Safeguarding your finances in the aftermath of a layoff requires being proactive and taking certain timely steps.
In recent weeks, major companies have announced downsizing and cutbacks, includingWalmart,AppleandWayfair.
Close to half reported that they are dropping signing bonuses or rescinding job offers.
Initial unemployment claims are considered a general indicator of layoffs.
“We’ll see a lot of companies across a wide range of sectors letting people go.”
To suddenly learn that your position has been terminated is not only financially scary, it’s emotionally devastating.
Here’s some advice for securing your finances and landing on your feet after a layoff.
So, if you had a two-year run, you might receive up to four weeks of pay.
Before you sign a severance agreement, be sure to have any questions answered by your human resources department.
You mustapply for unemployment benefitsin the state where you worked, and the sooner you apply, the better.
It usually takes two to three weeks after submitting a claim to receive benefits.
There’s usually a 2% administration fee tacked onto that, as well.
It might be cheaper to be added to a partner’s group health insurance plan.
Insurance plans on theHealth Insurance Marketplaceare worth reviewing, too.
Read more:How to Get Health Insurance if You Lose Your Job
4.
Scrutinize nonfixed expenses
Losing your job immediately puts your variable expenses under a new light.
Do you need that monthly subscription or streaming service?
Can you shave $50 off your monthly food and drug store purchases by buying generic?
When you’re unemployed, more cash in the bank means less stress.
Cutting out these expenses takes only a few minutes.
I managed to save a couple hundred dollars per month with these brief phone calls.
While you’re at it, call your creditors.
These assistance programs may continue to be available and individual lenders may even offer their own unemployment protection programs.
You won’t lose the money, but you’ll need to make some decisions to protect your savings.
In the transition, it’s key to understand your options, follow instructions and mind certain deadlines.
You typically have three choices.
The first is to cash out the account.
You’ll also need to pay taxes on the earnings.
This, again, can trigger taxes and early withdrawal fees.
The third option is to roll over your savings to your new employer’s plan or anindividual retirement account.
This can offer more control over the account and the ability to continue contributing.
Read more:Lost Your Job?
Here’s What to Do With Your 401(k)
6.
But it can be wise to keep the door open and stay on good terms.
“Some companies were choosing to say, ‘Hey, we hate that we have to make this decision.
We want to keep you in our work ecosystem.’
So they continue to access that talent,” Olson told me on mypodcast in June.
Work in a struggling sector?
Consider extending your job search to new industries in need of new hires.
