What to Do if You Get Laid Off
With unemployment rates at 3.5%, the fear of getting handed a pink slip has plummeted in most industries. But that doesn’t mean layoffs, downsizing, or mergers will never happen. And unfortunately job loss is something that can still happen, even during times of low unemployment rates.
Even if business is booming, it doesn’t hurt to have a plan in place should you ever face a layoff. Here are 8 tips on how to prepare.
1. Check Those Details
If you are laid off, the last thing you want to do is wade through piles of paperwork and make important decisions that will have a future financial impact. Unfortunately, this is a necessary step. Make sure you go through your HR paperwork with a fine-tooth comb and ask detailed questions about severance pay, remaining vacation and sick time, and unemployment insurance.
2. Strategize Your Employee Assets
You probably have a collection of assets from your years at your job, most likely in the form of retirement accounts or stock options. What are you going to do with them when you are no longer with your employer? Should you roll over your 401(k) or exercise your employee stock options? You need a plan, and a financial professional can help. Someone experienced with your field can help you decide if you should roll over your 401(k) or 403(b), explain how to make pension elections, and walk you through the ins and outs of stock plans.
3. Figure Out Healthcare
You may have several options available to you for health insurance, such as COBRA, private insurance, or Medicare. A knowledgeable financial professional can help you analyze your options to see what is best in your situation. They can also help you strategize the best way to pay the premiums, such as using IRA funds penalty-free in spite of your age.
4. Stay in the Game
Many people decide to retire when they are laid off. If that’s not your plan, you need to stay connected to those in your industry. It will be a lot easier to network and find your next job if you have current connections and active relationships to work off of.
Another way to improve your future job search is to use your extra time to hone your LinkedIn profile. According to a JobVite survey, 95% of recruiters use LinkedIn to search for candidates and 92% post jobs on LinkedIn. If you are going to be looking for a job, LinkedIn is essential. If you want to be competitive, you need to create a robust profile that is up to date and showcases your skills.
6. Reconsider Your Portfolio Risk
Review the risk level of your assets. If you are going to be spending some of your investments sooner than originally planned, you may need to get more conservative with your portfolio.
7. Decide When to Take Social Security
The timing of when you decide to claim your Social Security retirement benefits has a big impact on the amount you receive. The longer you wait, the greater your benefit will be. If you get laid off, you don’t want to rush to take Social Security if it’s not necessary.
8. Ask for Help
Being prepared for a job loss or transition might mean making adjustments to your financial plan. At Tranquility Path Investment Advisors, we’re committed to acting in your best interest. Always. To learn more, schedule an introductory meeting online or reach us at (732) 856-4324.
About Henry
Henry Zupko is president and founder at Tranquility Path Investment Advisors, an independent Registered Investment Advisor firm dedicated to putting their clients first, always. With over 30 years of experience, Henry sets the direction of the firm, manages, and in many cases personally interacts with clients to help develop financial strategies that sets them on a tranquil retirement path. He is passionate about being a trusted partner to his clients, developing long-lasting relationships so he can guide them through life’s milestones, twists, and turns. In all he does, Henry strives to make a positive impact on others and help change their lives for the better.
Henry is a CERTIFIED FINANCIAL PLANNER™ professional and holds an MBA from the University of Massachusetts and a bachelor’s degree in electrical engineering from the New Jersey Institute of Technology. Henry is a proud Eagle Scout who loves traveling the world and spoiling his grandchildren. To learn more about Henry, connect with him on LinkedIn.
