March 3, 2015

Money Decisions When You Lose Your Job



Tara S. Bernard explains in a New York Times article what to do if you lose your job. Following is a brief summary; check out the full article at: http://www.nytimes.com/2015/02/28/your-money/making-financial-decisions-when-you-lose-your-job.html  Initial Analysis. If you are being laid off (or contemplating a sweetened package encouraging you to leave), the most pressing issues are obviously income-related: Does any extra money let you retire a few years ahead of schedule, perhaps with some part-time work? Or does it offer enough so you have a cushion until you find your next job? How much income do you need to live right now? And how long can you go, given your severance?
See article for details on these topics: Maximize Tax Savings, Severance, Pensions, 401(K), Unemployment…
Health Insurance: state and federal health insurance exchanges may offer less expensive options than Cobra.
Other Insurance
GET HELP If there were ever a time to seek professional help — an accountant, an unbiased financial planner or both — this is it. This is doubly true for people for whom retirement is on the horizon. Work only with planners who charge for their advice and who are legally required to put your interests first. Mistakes can be costly — and permanent — particularly if you end up working with professionals who invest your money in products, like fixed indexed annuities, that offer them lucrative commissions or kickbacks at your expense.

1 comment:

  1. I have been trying to help my sister because she has lost her job and it really affected her motivation and life goals. I want to set her up with a financial planner so that she can get a few things straightened out and in order. Hopefully we will be able to get her back on track and get her set financially. I really hope that she can get another job soon as well.

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