Reply to: Sister is at the Crossroads - redundancy

[Dallas]

My parents retired about 4 years ago and spent the first 2 years feeling guilty and recluse going to several supermarkets everyday as produce was being reduced was the only other social interaction they had. I saw them age physically and mentally at least 10 years during that time.

More recently they have been listening to me and joined various groups: tai chi, table tennis, hiking, bowls, bridge, swimming lessons. They now have a better social life than me, go on group holidays, dinner parties etc.

Financially, both on final salary pensions, sold the house and pay themselves from their investments.

I remember when I was little my Nan joined 'Cruise' (I think) dancing and holidays for singletons - looking back they were probably all 'at it' too go Nan!

I think just turning the TV on during the day is your catalyst for a downward spiral - write a bucket list and go.

[vetran]

Considering Nigella is also 52, would MTT?

she is, cor I always wanted to be a toyboy - Nigella , Mitch you get slopply 2002nds.


I think the thing is to transition, if she just stops it will be a crisis, if she reduces and and maintains her lifestyle it might well be quite good.
Can she get a consulting gig based on her experience? 2 days a week or 6 months of the year contracting, the rest wood carving / making jam/ running a bird refuge?

Agree £70k would be swallowed by an IFA, its enough to stack her ISA's and some decent small safe investments.

Both My Father & Father in law retired and are now better off mentally & monetarily than when they worked, plenty of work out there for those willing to graft with 20 years expertise.

[lukemg]

What IF said, not as simple as it sounds especially for people who have been in one place forever, they invest a lot in the job, see themselves in relation to the occupation etc. It provides a framework for their lives and they can be lost without it if they dont have other activities that they would love to spend more time on.
I struggle myself between contracts for just this reason.
Moneywise - that 70k needs to be earning its keep and I am cringing to think about the IFA's rubbing their hands when you call them up.
I would be looking at share ISA's (probably low, low cost tracker, regular payment NOT lump sum), combined with 3yr + 5yr retail bonds for simple fixed interest with no risk.
Without any previous knowledge/skills/experience I would not consider buying a 'little business' to run, they can be a lot of grief and a good way to burn through 70k with jack to show for it.
Standard reaction to huge life change is fear, better than even chance she will find a niche, part-time work, other activities and tell you it was the best thing that could have happened to her in 6 mths from now.

[Ignis Fatuus]

My sister is 52 and she has been offered redundancy by the big bank she works for. £70k pay off and and 11k pension she can take in three years time

but she is terrified. She's been working so long that the thought of not having a steady job frightens her a lot.

She is right to worry. My partner did similarly, and bitterly regrets it. She is now desperately lonely, bored, and aimless (having a partner who is always away doesn't help). The money can be easily planned, it is the life or lack of it that it the real risk.

[EternalOptimist]

But the spreadsheet scenarios you are going down are the nub of it.

It's really interesting to see the way the bottom line cycles as lump sums, pensions and taxes change.
It's not just a simple straight line


i was semi shocked to see she gives £1300 to the church each year as a tithe. I know she is very devout, but that is a large slice for someone on a low ish income

thats more than i spend on fozzies. in a month

anyways. thats some good advice and support. thanks folks

[suityou01]

Considering Nigella is also 52, would MTT?

Seriously!?

This is pot-noodle-necrophilia. I need to think about how I feel about this.



Betrayed, for a start.


Is she a gilf?


Oh my Lordy. Dark day for me.

[Jessica@WhiteFieldTax]

Prolly best to get her in front of a commercially minded IFA or accountant, one who can look at things from a more than just a numbers perspective.

But the spreadsheet scenarios you are going down are the nub of it.

[suityou01]

My sister is 52 and she has been offered redundancy by the big bank she works for. £70k pay off and and 11k pension she can take in three years time

but she is terrified. She's been working so long that the thought of not having a steady job frightens her a lot.

I knocked up a little spreadsheet for her, projecting out to 2030 where she will be under 5 different scenarios and she is mulling it over

anyone else here have any experience in this type of area ?

Mate, tell her I sympathise

I finished a gig last Thursday, and even though I am used to having time off I felt I left the gig too early and finishing on a Thursday was weird. Friday I felt all at sea (albeit hungover) and guilty for not working, bizarrely.

It soon lifts and today I was swinging power tools and on the DIY like a thing possessed. Feel happy enough.

The thing is she is too young to be on the scrap heap, term used loosely but is how she is feeling if truth be told. My father in law retired at the same age and I had very similar concerns over him. He was also worried about what it would mean.

I bought him a laptop (second hand), whacked linux on it and bought him a book. By the time he had finished messing about with it he was already 6 months into retirement and it eased him in gently.

Now he waxes lyrical about how busy he is, largely with the upkeep of his house, but also took up lawn bowls with the mother in law and has a very active social life, and grand kids.

The point is, as long as you stay socially active, and keep on moving, achieving there is nothing to fear.

Becoming reclusive is a slippery slope. I feel with a brother like you she has nothing to worry about.

Suity

[DodgyAgent]

Can she or will she sell?

If you are willing to pick up the phone and hustle for business you will always have work.

[vetran]

Sounds like a great opportunity. Use the redundancy money to buy an existing business, something with positive cashflow. Use your nous to grow the business.

Retire rich.

You guys think so small. Get another job. pah! She's probably got another 20 years of enjoyable work left in her if she wants.

New challenges or adventures is what she needs, some kind of purpose otherwise depression or some such might set in. She should be grateful.

if she is nervous she may not enjoy the challenge of running a business but getting a part time job elsewhere may make her relax and she can grow from there.

[MarillionFan]

What does Benny think?

[doomage]

Sounds like a great opportunity. Use the redundancy money to buy an existing business, something with positive cashflow. Use your nous to grow the business.

Retire rich.

You guys think so small. Get another job. pah! She's probably got another 20 years of enjoyable work left in her if she wants.

New challenges or adventures is what she needs, some kind of purpose otherwise depression or some such might set in. She should be grateful.

[SimonMac]

the house is paid for and she is single. I think you are right about another job though.

maybe a pt job working in a shop

Considering Nigella is also 52, would MTT?

[BlasterBates]

According to Wikipedia, the population of China is 1,341,403,687, of which a BBC article today claims 600,000,000 are middle class.

So the current recession will be over when the remaining 741,403,687 Chinese become middle class, and the entire population of India and Africa etc who aren't already middle class become so too.

Absolutely and they'll all want cars, washing machines etc, I know where my money's going.

[OwlHoot]

The money needs to be invested in something sound. There is only one way the UK economy is going and that is down and even further down for the next ten years. By the time she is 65, the Uk maybe on the way out of ressesion

According to Wikipedia, the population of China is 1,341,403,687, of which a BBC article today claims 600,000,000 are middle class.

So the current recession will be over when the remaining 741,403,687 Chinese become middle class, and the entire population of India and Africa etc who aren't already middle class become so too.