Amid the widespread rumors of Fortune 500 accounting department redundancies in Northern California and Southern California, employees must be aware of the necessary procedures to follow prior to their departure from Kaiser in 2022. A moment of retirement or, even worse, job loss is a tremendous one. Your thoughts are whirling and you have no idea how to proceed. Particularly for those with more than two decades of service, the brain receptors associated with the loss of a loved one are also impacted by job loss. Twenty years have passed since you were connected with Fortune 500; the relationship is now terminated.
Individuals experiencing employment loss or retirement experience the identical five stages of grief. Acceptance, denial, wrath, bargaining, and depression are all components of the framework that comprises our education to cope with job loss.
As the situation's actuality becomes more apparent, your emotions will become a jumble. Momentarily experiencing anger and the following moment being irritated can induce the desire to express one's frustrations. Bear in mind that impulsive behavior almost never results in a positive outcome and can exacerbate an already challenging situation.
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Consider the following items prior to your departure from Fortune 500:
1. Accommode yourself to a financial analysis (involve your spouse in this endeavor if possible). Currently could be an ideal time to contact a financial planner who is well-versed in the Fortune 500 plan. Do not conduct financial transactions with family or acquaintances. Friendships and cash do not combine. If you require a referral, please connect with me on LinkedIn.
2. Contact your credit union or bank and inquire about the possibility of establishing a home equity line of credit. Obtaining additional credit cards could be beneficial in establishing an emergency fund. Many of you have spent your entire lives employed, so you probably wouldn't consider doing this... However, obtaining credit becomes exceedingly difficult once you lose your job, so it is critical that you pursue this course of action.
3. If you were making 401(k) contributions, review them. We advise you to consult with a financial planner regarding whether you should discontinue your contributions entirely (in order to accumulate more immediate cash) or increase them for the remainder of your time on payroll. Your actions could have significant tax repercussions. One potential consequence of ceasing contributions is rising into a significantly higher tax classification as a result of severance pay, unemployment benefits, or other comparable factors.
4. A seldom-seen fact is that filing for unemployment benefits immediately does not always yield favorable results. Delaying the filing of an unemployment claim may prove advantageous, contingent upon the timing of your layoff and your financial circumstances, so that your unemployment payments are included in the subsequent tax year, a period during which your overall income is reduced as a result of your unemployment. You must contemplate an overwhelming number of circumstances prior to taking action on this. We advise consulting a retirement expert in order to discuss your available alternatives.
5. If you do not believe your termination was warranted, consult an attorney about your legal options. Irritated managers and coworkers may provide a momentary rush of adrenaline, but they are detrimental to your professional standing in the long run. Why now, after devoting so much time to fostering relationships, would you extinguish them?
6. Formulate a strategy to address the deficiencies in both your LinkedIn profile and resume. While seeking employment, having a job significantly facilitates the process of discovering one's next endeavor. Until you secure a permanent position, you could contemplate working as a consultant in the interim.
7. Determine what you will say, compile a go-to statement, and rehearse it until you are able to say it without shedding tears. Friends and acquaintances will inevitably inquire, and we presume you do not wish to erupt into tears or lash out each time the subject is brought up. Regardless of how terrible the situation may feel, it is imperative that you maintain your composure, conduct yourself in a professional manner, and avoid doing anything that could damage your reputation or integrity.
Added Fact:
In your retirement or job loss journey, it's important to remember that there can be unexpected tax implications. According to a recent Forbes article published on December 15, 2022, some retirement income sources may be taxed differently than you expect, potentially impacting your financial planning. It's advisable to consult with a tax professional who can provide guidance on how your retirement benefits, investments, and any severance pay might affect your tax situation. This proactive approach can help you make informed decisions and optimize your financial well-being during this transition.
Added Analogy:
Navigating retirement or facing job loss can be like embarking on a cross-country road trip. Just as you plan your route, it's essential to plan your financial journey carefully. Imagine your career as a long and winding highway, and at some point, you'll reach an exit ramp that leads to retirement or a job transition. Before you take that exit, you want to ensure your vehicle (your finances) is in top shape. You wouldn't set off without checking your fuel, tires, and map, right? Similarly, before leaving your Fortune 500 career, you should assess your financial readiness, seek expert advice like a seasoned traveler consulting a GPS, and have a well-prepared roadmap for your financial future. Avoid unexpected detours by considering the seven key factors outlined in the article, just as you would review your travel checklist before embarking on a significant journey. This way, your retirement or career transition will be a smoother and more enjoyable ride.
