getting bought out at work, advice welcome!

[StreetMoggy]

Hi guys, So my company is buying people out or down in a few weeks,
Thing is, I'm going to school in the fall.
My buy out would be $15,000.00
I currently make 15.49/h and 17.54/h if I work a Sunday.

If I do take the buy down, I would then make 13.09/h with no Sunday premium.

I can take the 15,000 tax free and use it for school if I put it in an rrsp, OR I can keep my current contract and rate of pay until the next contract is negotiated, in 2 years
I work during school to keep my self a float, with the amount of hours I'm working during the school year (about 16 hours/week) it's about $200


Bah I don't know what to do please help!! lol

 

[JimO]

It seems to me that if you accept the new terms, you will have to work 16 hours per week to earn about $10,900 a year before taxes. So, if you consider taxes, you would probably make the same amount of money in two years as you would get from the buy out, maybe less, depending on the tax rate you're paying.

So, if you take the buy out, you could get another part time job to cover expenses that you could not use the tax-free buy out money for and probably work less and have more time for school assignments.

Hi guys, So my company is buying people out or down in a few weeks,
Thing is, I'm going to school in the fall.
My buy out would be $15,000.00
I currently make 15.49/h and 17.54/h if I work a Sunday.

If I do take the buy down, I would then make 13.09/h with no Sunday premium.

I can take the 15,000 tax free and use it for school if I put it in an rrsp, OR I can keep my current contract and rate of pay until the next contract is negotiated, in 2 years
I work during school to keep my self a float, with the amount of hours I'm working during the school year (about 16 hours/week) it's about $200


Bah I don't know what to do please help!! lol

 

[Rush2112]

It seems to me that if you accept the new terms, you will have to work 16 hours per week to earn about $10,900 a year before taxes. So, if you consider taxes, you would probably make the same amount of money in two years as you would get from the buy out, maybe less, depending on the tax rate you're paying.

So, if you take the buy out, you could get another part time job to cover expenses that you could not use the tax-free buy out money for and probably work less and have more time for school assignments.

I agree with Jim. It also depends on how long you plan to stay there and what other job opportunities are out there for you

 

[DavidBuchan]

So, if you take the buy out, you could get another part time job to cover expenses that you could not use the tax-free buy out money for and probably work less and have more time for school assignments.

Or perhaps breed a sought-after insect and sell them on ebay........
If it was me I'd take the money and invest it in education. Good plan. Now where did I leave that lottery ticket......

 

[StreetMoggy]

Thanks for your thoughts everyone, I think I am going to take the buy down, I just needed some approval lol.
I only have a couple years of school left, and I'll be able to move on. Big changes are always hard I guess.

 

[JimO]

Good luck to you.

 

[laurie]

So from a math point of view. Current is $15.49 down to $13.09. That is a difference of $2.40 an hour. So what you need to know is how many hours until you break even losing 2.40 an hour but gaining $15,000. Divide $15,000 by $2.40. You need to work 6250 hours before you would be up to the $15.000. You would need to work 60 hours a week the next two years to make the $15000, I did not mess with the sunday premium but you get the picture.

What am I missing? This is a super deal for you and a rotten deal for the company. Something just doesn't add up.