Tough Decisions

Cat is offering a voluntary severance package to all management. My package would be worth $52,745, or about $37K after taxes. Josh’s would be $50,478, $35K after taxes. In addition, we would receive outplacement services for 12 months and COBRA subsidy for six months.

Obviously neither of us wants to leave, but the reality is we either have to risk it and hope for the best, or I take the buyout and Josh keeps his job (because I am more easily employed with a business degree than he is with an engineering degree in this market in this area). And I don’t mind ‘taking one for the team’, but it would still suck, I’m not going to lie.

If I take the buyout we can pay off both of our vehicles and can then pay all of our bills and have $1K to live on each month with Josh’s salary. I know that I will not find another job in this area that will pay me nearly as well. I’m estimating a 50% decrease in pay. But, I would be able to find a job somewhere. This is assuming that Josh does not end up being involuntarily laid-off. Then we’d be screwed.

If we risk it and both stay, we could both end up involuntarily laid-off at some point. And without the package we couldn’t pay off our cars, and could then just barely make our payments each month if only one of lost our job. We’d sell the truck, but we’re underwater to the tune of $8,500. We’re just about even on the car. We have about 4 months of an emergency fund saved up, so we could at least make the bills that long.

I really don’t know what to do. I don’t know how to make the decision. We have until January 12th to decide, but I don’t think time is even going to be any help. 2008 has super sucked. I should have known better than to think I could make it the rest of the year without something else in my life completely crashing in all around me. Happy freakin’ holidays.