Have you been laid off? Or considering retirement due to the covid pandemic?
This 7-Step Guide can help you decide your next move.
GOING THROUGH A LAYOFF DURING THE GLOBAL PANDEMIC CAN BE A VERY STRESSFUL, OVERWHELMING AND EMOTIONAL TIME.
If you've been laid off, you're certainly not alone. The Covid-19 pandemic created panic for businesses across the country, forcing many to shut their doors and lay off workers.
While the uncertainty of a layoff can feel like you've suddenly been saddled with an enormous burden, causing great stress.
But before you let the stresses of the Covid-19 pandemic get you down, consider these following 7 steps to helping you survive a layoff. These steps can help you determine if you need to find another job, or can you turn this into a blessing in disguise.
Where Do I Begin?
KeeP Calm START A PLAN
Whatever you do, don't panic! A layoff can be scary, and no company seems to be immune from the effects of this unfortunate Covid-19 pandemic.
Many employers will be forced to close their doors forever, 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, benefits replace roughly 40% to 45% of your weekly income. The maximum weeks (depending on your state), ranging from 12 to 26 weeks.
Under the CARES Act, qualified Pandemic Unemployment Assistance individuals are receiving an additional $600 weekly.
HEALTH INSURANCe (employer)
You'll likely lose your health insurance. You may be eligible for CORBRA, 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 receiving their Medicare coverage.
Now, is a good time to consider retirement. Insurance is only one of several issues to consider.
Ask us how.
PENSION & IRA DISTRIBUTIONS
Do you have a pension that can be rolled over or be taken as a lump-sum payment? Often times you may have limits as to when you can start receiving your pension and the income it provides.
It's noteworthy that your pension could be taken as a lump sum "now" through a rollover to an IRA.
Instead of waiting years to receive a future pension, the lump sum may provide more benefit if rolled over and then accessible.
question, DO YOU really WANT TO GO BACK TO WORK?
Knowing the best solution tremendously lowers the stress of a layoff, considering much of this stress stems from the unknown or undetermined variables.
Finally, once you've established your health care coverage and income. You're now prepared to decide on finding another gig, or simply retiring.
Unfortunately, there's not a one-size-fits-all solution and there may be tax implications to consider.
Don't wait to act! We've helped many others just like you, in the same situation as you. We'll 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!