Dealing with a Layoff
CHANGING CAREERS
PLANNING FOR LIFE
DEALING WITH A LAYOFF
The stress from losing a job can affect you psychologically and financially. Regardless of circumstances, there are ways to be proactive to limit the impact on you and your loved ones.
STEP 1: A DDRESS YOUR IMMEDIATE FINANCIAL PRIORITIES Negotiate a severance package. There may be wiggle room. Maintain calm and ask pertinent questions about how experience, tenure and job level factor into the payout. You may also be able to continue working as a part-time employee. Don’t be afraid to ask without getting aggressive. Determine what income you have in the form of severance, unemployment, a partner’s salary, rental or investment income, or Social Security. Ask your previous employer about your retirement accounts or pensions and how to access them if needed. And find out if you’ll be compensated for unused vacation or sick days. You’ll also want to file for unemployment benefits in the state where you were working. Identify expenses. Use credit card bills and bank
WHAT ABOUT HEALTH INSURANCE?
statements to find out how much you spend and in
Don’t forget to also ask about health benefits avail-
what categories. Then separate those into needs
able through COBRA to you and your family. Find
vs. wants. Nonessential expenses should be cut as
out if the employer will pay for coverage as part of
much as possible. You may need to make the hard
your severance package and how much it will cost
decision to forgo paying off debt in order to cover
for consideration of expenses moving forward.
essential expenses.
CHANGING CAREERS
PLANNING FOR LIFE
Bridge the gap between income and expenses. You don’t know how long you’ll be out of work, so you’ll need to tap assets that could help you pay for expenses. Start with your emergency fund and then move on to investments that have already been taxed. Remember that Roth IRA contributions may be withdrawn without tax penalties.* Your 401(k) should be last on the list, since it’ll be subject to a 20% withholding and you could pay an early withdrawal penalty if you’re younger than 55. Avoid using credit if you can.
EMERGENCY FUND
INVESTMENTS ALREADY TAXED
401(k)
LAST ON THE LIST
STEP 2: POUND THE PROVERBIAL PAVEMENT Continue to look for work. Update your resume as soon as possible. Seek job opportunities in your chosen field. If you were working in a struggling industry, consider searching for parttime employment in another area of interest. If possible, work to develop the skills needed for a career change. Keep in mind, that your professional skills may translate into other fields, so get creative with your job search.
TIP
Attend as many networking events as you can in areas that pique your interest. Use social media to reach out for job leads, and ask friends, family and former colleagues to keep you in mind should opportunities arise.
Carefully evaluate any job offer. As with any job change, look at the salary, the stability of the company, future growth prospects and the value of the benefits before accepting the position. You’ll also want to discuss the offer with your family to make sure it’s the right decision for all involved.
STEP 3: SECURE YOUR FINANCIAL FUTURE Work with your advisor to develop a recovery plan and reassess your goals. He or she may be able to help you find extra income and sell assets to put you in a more comfortable position during this time of transition. Your advisor can also help you come up with a plan to get back on track after you find another job. Start saving again as soon as you can. Even if you can only set aside a little each month, compounding can help that grow so you can replenish your emergency fund and re-establish your retirement savings. *Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.
CHANGING CAREERS
PLANNING FOR LIFE
NOTES
PAIN AND PANIC Losing a job takes a toll emotionally. Not only will your self-esteem take a hit, but you may feel a sense of injustice and take the layoff personally. However, it’s important to resist the urge to lash out at former co-workers. Attempt to leave the company with grace and integrity. When you’re calm, reach out to former managers with any questions and for references. But it may not be a good idea to jump directly into the job search before dealing with the psychological aftermath of a layoff. Rely on family and friends to support you during this time, and be willing to seek professional help.
WE’RE HERE TO HELP. As you contemplate your professional future, keep in mind that we’re available to help you assess how losing a job will impact your financial plan. We can serve as a sounding board to help you work through the transition and offer financial advice as you move on to the next step.
INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER 880 CARILLON PARKWAY // ST. PETERSBURG, FL 33716 // TOLL-FREE: 800.248.8863 // RAYMONDJAMES.COM ©2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC ©2014 Raymond James Financial Services, Inc., member FINRA/SIPC Raymond James® is a registered trademark of Raymond James Financial, Inc. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. 13-BDMKT-1255 CW 01/14
PLANNING FOR LIFE
DEALING WITH A LAYOFF
The stress from losing a job can affect you psychologically and financially. Regardless of circumstances, there are ways to be proactive to limit the impact on you and your loved ones.
