When Your Google Chapter Changes: A Financial Checklist for Layoffs, Departures, and Career Pivots

A practical guide to severance, healthcare, Google stock, taxes, and what comes next.

By Don Hilario, CFP® | Hilpan Moxie Wealth Management

Leaving Google isn't always part of the plan.

Sometimes it's a layoff. Other times, you've been considering leaving for years. Or an opportunity comes along that makes you reconsider what you want from your career.

Whatever brings you to this point, there are some financial questions worth sorting through.

What happens to your Google stock? How long can you comfortably go without another paycheck? What about healthcare, your 401(k), or the taxes on your severance?

I've worked with Google employees and their families since 2008. And when someone tells me they're leaving Google, one of the first things I want to understand is what their household looks like financially.

What does it cost to live their life? How much cash do they have available? And what does the next year or two look like?

Those answers help us figure out what needs attention first.

Three numbers to know before making your next move: Your monthly household spending, available cash, and expected after-tax severance, if any. Together, they help us estimate how much financial runway you have.

Who this is for: Google employees navigating layoffs, voluntary departures, severance packages, or career transitions who want to understand their financial options before making their next move.

Who it isn't for: Employees primarily looking for a detailed strategy to retire early, manage a multimillion-dollar Google stock position, or determine their long-term withdrawal rate. Those topics are covered in my companion guide, Leaving Google: RSUs, Roth Conversions, and How Much Google Stock to Keep.

Key Takeaways

• Start with your household. Understand your spending, financial commitments, healthcare costs, and available cash before making major decisions.
• Know what you're leaving behind. Review severance, unvested RSUs, benefits, and retirement plan options. The timing of your departure can matter.
• Make decisions in the right order. Stock sales, 401(k) rollovers, and Roth conversions deserve a closer look, particularly when severance and other income fall in the same tax year.

The examples below are hypothetical and reflect general U.S. financial planning and tax principles as of November 2026.

1. Protect Your Household: Severance, Healthcare, and Cash Reserves

Short answer: Know what your household costs and how long your available cash can support it.

One of the first things I'd want to know is your burn rate.

By that, I mean what it costs to live your life month over month. Your mortgage, groceries, insurance, kids' activities, travel, and everything else that makes up your household spending.

I'm not asking you to strip your lifestyle down to the bare minimum. I want to understand what you're accustomed to spending and whether your available resources can support it.

Because when the Google paycheck stops, your household expenses don't necessarily stop with it.

Let's look at an example

Consider a hypothetical Google household:1. Household Finances2. Google Stock Compensation3. Severance Package

A $900,000 severance package is an extraordinary amount of money. But I want to distinguish the headline number from what the household can actually spend.

For illustration, let's assume 40% goes toward taxes, leaving $540,000.

Add the $120,000 already in cash, and we're looking at $660,000.

At $15,000 in monthly spending, that's approximately 44 months of financial runway.

Now let's account for college tuition.

If the remaining $150,000 isn't already included in that monthly spending figure, we should set it aside.

That leaves $510,000, or approximately 34 months of runway.

Notice that we haven't subtracted the outstanding mortgage or car loan balances. We're assuming those monthly payments are already part of the $15,000 household budget.

We also haven't counted the $75,000 in potentially forfeited RSUs as available cash.

And we still need to review healthcare costs and other expenses that could change after leaving Google.

So when someone tells me they're receiving a $900,000 severance package, I agree that's a substantial amount of money.

But I'd want to understand how much of it they'll actually receive, what their household needs, and how long that money is expected to last.

This example is hypothetical. A $900,000 severance package is unusually substantial and should not be considered representative of typical Google severance arrangements. The 60% after-tax assumption is illustrative, not an individualized tax projection. Actual proceeds and payment timing will vary.

What about healthcare?

If you're leaving Google, I'd want to confirm when your existing healthcare coverage ends.

For someone leaving in their 40s or 50s, Medicare generally isn't available yet.

That means reviewing COBRA, coverage through a spouse's employer, or an individual health insurance plan.

And it's not just the monthly premium. I'd want to compare deductibles, out-of-pocket costs, and enrollment deadlines.

If replacing your Google coverage adds another $1,000 or $2,000 a month to your household expenses, for example, that changes the runway calculation.

Let's account for it before making longer-term decisions.

What are you leaving behind?

Beyond severance, I'd want to review your final compensation, bonus eligibility, RSU vesting schedule, and employee benefits.

Consider the $100,000 in unvested RSUs from our example.

If $25,000 is scheduled to vest before your departure and $75,000 could be forfeited afterward, that's information worth having.

I'm not suggesting you stay at Google simply to collect another vest.

