Layoff = opportunity?

[Lynn Kasdorf]

This December 13, I (along with 450 others) was layed of from our job with a very large tech company that shall go unnamed (the initials rhyme with "play noel"). I was there 8 years. It was a massive cutback and many senior tech people like myself were let go.

So, at age 50, I find myself at a crossroads. Do I try to find another tech job, where I commute every day and have to eke out tiny fragments of time to enjoy our farm and my emerging dream wood and metal shop? Oh, and by the way, take about a 70% cut in salary in the bargain, because I ended up getting raises over the years such that my last salary was way out of range with the job market. And traffic around here is getting constantly worse.

I am trying to scare up work-at-home tech consulting work, but this also seems like a perfect opportunity to try to make a go of custom furniture making (or machining or welding or electronics prototyping or some combo of all of the above). I think that as long as I can get enough tech consulting, I can maybe do both.

Working at home, my auto expenses will go way down. I'll spend a lot less on lunches (and probably loose weight). I am finding myself being forced to get up to date with technologies, which is a good thing. No question that I'll be healthier and happier and get to spend more time with the family.

I just wonder how many of you have found yourselves in a similar position, and have you been able to find enough work (doing what you love) to make the mortgage (and health care and utilities, etc).

To be sure, there is no way that I would have quit on my own, so I see this as a real gift, although it is a bit scary right now. My last paycheck is feb 15.

[Fred Voorhees]

Whatever happens Lynn, good luck with it. Hope everything turns out well.

[Mike Henderson]

If you can find a job in tech, grab it. Work until they throw you out and you can't get another job. I'm afraid you'll find that after your COBRA runs out, you won't be able to get health insurance, except at some very high rate (over $500/mo, maybe close to $1,000/mo). You're just reaching the age where people start to have health issues and the insurance companies know it. And if you get seriously sick without insurance, you'll lose a lot of what you now have.

You'll also be able to save some money for retirement during those years if you're working, and you'll pay down the mortgage on your house (if you have a mortgage).

Most people who try furniture making aren't financially successful. There just aren't that many people who are willing to pay for custom made furniture.

Wait until your COBRA will take you to 65 so that you'll have Medicare coverage, then try whatever businesses you want to try. If you don't succeed, you won't be left out in the cold.

Good luck in whatever you decide.

Mike

[patrick anderson]

I was doing freelance 3d imaging at nigths and weekends along with my day job as a architect. I used to commute 55 miles each way to work and leave the house at 6:30 am to get back home around 7 pm.

I was fortunate that the LOML supported the idea of me going solo. So last February, I jump off the ship and started to swim on my own.

One thing is for certain, I havent regretted it at all. There are some lean times now and then and of course the health insurance costs but overall I am far happier than I ever was working for someone else.

I wish you the best of luck mate.

[chris fox]

I agree with Mike. My father in law retired early making decent money. Their plan was to buy a RV, travel and live sparingly. They did this for 4 years. He didnt do his homework on insurance costs and unfortunatly had a mild seizure to boot. Once COBRA ran out and other resources for insurance ran out he had to go back to work.
He found a less stressful job with a short commute but he had a taste of the retired life and regrets going back to work.
Just have a insurance plan to protect you.
my .02

[brian lanning]

I just wonder how many of you have found yourselves in a similar position, and have you been able to find enough work (doing what you love) to make the mortgage (and health care and utilities, etc).

Lynn, I'm an independant consultant (dotnet and unix development) in the chicago area. The curse of our profession is that you have to live near a large city. From mapquest, it looks like you live near DC. If I were you, I'd switch to consulting. You'll have to work in DC. But you'll most likely make double. So work half the year. Or find a place that is ok with 30 hours a week. Or 4 tens, then three days off. You can do the occasional remote project, but those seem hard to find for me. I've also done projects where I worked on site three days a week, then home two days a week.

I like this way of working. It provides a lot of freedom and flexability that you just don't get as a wage slave. Have a look at www.dice.com and see what's there. Start as a w2 consultant, then incorporate before the end of your first project. Use an umbrella corporation if you need insurance.

If you turn your hobby into your career, it will stop being your hobby. I'd continue to do what you know, then use that to get set up in something else if you really want it.

Best of luck.

[Tom Ruflin]

Lynn, I've been down a similar road. I was laid off after 20 years at a large company working in IT, divorced my wife and sold her the house all in about a month. So there I was renting a room from a friend looking for work. I had a hard time due to the software I knew best was not used alot around town. I picked up some short term contract work, 3 months, and then decided to try working on something I love - boats and sailing. I went to work at a friends marina and found that when the weather was good it was fun. The fun stopped when fall haul out started and I was powerwashing the slime off bottoms of boats and it got cold enough that the powerwasher was making snow!! I found another contract job that lead to full time employment which is where I still am after 8 years. The benifits are good and I'm on track to hopefully retire in 4 years at 55 years old. Of course at retirement I hope to do woodworking but will not have top depend on it to pay the bills. Good luck in what ever you try. I can't wait to get out of the corporate world.

