Loss of Employment Checklist
Upon Notification
Once you receive notice of termination, get confirmation of how long your income will continue. This could include the date of your last paycheck, bonuses or expense reimbursements that are due, payout of accrued vacation, sick pay, or disability benefits. Your employer may offer a severance package or incentives if you remain employed until your final termination date. These could prolong your benefits and are worth considering. Having thorough and accurate information will allow you to make a better assessment about where you stand financially now and going forward.
Create a Transition Plan
Prior to your departure, it might be beneficial to consult with your Human Resources department while you still have access to company services and people available to answer your questions.
Find out how long your health insurance coverage will last and the options available for COBRA. You may also want to consider a Marketplace plan to cover the time until you have insurance through a new employer.
Determine how FSAs or HSAs will be administered after your termination date.
Determine the timing of unemployment compensation if you qualify.
Determine what options you have for any outstanding 401k loans.
Research and plan for any 72(t) distributions if needed (prior to 59 ½).
Request information on any pensions or other long-term benefits that will continue after termination.
If your company offers a conversion option for life or disability insurance, you may wish to consider converting what you need to an individual policy or looking for a new private policy to meet your needs.
Plan for any time off that you can use to extend or increase your final paycheck.
Take any time off that you will lose.
Sign up for career counselling, resume writing classes, and other job search assistance.
Consult Your Financial Advisor
A trusted financial advisor can be a valuable ally during this time. Some of the services they could provide are:
Review cash flow to find ways you can cover expenses until you are working again.
Prepare new retirement projections illustrating different income or expenses going forward.
Assess your health insurance options to determine the most economical and tax efficient means to address your healthcare needs.
Review your tax situation to determine if a lower income in a given tax year provides a good opportunity for a Roth IRA conversion, capturing portfolio capital gains, or pulling forward taxable income.
Assist with your 401k rollover and new investment allocation.
Help determine how much life insurance you will need to purchase when the employer plan is no longer available.
Partner with Professional Financial Management
The PFM retirement planning and investment team is on your side when a job loss or other unwelcome life event occurs. Let PFM look for opportunities to help you get back on track and gain peace of mind. Give us a call today to schedule a no-obligation meeting to learn more.