Have you ever considered that getting fired might be a better option than quitting your job? Sam Dogen, a 47-year-old millionaire who retired at 35, certainly thinks so.
He’s now sharing his unique perspective on why it’s often better to get fired rather than resigning voluntarily.
Dogen, a former investment banker and the founder of Financial Samurai, recently had to re-enter the workforce for the first time since 2012. Despite having a significant retirement fund, Dogen chose to return to work, only to quit after just four months.
This experience has led him to rethink his earlier advice to others.
According to Dogen, getting laid off can actually be more advantageous than quitting.
When you’re fired, you typically receive unemployment benefits, severance pay, and even deferred compensation and subsidized health care. These benefits provide a substantial financial cushion that can support you while you pursue your next opportunity.
Dogen shared that his recent job departure didn’t come with the same perks as his previous layoff in 2012.
Back then, he received a generous severance package that included three months’ salary and a severance check in the low six figures. This contrast highlights the importance of strategic planning when leaving a job.
To make the most of your departure, Dogen advises communicating your dissatisfaction with your employer well before you decide to leave.
By expressing your concerns and indicating that you might leave if changes aren’t made, you may be able to negotiate better terms, such as a raise or more flexible hours.
The Importance of Leaving on Good Terms
If you do decide to leave, Dogen stresses the importance of handling the situation gracefully.
Even if you’re unhappy, making your departure as smooth as possible for your employer can lead to better severance packages and a more positive exit experience.
Utilizing Legal Protections
Dogen points out that the WARN Act requires large companies to give employees 60 days’ notice before a layoff.
This can provide a significant advantage, as it often comes with 60 days of base pay and potentially additional severance.
Looking Ahead
In summary, while quitting might seem like the straightforward choice, getting fired can offer more financial support and benefits. Dogen concludes that, if managed properly, a layoff can provide a substantial financial runway for your next career move.