Triage when you’re laid off

When companies need to merge or downsize, you can hear the insect buzz of layoffs in the wind. It used to be that the first hired would be the first fired, but the trend I’m seeing now is to lay off the employee over 50 years old, as the most expensive and shortest “useful life” to the company. Makes you kinda long for the days of seniority and unions. If that’s you, well, you can just retire early, no? These guys have hearts of gold.

I offer a dozen ideas, below. It’s a tough time for you, no doubt, but realize it was a business decision, not really having much to do with you. How do I know? Because I’m seeing it over and over, company after company.

  1. Negotiate hard for outplacement counseling. You want professional advice on shaping up your resume, looking your best, and planning out a battle strategy. If your company doesn’t offer it, or you can’t guilt them into it, invest the money in a career counselor for yourself. It’ll be one of the best $2,000 you ever spent on your career.
  2. Seek out every professional organization in your field, join them if possible, and attend meetings (and conferences if possible). You need to expand your network.
  3. Learn how to do a decent job on your LinkedIn Profile. Most people just park a profile, but you are going to need to work it. Look at all your connections’ connections and seek introductions.
  4. A lot of people keep Facebook for personal friends. You should still contact them to let them know you’re in the job market. Most people would love to help, but they have to KNOW.
  5. While I usually advocate paying off credit cards monthly, this may be the time to make minimum payments. You need to marshal your cash.
  6. Make every effort to live on severance and unemployment, and plan for one year. This may mean cutting expenses to the bone. It’s not forever.
  7. If you can’t cut, downsize—instead of eating out, downsize to coffee. Netflix instead of movies out. Vegetarian one night. You get the idea. The mantra is prudent and frugal (not cheap and desperate).
  8. Absolutely don’t beat yourself. I’ve seen plenty of clients in your position. This is just a corporate juggernaut, not your individual fault. Now, you make good business decisions to manage your career.
  9. Don’t cash out your IRA. However, if it looks like your income will be very low (evaluate towards the end of the year), this might be a great opportunity to convert a traditional IRA to a Roth.
  10. Find a part-time gig, teach a class, freelance, whatever you can think of to get a little money coming in. Don’t, however, decide to start a business which requires materials or equipment or anything that needs funding.
  11. Don’t do anything rash. Even if you have to sell your house, try to make the decisions when you’re calm—maybe you can rent the house temporarily.
  12. If you have children in college, notify the school immediately. They may be able to re-evaluate financial aid.

People over fifty do find jobs. It can take longer, and it may not be at as high a salary as your former position. You may need to revise your retirement plans.  It may not be quite the same future as you thought, but what ever is? You do have a future, and you can make revised plans for it.

 

 

 

Posted in Cash flow & Spending, Retirement Planning.

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