Early Buyout / Early Retirement

ABOUT THIS EPISODE

How should you respond if your employer is acquired and you are offered an early buy out or some other option? Listen to financial expert John Browning discusss differeing liquidity events throughout your life. Learn more from John when you reach out to John at GuardianRockWealth.com.  

Welcome to the build your life podcastwith John Browning. Build your life as a relaxed and unedited conversation with financialexpert in number one Amazon bestselling author, John Browning Jones the founder of Guardianrock wealth and serves clients across the United States. John's the author of thebook build a life, not a portfolio, a guide to your financial future basedon your personal values, which you can purchase on Amazon, or stayaround to the end of today's show and I'll tell you how to get afree copy mailed right to your door. I'm Michael The lawn, your hostfor the next few minutes as we chat with financial expert and business owner JohnBrownie. Hey, John Brownie, is a great week where I am.How is it where you are? It is very nice. It's it's warm, it's sunny. They were seeing we would get some some rain this afternoon, but haven't seen it yet, so I'll take a little rain once ina while. Yeah, it's girl. It does help to bring clarian yes, and it gives me an opportunity to go mow the art again. Hey, I've got a question and this doesn't affect well, maybe it does morepeople than I really know, but you've heard of people who have worked fora company for ten, Fif, twenty, thirty years, let's say. They'reusually middle aged people, and the company gets bought or something and thecompany comes in and offers them an early buyout package or an early retirement package. unpacked. That for us. I've heard about that happening. I've neverhad it happened to me, but do you know any mighty has happened withand does it turn out okay or what? Yeah, I mean I am theone that I know the best is my dad. He he had anearly retirement buy out and I don't know a lot about it, but thatwas back and his you know, Middle Late S. I don't remember theexact year, and he is now eighty...

...three years old. Just turned eightythree, okay, so he and he had a pension on top of thebuy out. So I mean he's doing okay. He's you know, hedoesn't live a lavish lifestyle. Doesn't want to either, so that's fine withhim. And he's getting a pension because they had a pension back then andthat's still paying him and he also gets social security, but he also hassavings as well. So work out just fine. So he so, he'she retired mid late s and he's eighty three now. So could you saythat he's been retired as long as he worked? Maybe? Yeah, it'sit's real close. If not, if not, all over that. Huh. That's amazing. And as amazing is that sounds, you know, withthe length of life that we have now, it's it would not be unusual forsomebody to work thirty years and be retired thirty or forty years because we'reliving longer and, as I'm glad you dad had a pension. We talkedabout that two or three episodes ago. We talked about how to create yourown personal pension if you don't have a pinsion. He's working or living offSOCI scurities. A portion of that. We talked about that a couple timesago. You said he's got some investments are for one Ky. We're goingto talk about that in depth in the in the coming week. So it'she's layering different income streams on top of each other to make up the thewhole river of income. Right. Yes, and that's that's really important. Buthelp us understand this, this buy out early retirement. Think, andI'm sure there are again, a thousand different ways that happens. But isthere a way to kind of ballpark here's typically when this is going to happen? Is it a corporate buy out or I mean, when does something likethis should should I expect something like this in our lifetime if I'm working fora company or I mean, what are...

...the odds or what does it matter? Well, it matters, but I think we can expect, I meaneven even as whole as I am right and we no longer tend to workfor the Steam Company for thirty, forty years. True, when I tellpeople that I worked for one of the Big Wall Street companies for eighteen years, they kind of look at me like wow, you know somebody younger,because most of the time you don't work for a single company that long anymore. For whatever the case, maybe either you decide you could do better somewhereelse or they decide that you should come around. But with whenever you hearthat they're that your company is being acquired or, frankly, your company isacquiring someone else, you should be prepared to potentially be, shall we callit, downsized, reduction in force, just playing old, laid off.There's a lot of politically correct ways to say it, but in at theend of the day, you you no longer are getting that paycheck, you'renot going to that capical anymore, right, and you know it's okay. Peoplethink like when I got well, when I was laid off after eighteenyears at the same company. I mean I felt like, and they tellyou that, that this is what happened. You feel like somebody died. Yep, I mean that because that at some point that had become my identityand I'm willing to admit that and I I'm happy to chat with somebody who'sgoing through it now, because it's tough. You think kind of the world justended, but it didn't. I assure you, it's not just inand the key thing is, what do you do with typically you get achunk of money and plus you've got this for one K that you've been investingin. You probably don't have a pension...

