Have you been laid off? Or considering retirement due to the economy?
This 7-Step Guide can help you decide your next move.
GOING THROUGH A LAYOFF OR PREPARING FOR RETIREMENT CAN BE A VERY STRESSFUL, OVERWHELMING, AND EMOTIONAL TIME.
If you have recently been laid off, you are certainly not alone. The current economic conditions for businesses across the country are forcing many employers to shut their doors and lay off workers.
The uncertainty of a layoff can feel like you have suddenly been saddled with an enormous burden, while causing great stress.
But before you let the stresses of getting laid off get you down. Consider these following 7-steps to help you survive a layoff or plan to retire. These steps can help you determine if you need to find another job, or turning this into a blessing in disguise.
Where Do I Begin?
KeeP Calm START A PLAN
Whatever you do, do not panic! A layoff can be scary, and no one is immune from the effects of the current economic downturn.
Many employers will be forced to close their doors, leaving you in the crossroads.
Ask yourself, "Are you prepared to retire?" or do you need to find a new job?
determine living expenses
When a layoff happens, you need to know the facts. Before you panic, simply figure out your living expenses. Figure out the income you'll need to survive for 6-9 months.
This is your "baseline" and will be used to determine your options going forward.
A simple way in determining this number is to review your bank statements.
INVENTORY YOUR FINANCIAL ASSETS
Next, create an inventory of the assets you have available, to meet the "baseline" in Step 2.
Assets are separated in two types: Today Money and Tomorrow Money.
Today Money - cash, savings, checking and any severance received.
Tomorrow Money - 401(k), investments, and assets such as real estate.
You may be eligible for unemployment.
However, on average, unemployment benefits replace roughly 40% to 45% of your weekly income.
The maximum weeks (depending on your state), range from 12 to 26 weeks.
HEALTH INSURANCe (employer)
You'll likely lose your health insurance. You may be eligible for COBRA, which provides eligible employees/dependents the option to continue coverage, for 18 to 36 months. The cost is usually higher because the employer is no longer cost sharing.
Through the CARES Act, those who loss their job due to the 2020 Coronavirus pandemic, qualify for a "special enrollment" period through the Federal Health Care Exchange.
HEALTH INSURANCe (private)
We're seeing more and more people wanting to retire, if only they could keep their medical coverage. However, for those under age 65, coverage can be expensive until they reach Medicare eligibility age.
Those 65+ and eligible for Medicare can simply RETIRE and opt to start receiving their Medicare coverage.
Now, is a good time to consider retirement. Health insurance is only one of several issues to consider.
Ask us how.
PENSION & IRA DISTRIBUTIONS
Do you have a retirement that can be rolled over or be taken as a lump-sum payment?
You may have limits as to when you can start receiving your pension and the income it provides.
Instead of waiting years to receive future pension payments, the lump sum may provide more benefit if rolled over and then making periodical withdrawals.
question, DO YOU really WANT TO GO BACK TO WORK?
Knowing the best solution can lower the stress of a layoff. Considering that much of the stress stems from the unknown or undetermined variables.
Finally, once you have considered your health care coverage and income requirements. You're now prepared to decide on either finding another gig, or simply retiring.
Unfortunately, there is not a one-size-fits-all solution, and there may be tax implications to consider.
Do not wait to act! We've helped many others just like you, in the same situation as you. We can help you develop a plan that work's best for you and your retirement goals.
IF YOU FIND YOURSELF FACING A LAYOFF, START A CHAT WITH US OR SCHEDULE A COMPLIMENTARY CONSULTATION TO DISCUSS YOUR STRATEGY TODAY.
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When I first learned of being terminated because of Covid-19, I was afraid. My agent helped me with a plan that allowed me to retire early. Thanks!