But if you have flexibility over your departure date, I'd want you to understand the financial implications before making that decision.

Review the actual terms of your severance agreement and equity awards. Those documents determine what you're entitled to receive.

2. Review Your Google Stock, 401(k), and Tax Opportunities

Short answer: Leaving Google can change your tax picture. Understand the timing before making investment and retirement account decisions.

Google compensation can include several moving parts.

You have your base salary, bonuses, RSUs vesting throughout the year, and potentially severance.

And although those amounts contribute to your overall compensation, they don't necessarily arrive at the same time or receive the same tax treatment.

So I'd want to look at the entire year before deciding what to sell, what to move, or what to convert.

Should you sell your Google stock?

"Don, should I sell my Google stock?"

I've heard that question quite a bit over the years.

My first reaction is often to ask what's behind it.

Are you buying a house? Funding college? Planning to live off your investments for the next two years? Or are you concerned about having too much of your wealth in one company?

I think those are reasonable things to consider.

And I understand the reluctance to sell shares that have appreciated substantially.

Who wants to pay capital gains taxes?

But I also want to understand the risk we're accepting by continuing to hold those shares.

If the money is needed for a specific purpose in the near future, do we want that purpose dependent on what Google stock does over the next six or twelve months?

I'd rather understand what the money is for, how much we need, and when we'll need it.

Then we can determine which shares to sell, how much, and whether spreading sales across tax years makes sense.

Sell for a reason, not a percentage.

Vested Google shares generally remain yours after departure, while unvested awards may be forfeited depending on their terms. Sales can be subject to trading restrictions, and the tax consequences depend on your cost basis, holding period, and circumstances.

For a deeper discussion of Google stock concentration, see my companion guide: https://www.hilpanmoxiewm.com/insights/leaving-google-rsus-roth-conversions-and-how-much-google-stock-to-keep/

Should you roll over your Google 401(k)?

You have several options to consider.

Depending on the plan's rules, you may be able to leave your 401(k) where it is, roll it into a new employer's plan, or move it directly into an IRA.

Before making that decision, I'd want to understand your age, investment options, fees, and whether you expect to access the money before age 59½.

Here's why.

If you separate from Google during or after the calendar year you turn 55, certain withdrawals from that employer's 401(k) may qualify for an exception to the usual 10% early-distribution penalty.

That particular exception generally doesn't apply to IRA withdrawals.

So if you're planning to use some of that money before age 59½, rolling the entire account into an IRA could eliminate an option worth preserving.

There's no reason to rush that decision without first reviewing your circumstances and the plan's provisions.

What about a Roth conversion?

Let's say you leave Google in October.

You've earned most of your salary for the year. Several RSU awards have vested. And now you're receiving severance.

That's potentially a substantial amount of taxable income.

If we add a Roth conversion in the same year, we're increasing that taxable income further.

I would want to compare that with the following year.

If you're no longer receiving the same salary, RSU income, or severance, your taxable income could be considerably lower.

That could create an opportunity to convert some of your pre-tax retirement savings into a Roth IRA at a more favorable tax rate.

But we'd need to run the numbers.

What's your projected income? How much room do we have within the tax bracket we're comfortable using? And where will the money come from to pay the conversion tax?

I'd also want to coordinate with your CPA before executing anything.

The goal isn't to convert as much as possible.

It's to make the right financial decision in the right tax year.

3. Prepare for What's Next: Retirement, Career Breaks, or Startups

Short answer: Start with what you want your next chapter to look like, then determine what it costs.

I've worked with Googlers who genuinely enjoy their careers and have no intention of leaving.

I've also worked with people who have reached a point where they'd like to slow down, pursue another opportunity, or spend more time with their families.

And then there are those whose departure wasn't their decision.

The financial planning will depend on what comes next.

If you're considering retirement

Let's say you're 45, you've spent 15 years at Google, and you've accumulated several million dollars.

You're thinking about retiring early.

Can you afford to?

Well, I'd want to know your burn rate.

A household spending $120,000 annually has very different financial needs from one spending $300,000 and climbing.

I'd also want to understand what makes up your wealth.

Is it diversified across investments and cash reserves? Or is a substantial portion tied to Google stock?

And if you're retiring in your 40s, we need to account for a potentially long retirement, healthcare costs, inflation, taxes, and market declines.

The amount you've accumulated matters. So does the life you want that money to support.

If you're joining a startup

Let's say you're leaving Google for a startup.

You're taking a lower salary in exchange for equity and the possibility of greater upside down the road.

I'd want to understand what that compensation actually looks like.

Can the cash salary support your household expenses?

What type of equity are you receiving? When does it vest? Are there exercise costs or tax obligations?