...or anything like that, but you'vegot a one K that you've been putting money into. You maybe you didn'tknow exactly what it was involved with or anything else, or just think goesout and does something right. So now what do you do? That forone K number one, as we've talked about in previous episodes. Don't leaveit there, right. But what do you do then with this chunk ofmoney? While most people will take it and put it all in the bankand they're scared to death, and this is a normal, customary response and, frankly, might be the right one depending on your situation, but anotherway to do it is, you know, keep looking for that job, keeplooking for that next whatever it is, and invest that money in a waythat's right for you and you it can actually be a very good thingbecause if you get that next job right, because when you're today's fifty is,you know what seventy used to be, or whatever they say about that.And you know, I know at I'm fifty, I'm getting ready toturn fifty two, and I am not ready to retire. I'm and I'mI hope to work another twenty, maybe longer years and because I like whatI do, it's right, like you do as well, and so itcould be a great thing. Al Sudden I got this chunk of money andI get my next job. Well, whatever, you don't, please don'tgo buy a boat because, well, it's your holes in the water.Into which you pour money. Right, that's just okay. You can buyabout, but maybe not the bigger one, maybe that small yeah, that's right, yeah, don't yeah, that's that's not the first thing you shoulddo if that. If so, this happens if you're downsized or outsized orearly retirement. But the first thing you should do relay is called John andexplain to him what's going on so he can guide and direct you. Youhave taking money into cash may not be a bad thing, although there areprobably some tax ramifications to that, but I don't know, because I don'tgive financial advice on this podcast, nor...

...do you, John, and sothese are conversations we have to have. Because the other thing, you know, early retirement, early buyouts. We're like, yeah, that happened inthe old time, like with your dad. But what about people who start companies, tech related companies, and they build them for five or six yearsthen they get bought out by a bigger competitor? Right, it's going tohappen. As a matter of fact, I guess I work with a couplefolks that are in this, in this are going to be in this situation, and it's a it's a real concern, because those things are typically sometimes theyget shares, sometimes they get cash, sometimes they get both. Sometimes theyagree to work for that company for a certain length of time, sometimesthey're out the next day and and what do they do? They have spenttheir lives building this company and suddenly all they're left with is a chunk ofchange or restricted chairs that they can't really buy anything with. But maybe theycan reduce their risk if they do things the correct way. There are waysto reduce the risk of something that has to must be held. Okay,there's ways we can reduce that risk for them. So there's there's a lotof things that go into it. If you are just having what we calla liquidity event, and that's also, by the way, where we reallyget into building your life, here we go, not just your portfolio.Yeah, because you have, generally speaking, you have really put your life intothis company. If you've been that successful and you have built something thatsomebody else is willing to pay a lot of money for, that's going tomake life changing money, you may not have built your life the way thatyou really want your life to be. Yep, and you can chat withElon Musk or any of those folks that...

...have billions and they have more thanthey can spend, and they will tell you that money really doesn't buy happiness, but it can make the life that you choose to build much easier.Yeah, if you treat it kindly. Yeah, money, money, isat somebody told me the other day, John, money isn't amplifier. Ifyou're if you're a wicked person, is going to amplify that. If you'rea good person, it's just going to amplify that. It's just going toamplify. It's just a tool, right, it doesn't bring out was watching amovie the other day and the guy said, whoever said that money can'tbuy happiness never bought a dog. I chuckle, I chalcol I'm like God, okay, there you go, other than buying a dog. Yeah,money can't buy the happiness, because we just see it in recent months with, you know, billion billionaires getting divorced. Money's not buying them happiness. Right, right, and and so that's why you have to build a life, not a perform don't focus on the portfolio, focus on building your life. Use The portfolio and let John Help you build a portfolio to sustain yourlife and give you the lifestyle that that you want and when this opportunities.I love how you put that. A liquidity event when, you might add, when you're sitting in a position where you may have a chunk of change, as I say, come in your way, you need somebody like JohnBrowning that you can reach out to and say, okay, help and thenyou can have some conversations around it, right, because that I mean.Some people just get a few thousand dollars or tens of thousands. Others geta few tens of millions because they've been part of a building of Acom orwhatever, a tech company that gets acquired by somebody else, and you justmaybe a third or fourth or fifth person down the line, but you're goingto get a chunk of change it you never really expected. Just like wow, what? What? What? What? What? What do I do?Right? Because you're too young to retire at twenty five or thirty five, right, but you can use it...

