If You Lose Your Employment

Financial Planning Situation

Chris has been the Executive Vice President of Revenue at a fast growing tech startup. Due to the economic conditions, the startup had to downsize and Chris was let go from his job.

Here are the key questions he has:

  • This was the most ideal job for Chris and he is utterly devastated and feels like his whole life has turned upside down. He needs some emotional support to go through this period.
  • While things have been great at the startup, his lifestyle has silently been rising to adjust to his income. He needs to understand how he can make ends meet going forward.
  • He wants to prudently start thinking about his future and his retirement and put things in place to avoid a shock if this repeats in the future.
Tech sales job

These client stories are based on hypothetical, fictional situations.

Planning Process

As financial planners, we can provide valuable assistance in navigating the financial challenges that arise when you lose your job, especially when your family depends on your income. Here is how we can help you during this challenging time:

  • Assessment of Financial Situation: We can review your current financial situation, including your savings, assets, debts, and monthly expenses. This assessment will help you understand your financial position and identify areas that need immediate attention.
  • Budget Adjustment: Losing a job often requires adjustments to your budget. We can help you create a revised budget that aligns with your reduced income, ensuring that your essential needs are met while making the most of your resources.
  • Emergency Fund Utilization: If you have an emergency fund, we can guide you on how to strategically use these funds to cover essential expenses during your job transition.
  • Negotiating Severance: If applicable, we can help you navigate the negotiation of a severance package or other financial arrangements with your former employer.
  • Income Replacement Strategies: We can discuss potential strategies for replacing lost income, such as exploring new job opportunities, freelance work, temporary positions, or part-time work.
  • Debt Management: If you have outstanding debts, we can help you prioritize and manage your debt payments based on your new financial situation.
  • Health Insurance: Losing your job often means losing health insurance coverage. We can guide you through options for obtaining health insurance, such as COBRA, ACA plans, or other alternatives.
  • Retirement Account Considerations: If you had a retirement account through your previous job, we can help you explore options for rolling over the account to a new employer's plan or an individual retirement account (IRA).
  • Networking and Job Search: We can provide guidance on job search strategies, networking, resume building, and interview preparation to help you find new employment opportunities.
  • Temporary Assistance Programs: We can help you understand and access government assistance programs, such as unemployment benefits and other support services.
  • Short-Term Financial Goals: Reassess your short-term financial goals with our guidance, ensuring that they are realistic and achievable given your current circumstances.
  • Financial Psychology: Losing a job can be emotionally challenging. We can provide emotional support and help you manage any financial stress and anxiety.
  • New Job Compensation Evaluation: If you receive a job offer, we can help you evaluate the compensation package to ensure it aligns with your financial needs and goals.
  • Educational and Skill Development: If you are considering further education or skill development to enhance your employability, we can provide guidance on how to make these decisions strategically.
  • Transition to Self-Employment: If you are considering self-employment or starting your own business, we can help you assess the financial feasibility and develop a business plan.

Remember that we can tailor our advice to your unique situation and help you make informed decisions to secure your financial stability during this period of transition. Our support can be instrumental in helping you weather the challenges of job loss and move forward toward a more stable financial future.

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