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A couple weeks ago, the team I was part of was eliminated. My boss- and his boss-were also laid off, along with about 10 of us. The industry is facing significant headwinds, and our organization was no exception.
This is the first time in my life I’ve been laid off, and I never imagined finding myself in this situation. I’ve always believed in strong work ethic in creating and delivering value to both the organization and the customer.
Life happens, of course. I’m a big believer in the idea that when life gives you lemons, you make lemonade. I have no doubt I’ll land on my feet again – sooner rathern than later – and I’ve been actively looking for a new opportunity in the Greater Philadelphia area.
From a personal finance perspective, I’ve shifted into the cash-conservation mode, while aiming to minimize the disruption to my family. I’ve paused contributions to our two kids’ 529 plans, extra principal payment our mortage, and Roth IRA contributions for both my wife and myself.
I’d welcome your input: what other financial moves you think might be helpful for those of us navigating a layoff? Thank you.
I think you may be looking at this all a little backwards as the time to prepare for unemployment is when you’re employed, as the day you become unemployed with the exception of the items you mentioned there are few levers that can be pulled that will result in immediate financial relief.
Now that you are employed again you might want to hold off on making 529 or Roth contributions or extra principle payments, in order to build up your emergency fund to a little more than it was before. You might also want to look at all your other spending to eliminate the unnecessary and prune the necessary.
To stoke the imagination: I recently just cancelled my Collision & Comprehensive and before that switched internet providers.
Really good news. Congratulations on your new job.
A couple of random thoughts regarding taxes and benefits.
If you can contribute to a 2025 401(k) at your new employer be sure that the elective combined contributions at your old employer and your new employer do not exceed the 2025 maximum.
Ditto for HSA contributions. Watch out for employer HSA contributions from two employers plus your voluntary contributions exceeding the 2025 annual maximum.
If you have a need for life insurance your starting at a new employer may allow you to buy additional group term upon hire even if your health would otherwise subject you to pass medical underwriting.
Be sure to get your beneficiary designations on new retirement plans and group life insurance as you intend. You want to be sure to have the demographic information for all beneficiaries to be able to do so as soon as possible.
Best wishes for a happy landing.
Bill
If you have an HSA at your old company, you can transfer it to Fidelity. Fidelity doesn’t charge any administration fees.
Your new company is lucky to have you! Stay in touch.
Thank you, Bill!
Hi everyone. A quick update here: I am excited to start a new job in Philadelphia next Monday. Hopefully I will never experience another layoff in my life, as it was certainly a difficult event. I am grateful for many support I receive, including here at HD.com community. Thank you!