A multi-millionaire who retired at 35 revealed why he always tells people to never quit their jobs – and to aim for getting fired instead.
Sam Dogen, 47, a former investment banker, said he failed to take his own advice when he quit his job earlier this year, after he re-entered the workforce for the first time since 2012.
While Dogen was sitting on a hefty retirement fund that means he never has to work again, he offered his thoughts on leaving work for others who aren’t so lucky.
‘If you get laid off, you get unemployment benefits. You get a severance package, deferred comp, subsidized health care. You get tons of stuff that gives you a huge financial runway for your next endeavor,’ he told CNBC.
Sam Dogen, 47, a former investment banker who was able to retire at 35, revealed the most beneficial way to leave your job
Dogen, the millionaire founder of Financial Samurai, said he learned the secrets of responsibly leaving your work through his experience of recently quitting.
Since 2012, he had been living as a stay-at-home dad, and while he didn’t work, he made around $380,000-a-year through passive income, mainly through a portfolio of stocks and investments.
But after selling a large portion of his portfolio to fund a new home, he returned to work – only to leave within four months.
Because he quit, Dogen didn’t receive any severance pay, the opposite of how he left his workplace back in 2012.
He said his layoff package included three months base salary, and a severance check in the low six-figures.
For those looking to do the same, he said the most important thing is understanding the power you have as an employee leaving a company.
‘As a previous boss myself, the worst thing that can happen is when an employee of value quits and gives you two weeks’ notice or less,’ he said.
Dogen, the millionaire founder of Financial Samurai, said he learned the secrets of responsibly leaving your work through his experience of recently quitting his first job in a decade
To start the process, Dogen said it is vital to communicate to your bosses that you’re unhappy, along with a warning that ‘ultimately, I’d like to leave if these changes are not met.’
‘They might give you a raise. They might give you more flexible hours. Sweet!’ he continued. ‘No employer wants someone whose heart is not in it anymore.’
Dogen said leaving on bad terms is a big no-no in this scenario, and if it comes to that, then making your departure as easy as possible on your employer is the way to go.
He suggests telling bosses: ‘I’m willing to stay as long as possible to help make the transition. But in light of that, let’s talk about a severance package.’
In 2012, Dogen said he stayed on for two months after having this conversation, during which time he helped train his successor.
‘More often than not, your employer will work with you — especially if you’re a better than average employee,’ he added.
Dogen pointed to the WARN Act, which mandates that large companies must give staff 60 days of warning before conducting a round of layoffs.
If this occurs, it can be the ideal way to leave a company, as firms generally give the equivalent of 60 days of base pay.
Dogen said getting laid off can be a blessing in disguise, and warned disgruntled employees that being fired can have many more perks than quitting
He added that many people can look for further cash severance on top of their base, which can be one to three weeks of pay for every year served, as a ‘standard.’
Looking to the future, Dogen said getting laid off can be a blessing in disguise, and offers many more perks than quitting if you are disgruntled.
‘If you get laid off, you get unemployment benefits. You get a severance package, deferred comp, subsidized health care,’ he concluded.
‘You get tons of stuff that gives you a huge financial runway for your next endeavor.’