Laid off and near retirement - what now?
Job losses have skyrocketed. Some are laid off and others are furloughed, hoping to return to their jobs when the lockdown ends. The number of first-time claims for unemployment insurance would have been inconceivable just a few weeks ago. Think about it. The jobless rate was at a 50-year low of 3.5% in February and the outlook was bright. Many who have unexpectedly lost a job become paralyzed by fear and don’t know where to turn. It’s a blow to one’s self-esteem, and we understand that unexpected obstacles have been put in your path.
What should you do if you are laid off? You will need a plan. The ideas I’m providing give a broad-based outline. Your situation is unique, and we are here to assist as you hammer out a strategy. Perhaps your job is secure, or you have retired, but please feel free to share our ideas with any friends or family members who have lost their job.
Next steps
Please recognize that you are not in this alone. We are here to assist you as you formulate a plan. Might you consider going back to work? Could you consult? Would you take a lower-paying, less stressful job? Is it time to tap your retirement accounts?
An unexpected layoff is difficult but need not be debilitating. It affects one’s self-worth and can lead to paralysis. Don’t let that happen to you. These questions and others will help you formulate a financial plan as you navigate an uncertain future.
The steps above are a broad overview. Putting together a plan is critical. It’s half the battle. You may find you are in a much better position than you realized, which will relieve an enormous amount of stress. Either way be proactive, not reactive.
I hope you’ve found this review to be helpful and educational. Let me emphasize again that it is my job to assist you. If you have any questions or would like to discuss any matters, please feel free to give me a call.
What should you do if you are laid off? You will need a plan. The ideas I’m providing give a broad-based outline. Your situation is unique, and we are here to assist as you hammer out a strategy. Perhaps your job is secure, or you have retired, but please feel free to share our ideas with any friends or family members who have lost their job.
- Assess your financial situation. What are your liquid assets outside retirement accounts? How long can these sustain your lifestyle? What are any outside sources of income you may have, whether yours or your spouse’s? Will you receive a severance and paid health insurance? All will play into your plan. -This is a recurring theme at our quarterly meetings, so it should be pretty easy.
- File for unemployment. Your company has paid into your state unemployment program and the federal government is supplementing with an additional $600 per week (https://www.investopedia.com/federal-pandemic-unemployment-compensation-fpuc-definition-4802039) through July 31 via Federal Pandemic Unemployment Compensation (FPUC) (https://govstatus.egov.com/ui-benefits/CARES ). You are out of work through no fault of your own. File! Receiving unemployment will provide you with additional income and cushion cash reserves.
- Come up with a realistic budget. Add your savings, unemployment, and any additional income, which will provide you with your total cash available over the next six months. Then, divide your monthly expenses into total cash. You may realize that you have greater resources than you had expected.
- Be sure to include health insurance in your calculations. Can you apply for Medicare?
- Consider your options for Social Security. Does it make sense to apply for Social Security?
Next steps
Please recognize that you are not in this alone. We are here to assist you as you formulate a plan. Might you consider going back to work? Could you consult? Would you take a lower-paying, less stressful job? Is it time to tap your retirement accounts?
An unexpected layoff is difficult but need not be debilitating. It affects one’s self-worth and can lead to paralysis. Don’t let that happen to you. These questions and others will help you formulate a financial plan as you navigate an uncertain future.
The steps above are a broad overview. Putting together a plan is critical. It’s half the battle. You may find you are in a much better position than you realized, which will relieve an enormous amount of stress. Either way be proactive, not reactive.
I hope you’ve found this review to be helpful and educational. Let me emphasize again that it is my job to assist you. If you have any questions or would like to discuss any matters, please feel free to give me a call.