STEP 1: A DDRESS YOUR IMMEDIATE FINANCIAL PRIORITIES Negotiate a severance package. There may be wiggle room. Maintain calm and ask pertinent questions about how experience, tenure and job level factor into the payout. You may also be able to continue working as a part-time employee. Don’t be afraid to ask without getting aggressive. Determine what income you have in the form of severance, unemployment, a partner’s salary, rental or investment income, or Social Security. Ask your previous employer about your retirement accounts or pensions and how to access them if needed. And find out if you’ll be compensated for unused vacation or sick days. You’ll also want to file for unemployment benefits in the state where you were working. Identify expenses. Use credit card bills and bank
WHAT ABOUT HEALTH INSURANCE?
statements to find out how much you spend and in
Don’t forget to also ask about health benefits avail-
what categories. Then separate those into needs
able through COBRA to you and your family. Find
vs. wants. Nonessential expenses should be cut as
out if the employer will pay for coverage as part of
much as possible. You may need to make the hard
your severance package and how much it will cost
decision to forgo paying off debt in order to cover
for consideration of expenses moving forward.
essential expenses.
CHANGING CAREERS
PLANNING FOR LIFE
Bridge the gap between income and expenses. You don’t know how long you’ll be out of work, so you’ll need to tap assets that could help you pay for expenses. Start with your emergency fund and then move on to investments that have already been taxed. Remember that Roth IRA contributions may be withdrawn without tax penalties.* Your 401(k) should be last on the list, since it’ll be subject to a 20% withholding and you could pay an early withdrawal penalty if you’re younger than 55. Avoid using credit if you can.
EMERGENCY FUND
INVESTMENTS ALREADY TAXED
401(k)
LAST ON THE LIST
STEP 2: POUND THE PROVERBIAL PAVEMENT Continue to look for work. Update your resume as soon as possible. Seek job opportunities in your chosen field. If you were working in a struggling industry, consider searching for parttime employment in another area of interest. If possible, work to develop the skills needed for a career change. Keep in mind, that your professional skills may translate into other fields, so get creative with your job search.
TIP
Attend as many networking events as you can in areas that pique your interest. Use social media to reach out for job leads, and ask friends, family and former colleagues to keep you in mind should opportunities arise.
Carefully evaluate any job offer. As with any job change, look at the salary, the stability of the company, future growth prospects and the value of the benefits before accepting the position. You’ll also want to discuss the offer with your family to make sure it’s the right decision for all involved.
STEP 3: SECURE YOUR FINANCIAL FUTURE Work with your advisor to develop a recovery plan and reassess your goals. He or she may be able to help you find extra income and sell assets to put you in a more comfortable position during this time of transition. Your advisor can also help you come up with a plan to get back on track after you find another job. Start saving again as soon as you can. Even if you can only set aside a little each month, compounding can help that grow so you can replenish your emergency fund and re-establish your retirement savings. *Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.
CHANGING CAREERS
PLANNING FOR LIFE
NOTES
PAIN AND PANIC Losing a job takes a toll emotionally. Not only will your self-esteem take a hit, but you may feel a sense of injustice and take the layoff personally. However, it’s important to resist the urge to lash out at former co-workers. Attempt to leave the company with grace and integrity. When you’re calm, reach out to former managers with any questions and for references. But it may not be a good idea to jump directly into the job search before dealing with the psychological aftermath of a layoff. Rely on family and friends to support you during this time, and be willing to seek professional help.
WE’RE HERE TO HELP. As you contemplate your professional future, keep in mind that we’re available to help you assess how losing a job will impact your financial plan. We can serve as a sounding board to help you work through the transition and offer financial advice as you move on to the next step.
INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER 880 CARILLON PARKWAY // ST. PETERSBURG, FL 33716 // TOLL-FREE: 800.248.8863 // RAYMONDJAMES.COM ©2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC ©2014 Raymond James Financial Services, Inc., member FINRA/SIPC Raymond James® is a registered trademark of Raymond James Financial, Inc. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. 13-BDMKT-1255 CW 01/14
