As a possible recession looms on the horizon, a number of companies have announced massive waves of layoffs — from Cryptocurrency exchange Coinbase, to real estate firms Compass and Redfin, to Tesla.
Losing your job and income is incredible disruptive, setting off a myriad of financial problems. To prevent yourself from spiraling too much, focus on the first steps you should take after a layoff.
- File to Collect Unemployment Benefits: Even if you received unemployment benefits earlier in the pandemic and are facing joblessness again, you may qualify for more aid. While the rules vary state to state, generally you will be eligible to open a new claim for partial payment if you’ve worked at least 15 weeks since last receiving unemployment. To qualify for a full benefit, most people will need to have been working for at least six months.
- Consider Health Insurance Options: As overwhelming as it may be, it’s important to look for coverage so you don’t find yourself without health insurance. Speak with someone in your company’s human resources department to understand when your coverage technically ends. Generally, newly laid off and uninsured people will have three routes to coverage to pick from: COBRA, the Affordable Care Act subsidized marketplace or a public plan such as Medicaid or Medicare.
- Protect Your Retirement Savings: Many people save for retirement through their job. If you had access to a 401(k) plan at the company from which you were laid off, you’ll need to decide what to do with that account. We have a free webinar dedicated to this issue, called “Should I Stay or Should I Go? An Overview of the Factors to Consider When Making Rollover Decisions” that you can watch here.
Additionally, our team of financial advisors are available to answer any questions you may have at this difficult time. You can schedule a complimentary consultation with them below.
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