...to build that life, right,and you're so true. You don't have to be the owner of the companyto make quite a lot of money in the event of the liquid again event. You think of the there was a story of facebook, of the thethe janitor, you know, had I don't know if it was a millionor several hundred thou. Suddenly, what do we do with this? Right? Yeah, and that's exactly if you suspect, by the way, thatyou are in a company like this that's going to have a liquidity event,and often they'll talk about it, you know, and if if you're inthat situation, talk to somebody, talk to a financial advisor, before ithappens. Yeah, because I will tell you this as well, and thisis a really wellknown statistic, is that a very large percentage of lottery wenthere's go bankrupt, they go back. Yeah, and there's a lot ofas do a lot of sports figures. Young sports figures don't have good whodon't? Who Don't have John Browning's in their corner? They make millions,but they spend millions, right. Yeah, so absolutely don't have the no guy. They that's right, they don't. John's the no guy. That's anno, telling all your friends and neighbors and relatives who want money, sayingnope. The other thought I had, John, was yeah, the I'vegot a friend who's going into esports. ESPORTS is huge money. They're right. If you're in if you are, your children are in esports. Theyneed to be talking about John, about these things, because it is.It is just crazy how the money can flow so quickly and you can eitherblow it or stow it or invest it and build a life. And that'swhere you come in, is helping people just think through, navigate and say, well, here's a here's a right thing to do. That somebody toldme the other day that I'll probably get.

I think it was Shaquille O'Neil,Big Basketball Guy, right. He's a successful guy. Yeah, andoff the court well, because of the investment strategies and decisions he made earlyon his his his John Browning gave him great advice, I guess, andnow I guess he lives every month on like I think he gets a milliondollars a month out of his investments. Every every month. You could almostlive on that. I'm sure he has social scurity on top of that andall that, but sure thought, oh my goodness, but he made decisionsearly on knowing that he was going to make lots of money, but hedidn't waste it. He planned well. I'm sure he invested consistently and he'sdoing really well right now, and you don't have to make the money thatShaquille O'Neal makes, to plan well and do well during your life and yourretirement. If you've got somebody like John Browning helping you, navigating you,guiding you ask me, you write questions to help you build the life youwant and if you want the boat, John will help you figure out howto get the boat. I hope you playing for it. That's right,that's right, that's what it needs to be. So, John, thanksfor another great episode about early by US. I really want to first thought aboutthis. I thought they just got kind of a nonsecuitter, as myeldest son would say. It's just nobody's that's that's a thing of the past. But the more we got into it, I realized now it's the thing ofthe current and future because of all these buyouts that are happening all thesetech companies in different kind of young people are going to experience this liquidity eventin their life and they're going to get tenzero, Twentyzero, two hundredzero.What are they going to do with it? Oh the other thought that I wantedto show on here is when you're working at a company and they starttalking about the IPO that our company is going to do. The have anIPO. Okay, that's what you need to call John and say, Hey, may or may not happen, but what do I do? Because ifyou've got stalk in a company of this going public, that might be aliquidity event for you. Right. So,...

...anyway, that's fun. I lovetopics like that that come out of the blue and really surprise me.That was fun. So, John, that's all I have for today.Let's surprise them with a great episode again next time, because I know it'sgoing to be good. So I look forward to talking with you then.All right, we'll see you there. Money really is a big part ofour lives, and John Browning can help you and your family learn how tokeep money in the proper perspective. It's important, but it's only a toolthat could help you build the life that you want. If you like,John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact US link andsend your request. John Will Mell a copy of his book right toyour door absolutely free. Thanks for listening to building your life podcast with JohnBrowning. Be Sure to subscribe to this podcast so each new episode will besent to you automatically when it's released. Have a terrific day.

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