Moominmama was offered a redundancy package. Seems a bit like an offer you can't refuse. When she asked if she would be fired anyway if she rejected it, her boss told her he couldn't tell her that... We don't know the details of the package yet. Her lower level manager said that as she is only working two days a week it's hard to involve her in projects or for them to take on projects that need her skills because she doesn't work enough. But she wants to take the package and doesn't want to work more days.
She plans to reduce the daycare days of our almost 4 year old for the second half of this year. After that he should be in full time pre-school.
I ran a simulation and through the end of 2024 the effect is a reduction in net worth of about AUD35k before considering the value of the package and after considering the likely value of the package it is about even. After that the effect gets progressively larger, but, surprisingly, in the long run (2029 and 2044) net worth is around 2% lower than in the base case. This is in contrast to the scary numbers that we are currently spending AUD 177k per year and my after tax salary is AUD 130k.
I feel like I must have done something wrong in the simulation.
2 comments:
At 7% ROI the $4MM NW will be increasing by about $280K pa, so even if her entire PT after-tax salary was previously being saved, the change in total NW would not be large in $ terms or as a % of NW. It wouldn't much affect projected changes in NW for several years (so the 2% deviation by 2029 seems quite reasonable, but I would have expected to see a bigger % change by 2044. Unless your projection already included retirement sometime between 2029 and 2044 - in which case the elimination of the PT salary was already pretty much factored in).
Yeah the plan was for both to retire in 2029 when I am 65 and for me to work half time from age 60 to 65. Anyway, she talked to HR now and they said that there was no restructuring and her boss made the whole thing up!
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