[Norm St.Onge]

Lynn, I can relate. At 43 years old my primary career had always been in the tech world (20+ years). But I always had fixer-uppers and handyman work going on in the background. And then, just about 3 years ago I was in Vegas manning the company booth at a trade show when the CEO stopped by and gave me "the news" about the future direction of the company - and it didn't include me. Truth is I was burnt out, hated the job, the commute, the Dilberts...but the money had me handcuffed - or so I thought.

Long story short, I made a complete life change; sold my house near Boston and bought an old run down farm in southern Vermont where I hung out my shingle doing handyman and small remodeling jobs. I was probably lucky - although a solid business plan and getting involved in my new community helped - but I've been as busy as I want to be since about my 3rd month into it. Stressful (or is it just exciting?) to be sure - but a different kind of stress since ultimately I'm responsible for my livelyhood, not some curmudgeon in the corner office.

The health insurance piece is key. I joined the local Chamber of Commerce and their group rates (for a single adult) were actually reasonable. Maybe other professional groups you have access to have some bargaining power as well.

If you're willing to live without all the creature comforts the golden handcuffs in the corporate world endow you with (insurance, paid vacations, paid sick days....) you stand a chance. But if you're hoping for full bennies and corporate $$ as a self employed person in the wood trades, well, it may not work. I chose the lifestyle, schedule freedom and self direction over the corporate gig.

If you're able to piece together part-time corporate/part time wood it might provide the best of both worlds.

Good luck. -Norm

[Alfred Clem]

It may be cold comfort, but you have plenty of company out there in the tech world today. At age 50, you should be in or approaching the years in which you maximize your earning potential based on experience and your work record. Unfortunately, this may not occur and through little or no fault of your own. I have some advice, based on experience:

1. Invest in yourself. Whether you wish to admit it or not, you have been learning more and more about less and less in your specialized field. Take a step back: is there part of your technical background that needs updating? This period of idleness may be the perfect opportunity to expand your knowledge, increase your networking among members of your profession (are you keeping in touch with all those with whom you have worked? Your old bosses? Writing letters to every prospective employer within 30 miles?). Remember: you are NOT looking for a job; you are offering your services. It's all in your approach, in your attitude. You are a winner and you should act like one!

2. Incorporate. Takes only a little paperwork, insist on being an independent contractor, and charge every penny of your expenses to You, Inc. Let the tax laws work in your favor for a change. Don't get suckered into settling for a paycheck ever again.

3. Keep your farm, woodworking, metalworking, etc. where they are. You can't crack the nut with them unless you are truly gifted and have a client referral base already. Or you may be one of those purists who likes to go hungry, barefoot, and alone.

4. Are you a member of AARP? Don't laugh. You are 50. Their insurance benefits to members are worth investigating.

5. At 56, (that was 24 years ago) I walked away from the corporate world and never looked back. As it was, things worked out quite well. We were available to lend a hand when our daughter developed a fatal cancer. You can change your life, too. As the saying goes, nobody said life was a party -- but while we're here, let's dance!

[Jim Becker]

Lynn, I'm very sorry to hear about your layoff. Unfortunately, it's so common any more, it's hard to imagine that people used to work for one company for 25-30+ years.

You've received some good advice so far. Tough choices because there is an attractiveness about taking another stable job with benefits, even with a big pay cut in lieu of striking out on your own. That or the consulting gig are probably your best choices relative to income with your experience, etc., for the reasons that Mike layed out...it's tough to break into the furniture business and it would likely be several years before you can build enough cash flow to fully support yourself in the best of situations.

One thing you don't mention is if there is any other wage earner in the home and if they have benefits available. The fact that Dr. SWMBO has benefits "slightly" mitigates my own fears about this topic, especially 'cause I'm soon to have the same big-five-oh birthday. Making money is a doable thing in many ways, but that health coverage is the kicker...

[Joe Mioux]

Find another day job and keep woodworking as hobby.

The world of small business is too demanding for most people.

If you want examples, I can provide......

Hint: AR, AP, HR Employee issues, Insurance, Taxes, Marketing, PR, Merchandising, Operations, Administration, Maintenance, and Janitorial are just a few issues that a small businessman deals with daily compared to dealing with one's own job description.

[Mark Marzluf]

Sorry to hear it....

