Job Transition

Strategies and thoughts to help yousurvive, and thrive after loss of employment

Presented by [Presenter’s Name]

Offered by the [Program Name] program located at

[Credit Union Name]

Job loss and other transitions

Temporary layoffTemporary layoff

Position is eliminatedPosition is eliminated

Store, plant or office is closedStore, plant or office is closed

Employer goes out-of-businessEmployer goes out-of-business

Reduction in income Reduction in income

You quitYou quit

Employment transitions impact:

YOU

Your Confidence

Your Future

Your Self-esteem

Your Friends

Your Family

Your Finances

So what can you do?

Take care of

Your FinancesYourself

Your Family

Take Care of What Matters Most

Yourself. Your family. Your finances.

Take care of yourself

Recognize the emotional impact of the situationRecognize the emotional impact of the situation

You lost more than just a job

Give yourself time to grieve what you have lostGive yourself time to grieve what you have lost

For some, a job loss can be just as stressful as a death in the family

Your paycheck

Your friends

Your identity

Taking care of yourself

– Focus on staying fit

– Stay positive

Stay on track physically and emotionallyStay on track physically and emotionally

Taking care of yourself

– See your doctor for help•Controlling your blood pressure•Dealing with depression or anxiety

– Job centers can offer offer guidance

– Seek out former mentors for encouragement

Ask for help and supportAsk for help and support

Take care of your family

– Your paycheck supports them– They feel your stress– Their futures might be very

different now– Even young children understand

something not good is happening• Those little ears hear everything

– From you…from the media…from their friends

• “How are we ever going to get through this?” – Be mindful of what you say

Recognize that this impacts them tooRecognize that this impacts them too

Take care of your family

Allow them to help youAllow them to help you

Ask them to cut expenses

Older kids can earn their own spending money

Take care of your family

Keep talkingKeep talking

– Keep them informed of your job hunt

– Allow them to vent and complain

Taking care of your family

Involve them in finding new solutions

“What if we have to move to a different city?”

“What can we change if my next job only pays half that

of my previous job?”

“I need to go back to school for two years. What can you do to

support this?”

The 5 Steps to Taking Care of Your Finances

Step 1 Inventory Your Income & Expenses

Step 2

Step 3

Step 4

Step 5

Cut Unnecessary Expenses

Manage Necessary Expenses

Manage Your Investments

Manage Your Risks

– You need to be brutally honest• Just because you say you can live without your daily Starbucks® doesn’t mean you really will

– Look out at least six months, maybe more•Will the property tax be due?

– Draw down some of your emergency funds to supplement your income

• What do you mean – no emergency fund?

Inventory Your Income & Expenses

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

Step 5Step 4Step 3Step 2Step 1

– Eliminate the “no-brainers” first•Vacations, gifts, dining out, big purchases•You can do these once the income starts again

– What is really necessary?•Cable or satellite•Subscriptions•Music lessons•House cleaner or gardener

Cut Unnecessary Expenses

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

– Pay the minimum•No extra payments on mortgage or other debts

– Talk with your lenders•They are more willing to work with you before you fall behind in your payments

– Consider selling non-essentials•The boat and Harley® can be replaced some other time

Manage Necessary Expenses

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

– Take special care with your 401(k) – Your retirement savings are sacred– Spend down other assets first

•Emergency fund•Some home equity•Sell non-essentials

– Don’t touch retirement accounts until:•You’ve eliminated all spending except food and shelter

The 5 Steps to Taking Care of Your Finances

Manage Your Investments

• IRA–“Borrow” for 60 days

• 401(k)– Leave with employer – Cash out– Transfer to new employer – Roll into an IRA

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

If you do have to spend retirement money

– You may need to work a few more years– You may need to save more aggressively once you return to work

– You may need to postpone major purchases•Make car last a few more years•Retirement/vacation house gets purchased later or smaller

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

Any employment transition may amend your personal retirement goals

These are challenges that you can overcome

Step 5Step 4Step 3Step 2Step 1

• Health insurance will be critical• Cobra gives you 18 months of coverage

– Can be very expensive– Absolutely necessary if there are any pre-existing

conditions in your family

• Individual plans are underwritten– Unlike group health insurance, you can be denied

coverage under an individually purchased plan

• Consider replacement work simply for the health insurance coverage

– If you have conditions in your family that would make getting individual coverage impossible

Manage Your Risks

The 5 Steps to Taking Care of Your Finances

– Does anyone depend on you for support?• If the answer is yes, purchase term life immediately

– Can be inexpensive if you are healthy and the term is relatively short

– If you are planning to remain out of the traditional corporate/business structure

• Purchase universal life insurance– Lasts for the rest of your life

– More expensive than term in the short term, but will ultimately pay a death benefit because it lasts the rest of your life

The 5 Steps to Taking Care of Your Finances

Step 5Step 4Step 3Step 2Step 1

Life Insurance Needs

Your new job

Finding a new position is your new full time job

Emotional aspect of looking for a new job

• Change is the new normal– We’re all going through tremendous change– If you don’t like the situation, wait a week and it’ll change again

• You have much to offer a new employer– You are not begging for a job, you are offering your valuable services

– Employers want good people like you

Emotional aspect of looking for a new job

• You are a successful person looking for a new position

–Being laid off was not your failure

• Manage any feelings of desperation–Recognize your feelings

• Ask for help and support from family and friends

Finding a new job is now your job

• Be a full time job seeker–Stay on task and on schedule–Set goals for every day, week and month–Use all of your resources (job centers, internet, networking, etc.)

• Connect with everyone–Call, e-mail and write notes–People really do want to help you–Connect often, but don’t be a pest

Finding a job is your new job

Ask for referrals“Do you know anyone I should/could contact?”

“Please share my contact information with others in your

company.”

Finding a job is your new job

Ask for “Informational Interviews”

“Can I meet with you for 20 minutes to get an

overview of your company?”

“I’m interested in your profession. Would you be

able to talk with me for 20 minutes?”

Getting back on trackRebuilding your finances and your life

Rebuilding your finances

• Replace health, life, disability insurance first– Group insurance from your new employer

• Some pre-existing conditions may not be covered for the first year

• Don’t drop your individual term life right away–Job may not work out and you’ll have to get new coverage again, which could cost more

• If your new employer doesn’t offer benefits–Work with employer to pay premiums pre-tax

»Except disability insurance – pay post tax

Rebuilding your finances

• Get current on all major sources of debt (i.e. mortgage, car, utilities)

– Contact your lenders• Set up re-payment schedule to get current• Don’t be afraid to ask for terms

– Can they write any of the back payments off?

– Can they work out a special interest rate?

– Refinance high interest debt, if possible• Will depend on how bad your credit rating was hit during the event

Rebuild your finances

• Rebuild emergency fund –Don’t invest this money – save it!

• Re-start retirement savings– Resist purchasing luxury items until you have replaced every penny of retirement dollars you spent during the employment event

• Roll your 401(k) into an IRA– Employer sponsored 401(k) plans

• Have limited investment choices• May have high fees• Are subject to freezes

– An individual IRA• Wide array of investment choices

– Including government insured accounts

• Are generally easier to administer– May have lower fees than a 401(k)

Rebuild your finances

• 3 Stage Workshop• Revisit work sheets• Complimentary consultation

Where do we go from here?

We’re here to help.

Stay Focused. Stay Positive. Stay Healthy.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members

Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members

FR020920-9408 © 2009 CUNA Mutual Group