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6 Tips For Managing Your
Finances During A Career
Transition
Original article by Ruth Cameron
On average, people will change jobs 10
times during their lifetime.
Whatever your reason for switching jobs—
whether it be...
If you find yourself at a career crossroad, the
first thing you can do is take control of your
finances.
Here are some tip...
1. File For Unemployment Benefits
Immediately
To qualify for unemployment insurance, your
previous employer must confirm that you were
laid off.
Since each state has di...
2. Understand Your Severance
Package
Some companies allow you to negotiate a
severance package.
Make sure you get reimbursed for outstanding
vacation days and ...
3. Health Insurance
When you get laid off, your health insurance
may end immediately. One option is COBRA, a
federal program that allows you t...
The coverage period for the federal subsidy is
nine months and the eligible period for COBRA
is 18 months.
The recipient m...
4. Retirement Accounts
Consider rolling over eligible assets into a new
employer’s plan or into an IRA.
You need to check with your previous empl...
In addition, you should take into account any
potential tax consequences, as well as
expenses and sales charges and/or pen...
5. Reduce Spending And Avoid Debt
Take a look at your monthly expenses and see
here you can cut costs. Contact your credit
card company to see if you can re...
6. Take Inventory Of Your Assets
Find out exactly how much you have in stock
options, mutual funds, savings accounts,
checking accounts and retirement acco...
3 Things You Shouldn’t Do
1. Withdraw From Your 401(k)
Times may be tough, but resist the urge to
take money out of your 401(k). You will get hit
with income taxes and in some c...
2. Rely On A Home Equity Line Of
Credit (HELOC)
It will be extremely difficult to obtain a home
equity loan while unemployed.
But if you already have one, be careful when...
3. Abuse Your Credit Cards
It may be tempting to purchase everything with
your credit card, but that can be a mistake.
Most credit card companies wil...
Read The Original Article!
We hope you enjoyed this presentation!
Click here to read the original article by Ruth
Cameron ...
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Transcript of "6 tips for managing your finances during a career transition"

  1. 1. 6 Tips For Managing Your Finances During A Career Transition Original article by Ruth Cameron
  2. 2. On average, people will change jobs 10 times during their lifetime. Whatever your reason for switching jobs— whether it be a desire for a new career path or the result of a downsizing effort—it can be a stressful time.
  3. 3. If you find yourself at a career crossroad, the first thing you can do is take control of your finances. Here are some tips for managing your finances during a career transition...
  4. 4. 1. File For Unemployment Benefits Immediately
  5. 5. To qualify for unemployment insurance, your previous employer must confirm that you were laid off. Since each state has different eligibility requirements, you can visit the Department of Labor Web site (www.dol.gov) to obtain information regarding your state.
  6. 6. 2. Understand Your Severance Package
  7. 7. Some companies allow you to negotiate a severance package. Make sure you get reimbursed for outstanding vacation days and expenses. See if your stock options have vested in order to sell them.
  8. 8. 3. Health Insurance
  9. 9. When you get laid off, your health insurance may end immediately. One option is COBRA, a federal program that allows you to continue group plan coverage.
  10. 10. The coverage period for the federal subsidy is nine months and the eligible period for COBRA is 18 months. The recipient must meet certain requirements, for more information and eligibility requirements, please contact the Department of Labor at www.dol.gov.
  11. 11. 4. Retirement Accounts
  12. 12. Consider rolling over eligible assets into a new employer’s plan or into an IRA. You need to check with your previous employer regarding eligibility and retirement account options.
  13. 13. In addition, you should take into account any potential tax consequences, as well as expenses and sales charges and/or penalties for selling or buying investments before initiating a rollover.
  14. 14. 5. Reduce Spending And Avoid Debt
  15. 15. Take a look at your monthly expenses and see here you can cut costs. Contact your credit card company to see if you can reduce or defer your payments. You may have to give up such luxuries as cable TV, cell phone, or entertainment.
  16. 16. 6. Take Inventory Of Your Assets
  17. 17. Find out exactly how much you have in stock options, mutual funds, savings accounts, checking accounts and retirement accounts. This will help you find out exactly where you stand financially.
  18. 18. 3 Things You Shouldn’t Do
  19. 19. 1. Withdraw From Your 401(k)
  20. 20. Times may be tough, but resist the urge to take money out of your 401(k). You will get hit with income taxes and in some cases a 10% penalty.
  21. 21. 2. Rely On A Home Equity Line Of Credit (HELOC)
  22. 22. It will be extremely difficult to obtain a home equity loan while unemployed. But if you already have one, be careful when tapping into it. You could be without a job for a lengthy period of time.
  23. 23. 3. Abuse Your Credit Cards
  24. 24. It may be tempting to purchase everything with your credit card, but that can be a mistake. Most credit card companies will raise your interest rates if you miss one payment.
  25. 25. Read The Original Article! We hope you enjoyed this presentation! Click here to read the original article by Ruth Cameron on CAREEREALISM.com.
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