Reducing The Stress of a Job Loss

Job Loss is Stressful and Complicated

Because my practice has morphed these last years from helping families in divorce to helping those in any major transition (getting married, losing a spouse, etc.), I see a lot of job loss.  It can happen so fast and be completely unexpected. What to tackle first?

Typically, when you are walked from an employer, they are going to send you home with some paperwork or perform an exit interview on-site.  In high times of stress, one's brain cannot focus and concentrate.  Listen to your exit interview, take your paperwork and go home.  Please do not sign anything until you have had a chance to review it.  You do not need the stress and pressure of the HR Director peering over you and the immediate sense of shock of losing employment to make major decisions.

Instead, write down your questions, organize your thoughts and call HR later.  

HEALTH INSURANCE

We get a lot of questions about about health insurance.  Heck, I know many people that go to work only to obtain health insurance for their family.  This is a major concern. 

COBRA

By 1986 law, COBRA gives employees the right to continue coverage at the group premium rates. Typically, it is 100% of the premium (which might have been partially covered by the employer) and a 2% administration fee.  This is a viable option and can provide consistent coverage for a family while other options are researched.  The employer will send over coverage termination information and your insurance provider within 2 weeks will send you COBRA continuation options via the mail.

Healthcare.gov

Outside of open enrollment, one can obtain coverage due to job-loss.  This is important to research while exploring COBRA options.  It might be less expensive to obtain independent insurance or move to a short-term coverage policy rather than pay your COBRA premiums.  I have researched this enough times with clients to know that every one family is different.  

For example, a family with young children and frequent trips to the doctor, might decide to it advantageous to maintain consistency of coverage through COBRA.  For a single person with minor health issues, a short-term medical policy through healthcare.gov can be significant savings.  

I recently read a Motley Fool article that advised to research, research and do more research.  Compare plans, check prices, and check doctor participation depending on your attachment to your physician.

Make a list of the medications you take and what they'll cost under various plans. List services you expect to need, too, such as visits to mental health counselors. Then try to estimate how much each candidate plan will cost you. Don't be afraid of high-deductible plans. If you're not likely to spend a lot on healthcare, they offer a good way to keep costs down. (Source: https://www.fool.com/retirement/2017/06/04/read-this-before-you-buy-health-insurance.aspx)

BUDGET

We say we are going to analyze our spending but let's face it, we get busy.  This is the time now to put that thought to action.  Sit down and list out all known expenses.  I like to use receipts and an Excel spreadsheet - a legal pad will do!  Take some time to get a handle on what needs to be paid and how you can address your imminent bills. 

What is not acceptable is ignoring it.  You cannot ignore your bills because you feel bad.  They don't care.  You can control your spending and your stress will reduce, the more your stay on top of it.  If there are small bills that can wait to be paid, call the company and ask for small payment plan or an extension while you sort things out.

GET ORGANIZED

You are already disciplined.  You got up every day, got ready and went to work.  Continue to do so.  Work on your resume, research new job opportunities ad treat it like your full-time job.  I see the most success and the least down time with people that have a plan. 

Get up, get ready, research, submit resumes, make calls, and have coffee with people who can help you in your field.  You will be shocked at how much time it takes to get your next awesome role.  It needs your time, dedication and attention.

GET SUPPORT

There is no shame in losing a job.  It happens!  Talk to your friends, arrange to do things to keep you occupied (hikes, movie rentals, pot lucks) that do not strain your budget.  Seek support and ask for help.  Your friends want to help but they do not know how and they cannot read your mind.  

The more you can prepare for emergency, the better (like with an emergency savings account) but hey, this is life! and $h1t happens.  Breathe and know that you can do this, get better and succeed in another role wherever you may land.

Sources:

https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-compliance;

https://www.healthcare.gov/;

 

You Are Not Divorced?

You Are Not Divorced?

Lots of times people ask me why I do what I do for a living. “It is a hard job,” they say. I get a lot of comments on how depressing it must be. They assume I must have gone through some horrible divorce and that experience led me into my current profession.

I do chuckle and reply that I am a product of divorce. When I was little my parents divorced. It was your classic 1970 “war of the roses” marital break-up with my sister and I smack in the middle. My sister moved in with my dad and I stayed with my mom.

My mom had never managed finances and, at the time, she was given a lot of money. Instead of using budgets and planning properly for herself and us girls, she was really unfocused and, some would say, irresponsible. I remember having the lights turned off at times.

Post-divorce wealth management is not a traditional financial planning situation. I chose this specific market because post-divorce wealth management is professionally fulfilling and clients need the help. They know that we are not here to judge as they navigate through this trying time. We are here to help organize and create calm in a sea of confusion. We give them sound, honest, objective, but not always what they want to hear, advice to ensure they do not let their emotions run and ruin their finances.

I am in this line of financial planning because I have a passion for the client and believe in the work we do. I also know if clients have help with their finances, they can channel and use their energy in the right places to move forward and heal.

Years and many cases later, I continue to invest in this profession whether as a mediator or a collaborative financial professional. I can see how collaboration around finances and parenting plans benefits the children, the communication between the parents, and ultimately, the family.

I got into the business to help other people avoid the mistakes my mother made when I was a child, but I am still in it and more dedicated than ever because I see everyday how this work will help the next generation. We cannot change the fact that people divorce but we can change how they do it.

Jennifer Failla, CDFA™
Principal, Strada Wealth Management
Toll Free: 866.526.7098
Email: info@stradamanagement.com