MAKING THE RIGHT MOVES YOUR FIRST THIRTY DAYS AFTER A LAYOFF

It’s a story heard far too often: a company gets acquired and layoffs happen. Even after many years of loyalty, commitment, and skill, you too could be laid off. Unfortunately, situations like this are not uncommon.

Upon leaving the company, you may be provided with the typical types of compensation you’d expect from a layoff. You may receive a vacation payout, coaching, vested stock options, and severance. While the cash might grant you a modicum of control, it’s still very displacing.

Modera financial advisors in Boston

So, what should be your first decision, post-layoff? For many, it’s a vacation! But these same people say in hindsight that they should not have prioritized taking a vacation so shortly after being laid off. Here are some actions you can take in order to afford you some control and confidence over your future career.

1. Get Your Financial Planning House in Order

If you’re not generating employment income, you should prioritize speaking to a financial planner to come up with a plan on how to make your money last as long as possible and minimize your tax liability. Come prepared with cash flow and tax projections. Your cash flow has changed as a result of not having employer salary and additional employer incentives. Your money can evaporate quickly if you’re not careful. Your goal should be to find another position in a similar or higher compensation range, but things don’t always go to plan. If you don’t take the step of adjusting your cash flow or tax planning then you may pay the price.

2. Paint a Total Picture of Your Investment Analysis and Strategy

Just rolling over a 401(k) isn’t enough, but on the other end, seeing a commission-based financial advisor can potentially cause more harm than good. That person may be focused primarily on assets that would generate income under his management, and may not be comprehensive enough. Seeing a fee-only, fiduciary financial advisor is often the best step to take.

3. Diversify Your Identity

After spending such a long period of time with a company, part of your identity becomes entangled with your career. After separating, you may feel like a part of your identity has become meaningless.

Tim Ferriss, author of The Four Hour Work Week, says that we must diversify our identity in order to be happy. This means that you don’t have to pigeonhole yourself into one identity, like “Joe, the business development professional”. It can also mean “Joe, the tennis player”, or “Joe, the mentor”. Faceting your identity in this way makes it less impactful if one thing were to change.

4. Focus on Your Value Proposition

Updating your resume only takes you so far. To find the next step in your career, it’s important to focus on your value proposition. What can you bring to a new employer? How can your skills provide a return on investment for a new employer? Focus on your passions, because accepting a job that you’re not passionate about can lead to failure for lack of engagement. It’s also important to network effectively with people in your field, but not having a well fitted value proposition can make the difference between being hired and not.

Roadmap for Success

The month following a layoff is critical to getting your financial life back on track. Take action towards identifying your financial issues, assessing your needs going forward, and analyzing your investments. Contact a CFP®, who will look at your whole financial picture and provide a roadmap for success.

Article source: Modera financial advisors in Boston

Modera Wealth Management., LLC (“Modera”) is an SEC-registered investment advisor with places of business in Massachusetts, New Jersey, North Carolina, Georgia and Florida. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. SEC registration does not imply any level of skill or training.  For information pertaining to our registration status, fees and services, please contact us or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov) to obtain a copy of our disclosure statement set forth in Form ADV Part 2A. Please read the disclosure statement carefully before you invest or send money.

This article is limited to the dissemination of general information about Modera’s investment advisory and financial planning services that is not suitable for everyone. Nothing herein should be interpreted or construed as investment advice nor as legal, tax or accounting advice nor as personalized financial planning, tax planning or wealth management advice. For legal, tax and accounting-related matters, we recommend you seek the advice of a qualified attorney or accountant. This article is not a substitute for personalized investment or financial planning from Modera. There is no guarantee that the views and opinions expressed herein will come to pass, and the information herein should not be considered a solicitation to engage in a particular investment or financial planning strategy. The statements and opinions expressed in this article are subject to change without notice based on changes in the law and other conditions.

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