Reflections on my first year retired and my well wishes for yours!

On this day last year, August 15, 2023, I voluntarily hung up my corporate soldier badge to retire from Intel Corporation with bells on. Phew! It flew!

I captured what that unforgettable day was like for me along with all the pre-meditated steps I had taken ahead of that moment in this blog I wrote for you in hopes my post would help you to contemplate your own potential change in lifestyle one day too.

Today, reflecting on that day, and 366 of them since, I can tell you I still have no regrets about retiring early from corporate life. I wish it on everyone.

I want to share support for anyone who may soon be contemplating this milestone, especially my former colleagues and friends still at the mothership who are yet again facing more workforce reduction actions with sweetened early retirement buy out packages.

When I walked in the doors of Intel on May 22, 2000, unbeknownst to me, the behemoth’s heyday was coming to an end. The Dot Com Bubble later that year saw thousands lose their jobs.

That blow was followed by at least half a dozen other economic downturns, bubbles bursting, or other macro events and everchanging business conditions (some misses and bad bets) that precipitated a somewhat constant spattering of workforce blows which carried labels such as: workforce reductions, corporate restructurings, refactorings, cost cuttings, austerity measures, and rightsizings.

Each action is exhausting, never invigorating, at least not at my rank. Somehow, I survived that environment for 23 years without being directly impacted by any of the ensuing layoffs. They weren’t all bad years; I did witness a rough tripling in revenue growth and some happier paydays and celebrations over my time overall. But the indirect impacts of the bad years weren’t nothing; in my 23rd year, as soon as I was eligible to officially retire on my terms, I took the next voluntary package that was offered to the organization and practically fell over the [finish] line which I had drawn in the sand for myself sixteen years’ earlier as my personal retirement deadline.

I vowed to go enjoy my freedom and my life that day I chose to take their voluntary separation package. I wish that same on-your-own-terms scenario for everyone. And if you’re reading this far and are younger in your career, start saving and investing well now so in the future your fate at a corporation will always be something you can stay in control of self-reliantly.

Today, many of my friends and colleagues who are eligible to retire are soon to get an even sweeter (“enhanced”) retirement package invitation to exit our mothership this fall, certainly sweeter than the one I grabbed one year ago.

Grab it, my friends!

At my one-year mark, I’m still feeling victorious and wish you this feeling too, I'm happy to reflect on that and share some [non-expert] planning considerations for you (or anyone working in any company where similar considerations may someday apply too) ...from my own experience:

• I keep a cute little sign near my desk now at home. It reads “DON’T LOOK BACK, YOU’RE NOT GOING THAT WAY.” I don’t even need this reminder; I have not missed the daily grind. Some people are certainly missed. But the grind, the pressure, the performance reviews (giving and receiving), the inability to unplug even on vacation, and the unrelenting stress of delivering results that exceed all expectations are truly not missed. I’m very pleased I left when I did and have not looked back.
  

• Be ready to take your skills, interests, personally owned data at work, professional contacts, and lifelong friendships that matter with you (digitally included). Sometimes I miss the ability to search my old work PC and OneDrive for just random non-company stuff I had once bookmarked or had referenced and recorded only there. Do not attempt to take any company confidential content or files with you. Just don’t. But be sure you won’t miss the stuff that was more personal in nature to you, your professional development, your network, and your pay, stock, and benefits information you will need later on.
  

• Take a moment to examine any perceived “golden handcuffs” you think you have tying you to the company and try to view them differently. You’re not likely as stuck as you think. If you are to take an exit package, and you leave in good standing, typically there will be a moment in time after a comfortable, paid respite where you could certainly try to return to the company (or another) and perhaps even see yourself grabbing a “golden ring” all over again—potentially in short order. In that case, your skills, professional certs, connections, and passions will need to stay sharp and fresh to continue to create opportunity for yourself (so don't entirely leave these behind, see above bullet).
  

