Transition Planning for a Job Loss
Leveraging Resources…. Creating a New Future
Losing a job can feel like a roller coaster. On one hand you might experience guilt, anger, regret, and lack of self-esteem. On the other hand you might feel excitement and anticipation about the opportunity for a new career or life goal. In other words, you aren’t quite sure what to do, and in the meantime, you have to make some tough financial decisions to figure out how to get through each month.
To help you make wise financial choices after losing a job, you need a knowledgeable, understanding personal financial planner who specializes in financial planning services for layoffs. The Enrichment Group can guide you as you manage the financial transition after losing a job and make critical decisions that impact your family’s future.
They say when one door closes, another opens – and we want to help you wisely manage your current situation, and then prepare for your future opportunities.
Answering Tough Questions about Money Management after Losing a Job
After being laid off, it’s common to have some tough questions about money management and losing a job. As a part of our financial planning services for layoffs, we will help answer those questions:
- What about my lost benefits?
- How can I provide health, life and other insurances for my family and me?
- What do I do with my 401K or other retirement plan?
- How can I pay my bills?
- Should I find another job, or consider retirement?
- Will I ever be able to retire?
- What happens if I need to tap into my retirement savings early?
Recently Lost His Job
It is never easy to lose your job, but Robert has found it particularly disturbing since he hadn’t anticipated this layoff. Now he has some major financial decisions to make.
At age 56, he is afraid he might not find a comparable job unless he relocates, and he doesn’t want to move his family. Could he retire this young? He has a sizeable 401K plan, a lump sum pension and an equivalent of six months’ pay as a severance package, but little other savings. What are the tax implications of a severance package, anyway?
In the meantime, he also needs to make some important decisions about his insurance coverage and quickly figure out the best way to provide an income for his family.
Have you recently lost a job?
Contact the Enrichment Group for Advice >>
The Transition Process for Losing a Job
Our team has extensive experience helping clients make wise choices after losing a job. Our experienced and credentialed financial planners will guide you through our proven step-by-step Transition Process which has been used for more than 26 years to help clients create and maintain a stable financial future after a layoff.
Here’s what the process might look like if you’ve recently lost your job:
Step 1: Evaluate
Assess the Situation
Is there a severance or other source of income? Are you qualified for other jobs? What education or training might you need? Do you have enough savings to pay the bills for a few months? How can you best use what you know and who you know to create new opportunities?
Step 2: Organize
Categorize the Situation into Logical Groups
- Cash Flow: What do we need to do?
- New Job Search: What is your process?
- Unemployment Compensation: Are you qualified? How do you get it?
- Insurance: How can you replace your company benefits?
- Retirement Plans: Do you leave them there or do a rollover?
Step 3: Prioritize
Define what is Urgent and Important
Which decisions need to be made now, and which ones can wait until later?
Step 4: Stabilize
Deal with the Most Critical Issues
Have we made all of the critical decisions? Do you have enough cash to pay bills for a couple of months? Do you have health insurance and other protective mechanisms? Have you updated your resume?
Step 5: Insulate
Create a Decision-Free Zone
Postpone non-critical decisions, especially those that are irreversible. It’s important to be thinking clearly when you make these decisions.
Step 6: Financial Life Planning and Investment Management
Start Planning & Living Your Goals
What are your new career goals and dreams? How much do you need in a savings account, money market or CD’s to feel safe? How much cash flow will you need each month to make sure you can always pay your bills? How much insurance should you have? What types of insurance do you need? Is your estate plan current, accurate and adequate?
Can you begin to save again? What rate of return do you need to achieve your goals? How much risk can you tolerate? Will you need cash flow from your portfolio? What is an appropriate investment portfolio?
If you, or someone you know, has recently lost a job and could benefit from The Enrichment Group’s financial planning services for layoffs, please give us a call at (305) 274-1600 or contact us online today.