3 years ago I had the same thing happen. I was with a company for 9 years and had climbed the ladder further than my non college degree education would allow me to replicate anywhere else without starting all over again.

Unlike you, I was in my mid 30's and felt that "now is the time" to try and make a go at woodworking full time. I cashed out my 401K to pay off some debt and buy some extra tools.

Well..... it's been 3 years now and I'm still doing it. I'm making 1/4 of what I used to make and bills are tight. Luckily, my wife has a good career as an RN for the local Childrens hospital that includes insurance coverage for the family. I won't lie to you, things have been tough. We've had to cut WAY back on spending and often are running paycheck to paycheck. Some weeks it's a mirracle that we pay all the bills.

On the flip side...... Things are starting to look up. I'm being requested my a couple designers in the area, have a partnership with another company making replication pieces, and have a tool that may be hitting the market late this year or next. ALL of which have been pure luck. If anything at all had gone wrong in these past 3 years with the house, cars, wifes job etc, we would have been in a world of hurt.

I'm happy that I made the decision and enjoy every day in the shop. It's nice having control of my own schedule and the freedom to do things durring the week when stores and banks are open. Haven't lost any weight though, the fridge is always 20 feet away. I do use less gas in the truck, but probably not enough to make a huge difference because I still have running around to do.

Keep your chin up and do what feels right in your heart. Sometimes money isn't everything. Personal happiness counts for a lot.

Mark

[Bruce Boone]

I made the jump several years back. It started when both I and my boss were given a huge pay raise and new titles by the VP of our large fortune 50 company. This was completely out of the blue and totally uncharacteristic of the company. Suddenly, I was at the level my boss had been working 15 years to get to and he was going to be damn sure he busted my chops for all the sweat he had gone through to get there. I ended up giving my resignation, and he was called in from vacation to HQ and fired. They ended up shutting down the whole division. I had been making titanium rings on the side and decided to make the jump to move back to Atlanta where I was from and do them full time. I was somewhat forced to make a jump, and I had to go whole hog. It was scary as heck at first and I often wondered if I had done the right thing. It took a while to gain steam, but I was able to pull it off. I sell on the internet with a site I wrote myself. I'm earning 5x what I was, live in a nice house, and there's no commute. It is very gratifying when people want your stuff.

The trick for me was to specialize and become very good at a niche product. I think that is the key. I also believe in getting the very best tools you can afford at the time because you find that when you hone in on products that work for you and weed out those that don't pull their weight, you might be going in directions you never thought of. Having better tools than you thought you would need pays off in those cases. I certainly never forsaw myself earning a living from the Internet; I didn't think I had time for that stuff. You need to stay flexible and be able to make whatever comes next. Embrace technology and the information that's out there. I'm always looking for other markets or processes.

If woodworking is the goal, then you need to become the very best at some very specialized aspect of it. There are a lot of people with saws and routers; the key is getting equipment or utilizing ideas that the others don't have. If being financially secure is important to you, always look to increase effciency of your processes. Get the dollar per hour number up and always ask yourself "what is the most valuable use of my time right now?" I love that aspect of manufacturing, because the better you get at figuring out better processes, the more it pays. I typically make several hundred dollars per hour now when working in the shop. I couldn't have done that by other means.

If I sound like I'm on a soapbox; I am. If you decide to jump, you need to do it whole hog and have the will and determination to make it work. If you can do that, it will be well worth the effort.

[Bob Aquino]

Lynn
You didnt say whether you have a spouse thats working and can cover the insurance, that makes a big difference in what way you may want to go. You have to balance practicality with following you dreams.

I just hit the big 5-0 last year and survived a layoff but had to take a job at a different location with a much tougher commute. I'm also in IT and I dont get much personal satisfaction out of it which makes for a long day. If I had been laid off I'm not sure which way I would go, part of me really would like to do something hands on like woodworking or remodeling work, but I know it wouldnt come close to what I make now. I'll probably tough it out for a few more years till the kids are out of school and then hopefully my wife and I can go to working part time, even 4 days a week would be better than the grind I have now.

I think that if you can cover your bills and keep the health insurance going you should see where this change of life will take you. If you are the sole provider then you have to look out for your family first. There's plenty of life left past 50 to be stuck in a job that does nothing for your spirits but pays the mortgage. If you can cut back on extraneous expenses and get by on much less than it may be the way to go. Too often we get used to living a life style that is very comfortable but much more than we really need. I've always believed that when life closes a door on us, somewhere else a window is opened. You need to find the open window, wherever it may take you . Good Luck.

[Joe Trotter]

These folks ar in Richmond, not sure how close that is to you.

http://www.mergeinteractive.com/careers.asp