And under what circumstances could you eventually turn that equity into spendable cash?

Depending on the equity arrangement, there may be additional tax considerations involving stock options, alternative minimum tax, or other rules that warrant review with your CPA and attorney.

I'd also want to revisit the Google stock and other investments you've already accumulated.

If the new salary doesn't fully cover your expenses, can your existing resources responsibly supplement that income?

We can model that. But I wouldn't want to build a household budget around a future startup payout that hasn't happened.

If you're taking a career break

I've had conversations with Googlers who aren't ready to retire permanently. They want time away from work.

Six months. A year. Two years.

They've worked hard, saved consistently, and want to use some of that wealth to give themselves time.

I'd want to understand what that time looks like.

Are you traveling? Spending more time with your kids? Taking care of family? Exploring a new career?

And what will it cost?

Let's say your household spends $180,000 annually.

Two years would require approximately $360,000 before accounting for inflation, healthcare changes, or unexpected expenses.

If we plan for a third year of flexibility, that's $540,000 using the same annual spending assumption.

Now we can think about how to fund it.

I'd start by reviewing available cash and investments that aren't dependent on stock market performance.

If we need to sell Google shares to build those reserves, we can evaluate the tax consequences and timing.

The idea is to avoid putting money needed for next year's living expenses at unnecessary market risk.

And as your plans become clearer, we revisit the numbers.

If you return to big tech, your employment income changes the plan.

If you start your own business, we'll want to understand how much income it needs to generate and whether your investments can help support the transition.

I think that's part of the value of planning. We make decisions based on what we know today and adjust as life changes.

Before You Make Your Next Move

Short answer: Get your numbers, review your deadlines, and decide what needs attention first.

Before your last day

• Confirm your final compensation, severance terms, bonus eligibility, and RSU vesting dates.
• Find out when your healthcare coverage ends and what replacement options are available.
• Download permitted personal copies of compensation, equity, benefits, and tax records.

During your first 30 days

• Calculate your household burn rate, available cash, and financial runway.
• Review healthcare costs and your Google 401(k) options.
• Project your full-year income, including severance, RSUs, and other taxable income.

Over the next 90 days

• Review your Google stock concentration and whether any sales serve a specific financial purpose.
• Coordinate with your CPA on capital gains, estimated taxes, and potential Roth conversion opportunities.
• Update your financial plan based on whether you're retiring, taking a break, or returning to work.

Some benefits, equity, tax, and legal deadlines may require action sooner than these suggested checkpoints.

One Final Thought

One of my favorite things about working with families over many years is seeing how their priorities change.

Earlier in their careers, we're often talking about accumulating wealth. Maximizing retirement contributions. Managing RSUs. Saving for college.

Years later, the questions can look quite different.

Can I afford to leave Google? Do I need to keep working at this pace? What happens if I take a year off?

And for someone facing a layoff, the timeline can change overnight.

Regardless of how you arrived at this point, I'd want to understand what your household needs, what resources you have available, and what you're hoping to accomplish next.

From there, we can work through the decisions in the right order.

You've spent years building your wealth. I think it's worth taking the time to understand what it can do for you.

Related Reading

Leaving Google: RSUs, Roth Conversions, and How Much Google Stock to Keep

A companion guide for long-tenured Google employees evaluating work optionality, concentrated stock, and retirement tax planning.

About the Author

Don Hilario, CFP®, is the founder of Hilpan Moxie Wealth Management, LLC, an SEC-registered investment adviser based in Irvine, California. He has worked with Google employees and their families since 2008, helping them navigate concentrated stock, retirement planning, taxes, and major financial transitions.

Important Disclosures

This article is provided for general educational purposes only and is not individualized investment, tax, or legal advice. All financial examples are hypothetical and do not represent actual client experiences or guaranteed outcomes.

The severance and runway illustrations use simplified assumptions, including a hypothetical 60% after-tax severance amount, constant household spending, and college tuition treated separately from monthly expenses. The $900,000 gross severance example is not intended to represent a typical Google severance package. Actual outcomes may differ materially.

Compensation, severance, equity awards, healthcare benefits, and retirement plan provisions vary by individual circumstances, applicable agreements, and plan rules. Tax laws and benefits may change. Consult qualified tax, legal, and benefits professionals before making decisions.

Investing involves risk, including possible loss of principal. Diversification and fixed-income strategies do not guarantee profits, prevent losses, or ensure that income needs will be met.

References to Google do not imply affiliation with or endorsement by Google. Hilpan Moxie Wealth Management, LLC is an SEC-registered investment adviser. Registration does not imply any particular level of skill or training.