NerdWallet: What to do if you get laid off: Take a deep breath, and make these 6 financial moves

by | Dec 28, 2022 | Stock Market

This article is reprinted by permission from NerdWallet.  When you’re laid off, you’re not going to be in the clearest state of mind to take care of your financial life. It can be challenging to do much of anything at first, says Pamela Capalad, a New York-based certified financial planner. “But you have to deal with the financial stuff.”

To safeguard your finances, consider the following first steps.Secure your human resources contact “Before you walk out the door — and companies may say you’re out the door within five minutes — make sure you have a contact,” says Andrea Kay, Cincinnati-based author of “Work’s a Bitch and Then You Make It Work,” and several other career books. Having a person to connect with at your former employer, like an HR pro, will be crucial if you need help rolling over your 401(k) retirement plan, or if there are any issues with delivery of your severance pay.Find out if there will be severance Your employer may or may not offer severance. Depending on the company and your state’s laws, this could include severance pay as well as any remaining paid time off you were entitled to. Like other forms of income, severance pay is subject to income tax. When the online payment company Stripe laid off about 14% of its staff on Nov. 3, it offered 14 weeks of severance, plus more for those with longer tenure. The severance package also included the 2022 annual bonus and pay for all unused paid time off. Severance might even be negotiable, experts say. Consider requesting additional severance, career services to help you find your next job, reimbursement for unused paid time off, an extension of health insurance coverage or immediate vesting for unvested stock options. Why would …

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