• Before you leave the company as an official retiree, check out all the insurance offerings you may want to enroll in while you still can, all those that aren’t bound by the Health Annual Enrollment window anyway should be considered before you terminate employment. Many are portable (for official retirees) to take with them and pay for individually. For example, supplemental life insurance, disability, critical illness, etc. It's my understanding many of these are not bound to any enrollment timelines but may require steps or EOIs (evidence of insurability). Investigate these. You may be healthy right now. Our bodies and organs, however, can and do give out or disease can and does creep in once a body realizes it no longer has a need to keep pumping overloads of cortisol and adrenaline. Be covered for the worst unforeseen scenarios in your new norm, please. Whether you port these types of insurance plans or qualify for them on your own outside of the company on the open market, ensure you have all possible risks mitigated with insurance policies or your own sufficiently self-insured funds in the bank. Always cheaper to insure before you have pre-existing gunk, and more age, pushing you into higher premium tiers.
  

• If you already have Group Legal you can port that coverage too as a retiree. But if you’re planning to drop it, at the very least open/start a case before you leave your employee coverage behind (if you need any legal work done). A case, once opened, is covered through the completion of the case, even if you terminate/work your last day in the midst of the case and even if you don’t port/continue the coverage premiums individually as a retiree. This can be a great way to get an affordable estate plan, will, and trust done, something everyone—especially retirees—should have in place.
  

• Pay close attention to all the termination and retirement checklists. Pay close attention to every one of the line items on all the termination and retirement checklists. Yes, I wrote this consideration twice for emphasis. There is a ton of work to be done before you terminate employment from the company, especially as an official retiree. Do not miss any of the deadlines and steps that HR have carefully outlined for you. Some will feel redundant or unnecessary but please spend time on them anyway, ensuring you are all copasetic. One checklist item I am grateful I took care of before exiting was signing up for the Encore Fellowship program, a fabulous retiree perk that sponsors your first passion project outside of the company along with a little stipend. I’m loving my role at my non-profit. I blogged about it when I was new on the job, if you’re interested in reading more about it.
  

• Download your employer stock account details. It’s easier to have on hand in full original report form out of your employer stock account than later when your holdings are transferred to a retail account and a bit more difficult to uncover your original grant date information and purchase history. But if you don’t do this, it’s not lost, just a bit more clicking and tedious to capture.
  

• Un-enroll in ESPP after your last eligible purchase as soon as possible so you do not contribute unnecessarily and have to later await a delayed refund of your contributions back without interest or shares. Take copies of the public ESPP purchase and QuickSale price history documents published on the corporate handbook pages. You may also want to get copies of W-2 Breakdowns. Anything you think you might find helpful later, depending on how far back your shares date.
  

• Consider how to maximize your last remaining pay checks before your termination date. If you have the benefit of 3 or more pay cycles to impact your take home pay, tax withholdings, or workplace savings account balances differently then don’t delay; it usually takes a pay cycle or two before your changes to things like your W-4, 401(k) or HAS/FSA can take effect. The final buyout check won’t be leverageable for any voluntary benefit contributions you were making on regular paychecks, taxes will automatically be withheld on your separation (buyout) check without contributions taken at a rate akin to bonus pay vs. regular pay/income. Plan accordingly and as best you can for this larger tax year’s impact.
  

• Remember that your flexible spending accounts (the use-it-or-lose it money you may have set aside for a presumed full year of employment) will not be useable on any services you receive after you terminate employment, only services received before your termination date. So, if you have a balance, use up any FSA funds before your termination date and try to stop contributing if that helps ahead of your final paychecks (unless you can use up all funds by your last day worked—it’s the IRS who will define what eligible expenses are, so check for them and get them spent best you can so you do not forfeit these monies). Your HSA monies are yours for life, but your FSA monies weren't so 'flexible!'
  

• Have a plan for your final separation and buyout check. Will you need this money to stay liquid to help with life expenses? Want to invest it? Brokerage vs. IRAs vs. other assets? Pay off your mortgage or any remaining debts? Want to be in a high yield savings account until you decide all this? Maybe a CD for a longer duration and a better rate than a HYSA? You have options. Think about not donating cash to charities this year if you have shares, where donating shares may yield more favorable taxation treatment all around (not just this year, but any).
  

