months.
the office i am in will be closed before the end of august.
all of the consultants for our firm are guaranteed positions, i am not a consultant.

i am a network admin\support guy. i learned they will not be keeping any of our infrastructure or any of our hardware. so that likely means they wont be keeping any of our IT staff.

we will be either getting offer letters or severance package offers in the next 2-3 weeks. severance would be 6mos pay, half a years bonus, 1 week pay for every year of service, 6 months outplacement service. i don't know if that will be total before or after tax. i assume before tax. so the next question is it hit as bonus pay or regular pay? 30% or 50% tax hit?

if they don't offer a position, i could use that money for me and the family to finally move out of CA and start fresh. Houston TX i see has a lot of IT jobs. and the cost of living out there is substantially less. plus there is no state income tax.

but if they offer a job, how long will they keep me on, will they keep me on long enough to avoid the severance and let me go? that would leave me with no "lumpsum" to move etc...

do i take the cash and pay of the car or school loans?
do i just put it in the bank and take the next job i get?
to i take the cash and move to a cheaper place, then get on the dole for 2 years?

i need some advice.

i have a wife and almost 2 year old son. wife is stay at home mom, and willing to go anywhere.
i closed on a BK almost 1 year ago, so i only have a car note, school loans, cell bill, and car insurance.

this is the first time i have ever been in this situation. i dont know what to do. i dont know who to talk to. my wife says we will do what we need to.

i know if i do take severance i will have to move as we cant afford to live in our apartment for any length of time with what they will give us. so we would need to move. but the question is where. do we just up and find a place out of state or instate i dont know. ideas? anyone? thoughts? advice? sage wisdom?
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[Logan]

Keep the cash until you find another job. Good luck!

[shark66]

I can tell you from personal experience that you'll be taxed at 50% or thereabouts.

Don't pay anyone or anything. Put the money in the mattress and lay low until you're employed again. Being in the same field, I can only wish you luck because the times are beyond tough.

If you can find a decent job somewhere else, go for it. At least you won't have the hassle of selling the house, since you're renting...

My $0.02 only...

May the good luck come your way.

[sepiid]

i have already filed and closed my BK about 1 year ago. so dont have to worry about paying anyone anything. i can still walk from my car we are doing a ride through on. so that is an option if needed.

yeah, as of now it is still a guessing game. i havnt been giving walking papers, and i havnt been given an offer. so it is status quo/limbo.

i figured it would be taxed near the 50% side.

is it true that unemployment is back to 26 weeks now, instead of the 99 you keep hearing about?

[AngelinaCatHub]

Sepiid: As one who is also in the same field (level two support to field engineers) I faced the same situation. I was so pizzed after 35 years I get the middle finger salute instead of the gold watch. We had by law, 60 days to linger. Needless to say, all work stopped, all around me were attempting to get apps into places on the company time. I just watched them all in awe. I never attempted to make an application as I was just darn well angry. I did tell all field engineers what happened and that some 19 year old would take my job with a cook book reference.

Well, in that we only had to work 30 of the 60 but paid for both, I felt like you. Let down. I felt hopeless but I'll be da**d if I was going to beg. Last day don't you know, they came to me with an offer of a promotion, and pay raise. The package I got was a full year of pay, two year of medical.

NOW the shoe was on the other foot. I HAD A CHOICE. A moment of power to accept or deny. I asked how long did I have to give an answer. By morning I was told.

My wife and I went out to our favorite pub. I asked her, what to do. She said what I am going to tell you. ONLY YOU can make those decisions. MY decision was to act upon the choice I was gifted. I chose to take the money and run. I in a most professional way, thanked them for the opportunity and that I could not, would not work for this company in that it was purchased by AT&T and that it no longer was the "family company" I once knew.

This was the best choice in my life, I had that power given back to me of choice. I found out I could do other things in my life. I went to teaching computer apps in colleges, as well as consulting on my own. My life improved. I was free and no longer chattel of a company.

You will have to make these decisions on your own. If it were me, and I lived in CA, I'd take the opportunity to get out. Find a state like TX or FL or AK that has no state income as well as tax on every thing you can think of.

This too is my 0.02 cents. 'Hub

[sepiid]

ACH! thank you for the great response, that helps put some clarity back in my situation.

[IamOld]

sepiid - if a BONUS is paid, that's taxed (fed tax only) at 28% by law/Irs reg. If your severance is paid over time, then it's taxed at the normal rate.

May I suggest - although it is a FAR more expensive area than Houston, the Wash DC area has lots of (sorry) "techie" jobs...

[BROKEDED]

You may also want to try a professional headhunters service in an area(s) you are interested in. Had a friend use this and was quite happy. Although it was in 2006 before the collapse, the housing market in his area had already started crumbling. He went from roughly $75k as a programmer to $120k as a contract employee, quit that job, used the same service and moved across the country making about $10k less and then eventually accepted a job elsewhere with benefits for slightly less than that and has been there ever since.

That could give you time to get your thoughts straight, and get some perspective as to where you want to end up.

[sepiid]

UPDATE!:
the acquiring company has offered me a position and relocation.
ill be moving to Houston TX!!!!!!

[IamOld]

Great news!! and best wishes!

[BROKEDED]

Congrats! I hope everything turns out well for you.

[sunshinepa]

Great news. I spend time a bit north of Dallas a few times a year and honestly, I love it down there. The people are so friendly, the kids have manners and it's just way more laid back.

Here's wishing you well on the new job and the relocation!!!!

[sepiid]

Looks mid September is it! going with the wife and kid this weekend to find a place in Houston!

10k relocation after taxes paid in a lump sum.

[IamOld]

Congratulations!!!!!!!!!

[sepiid]

all went well, got a new place in TX and get to work from home!!!