A multimillionaire who retired at 35 shares why he always tells people never to quit their jobs, but instead to aim for redundancy.
Sam Dogen, 47, a former investment banker, says he didn’t follow his own advice when he quit his job earlier this year after re-entering the job market for the first time since 2012.
While Dogen was on a large pension fund and therefore never had to work again, he indicated how he would go about giving others who are less fortunate their work.
“If you get laid off, you get unemployment benefits. You get severance pay, deferred compensation, subsidized health care. You get a whole bunch of things that give you a tremendous amount of financial headroom for your next venture,” he said. CNBC.
Sam Dogen, 47, a former investment banker who was able to retire at 35, revealed the most cost-effective way to quit your job
Dogen, the millionaire founder of Financial Samurai, says he learned the secrets of responsible retirement from work through his recent layoff.
He had been a stay-at-home dad since 2012 and, although he was not working, he earned about $380,000 a year in passive income, mainly through a portfolio of stocks and investments.
But after selling much of his portfolio to buy a new home, he went back to work, only to be gone again four months later.
Because he resigned, Dogen did not receive any severance pay, unlike how he left his employer in 2012.
He said his severance package consisted of three months’ base salary and a low six-figure severance payment.
For those who want to do the same, he says it’s especially important to realize how much power you have as an employee when you leave a company.
“As a former boss, I know the worst thing that can happen is a valuable employee quits and then you give them two weeks’ notice or less,” he said.
Dogen, the millionaire founder of Financial Samurai, said he learned the secrets of responsibly quitting your job from his experience when he recently quit his first job in a decade
To start the process, Dogen said it’s crucial to let your bosses know you’re dissatisfied, along with the warning that “I’ll eventually want to leave if these changes aren’t implemented.”
“Maybe they’ll give you a raise. Maybe they’ll give you more flexible hours. That’s great!” he continued. “No employer wants someone whose heart isn’t in it anymore.”
According to Dogen, in this scenario, it is absolutely out of the question to leave on bad terms. If it comes to that, it is better to make the departure as easy as possible for your employer.
He suggests telling bosses, “I’m willing to stay as long as I can to help make the transition. But let’s talk about severance in that light.”
In 2012, Dogen said that he stayed for two more months after this conversation and that during that time he helped train his successor.
“Often your employer will work with you, especially if you are an above-average employee,” he added.
Dogen pointed to the WARN Act, which requires large companies to give their employees 60 days’ notice before carrying out layoffs.
If this happens, it can be the ideal way to leave a company, as companies typically pay the equivalent of 60 days’ base salary.
Dogen said getting fired can be a blessing in disguise, and warned disgruntled employees that getting fired can have far more benefits than quitting.
He added that many people can get an additional cash severance payment on top of their base salary, which can be a “standard” one to three weeks’ salary for each year of service.
Looking to the future, Dogen said that getting fired can be a blessing in disguise and offers far more benefits than quitting when you’re unhappy.
“If you get fired, you get unemployment benefits. You get severance pay, deferred compensation, subsidized health care,” he concluded.
“You get a lot of stuff that gives you a huge financial boost for your next venture.”