• Think about your health, dental, vision insurance once separated. Understand COBRA. Understand any COBRA subsidies you may receive and the timings/expiry timelines. Understand how COBRA works with your SERMA benefit (if eligible/applicable to you (Intel folks, I’m talking to you, if you’ll need SERMA sooner than later) this medical account will be held for you in the form of stored credits to use (calculated at a rate of $1500 per year of your service to Intel up through 2020, interest earning) for any health or long-term care plan premiums. Once you understand this picture for yourself, then make a plan for staying covered until and maybe even beyond your Medicare eligibility. Cost out the transitions in the years ahead too and decide on when and how you’ll pay for your co-share costs. Health care costs will be among the biggest expenses you have in retirement. If you ever have to change plans mid-year, then understand what resetting the math on an out-of-pocket maximum (OOPM) in the middle of a plan year might cost you and your family? Would finishing a year by picking one type of plan (say a co-pay plan) to transition to on an interim basis before starting over on January 1 with a high deductible plan for a full year save you some money? Think this through well ahead of the transition timelines that are ahead as you move off employer plan(s) to COBRA and onto future coverage(s).
  

• Some of these financial and risk mitigation questions are easy, others are a little more complex and may benefit from running numbers and scenarios out using a scratch pad and pencil, or an Excel spreadsheet, or leveraging a financial advisor. Free financial counseling via Fidelity was always offered back at the mothership too. Bounce your situation off a couple or few folks, call the service providers and talk to them about scenarios planning, and leverage this community and your peers too as you contemplate your next move(s).
  

• Definitely spend ample time to know/calculate all your separation pay and other sources of money or income you’ll have to spend going forward. Understand what your monthly budget’s incoming and outgoing cash flow will look like to live on once your regular paychecks stop coming in. Do you have passive income? Dividend income? How much stock is going to vest, be available, for how long and at what value? Any other sources of income to live on and fund your best life with? Will you be able to take penalty free withdrawals from your 401(k), IRAs, or other retirement savings accounts? By when/what age/for how long? There are IRS rules that allow you access to your savings earlier than 59.5. Research these tacks and plan accordingly to not outlive your money by a longshot.
  

• Keep a healthy perspective on all that is going on. This too shall pass. Your new normal is in reach. You get to design it the way you want. Having robust, high-caliber career on your resume boosts your employability from now on. Enjoy being sought after for that experience, especially if you’re ready to start looking to contribute to the workforce again. Or enjoy your financial freedom if you now have it in reach.
  

• Passion projects abound as soon as you are ready (once you’ve taken a nice, long, relaxing, well-deserved beat), look for them, create them, embrace them. As a retiree of Intel, you can do an Encore fellowship, volunteer in the community (matching grant eligibility continues for retirees), join various retiree or alumni groups, or design your own days ahead as creatively, energetically, and socially as you like. I’ve not had a chance to be bored yet.

Changes! They’re upon us all, all the time. We all had to read “Who Moved My Cheese” by Spencer Johnson, M.D., all those years ago for a reason. I’ve still got my copy right here. Keep the moral of that little corporate fable in mind and realize that you’re going to come through this change resiliently too—you’re ready and capable.

If I can be of any help, or this post helped you already, please leave me a comment to let me know how you’re doing. Club friends, let’s also all try to add to the sharing is caring theme here with additional considerations you come up with as you contemplate or reflect on any of them I may have missed. Take a few seconds to sign up if you’re not a Club member already so you can leave your thoughts and comments on the bottom of this page. Your participation can surely help ease this big life event for others too, as well as yourself.

Be proud of this milestone when it comes your way. I'll be proud of you too!

Retirement (especially early) should hopefully always be celebrated as a truly victorious moment in one’s life.

All my best wishes!

Because money matters,

el

(not an expert, just care)

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E.M.Powers ("el") is a regular person with no particular financial credentials or expertise who happens to be a money enthusiast and the founder of The Money Matters Club, a virtual watercooler for like-minded individuals with a thirst for building their own financial health. Since 2006, she's helped thousands of co-workers build their financial literacy and wealth by participating in The Money Matters Club, a community she built on her employer's internal network. Since 2023, she's been attempting to scale The Club's reach through its second home on the World Wide Web. Her opinions--as well as the opinions of all participants--are just that: opinions, which are subject to flawed logic, math, typos and correction. She keeps a growth mindset and is also always learning something new or bolstering her own understanding after discussions at The Club. All information shared is done so with the best intent to inspire and empower others to learn more about money considerations toward building their own financial muscles. Nothing shared is meant as individualized advice that anyone should act on without doing their own curious research and personal decision making. There are no dumb questions at The Money Matters Club. Your financial health and literacy are what this Club cares about. All investing involves risk. All results can and will vary.

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