Financial Survival After A Job Loss
You’ve lost your job. The most important thing right now is prioritizing the elements of your current financial situation for the protection and lifestyle of your family. Here are some financial planning considerations you should review with your Financial Planner before making any short-term decisions.
- Communicate your situation to your family.
- Carefully review your severance package.
- Do not hesitate to negotiate for being paid longer, access to office space or job training.
Consider your long-term financial plan
- Budget thoughtfully for staying on course.
- List expenses in priority order.
- Defer major purchases.
- Reduce discretionary purchases.
- Negotiate your obligations and Annual Percentage Rate if you have any creditors.
- How else can you save money?
- Should your spouse change his/her withholding to a lower tax bracket?
- Restricted Stock Units and Stock Options
- Are either of these fully vested and is now a good time to cash out?
- Analyze cash-raising methods carefully
- Does anyone owe you money?
- Should you roll-over or borrow from your pension or retirement account?
- Re-assess your asset allocation due to possibility of income needs from assets.
- Avoid short-term or risky investment strategies.
Keep you and your family protected
- Health Insurance
- Review the benefits COBRA offers you.
- Are there alternatives to maintaining this coverage?
- Group Insurance
- Is any of this insurance portable?
- What are the costs of keeping your group insurance vs. getting coverage on your own?
- Disability Income Insurance
- If your policy is currently individually owned, is it portable?
- You should consider keeping this coverage because you won’t get a policy without a job.
- Life Insurance
- Review your policies to determine necessary coverage.
- Can and should you borrow against it?
- Could you skip a few years on this coverage?
- Unemployment Insurance
- Each state is different but assume you are eligible and file immediately
- Network with everyone you know to find a new job.
- Update your résumé and consider the career type you want to pursue.
- Is there something else you’d like to accomplish before finding a new job?
The information provided is not written or intended as specific tax or legal advice. Lenox Advisors, Inc., its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Lenox Advisors, Inc. (Lenox) is a wholly owned subsidiary of NFP Corp. (NFP), a financial services holding company, New York, NY. Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. 90 Park Ave, 17th Floor, New York, NY 10016, 212.536.6000. Fee based planning services are offered through Lenox Wealth Advisors, LLC (LWA), a registered investment adviser. Services will be referred by qualified representatives of MML Investors Services, LLC (MMLIS). LWA is a subsidiary of NFP and affiliated under common control with Lenox. Lenox, LWA and NFP are not subsidiaries or affiliates of MMLIS, or its affiliated companies. FP43 CRN202111-256077