Help! I’m 55, Outsourced and Out of a Job. What Do I Do?

March 24, 2014

In today’s difficult employment market, many people in their 50’s suddenly find themselves outsourced and out of a job, perhaps when they were hitting their so-called “peak earning years” or when facing multi-whammy obligations of mortgages, college expenses and adult-children weddings .  Of course, this is also prime-time for ramping up savings for retirement, which may be less than 10-15 years away. What does one do when faced with suddenly having no working income, maybe some severance pay, and the daunting prospect of keeping your financial plan on course?   Here are some ideas:

  • Circle the wagons with your family.  Discuss the new financial realities and how everyone can help keep household expenses down.
  • Take stock of available resources and make a new budget.  Determine unemployment benefits and how long your severance pay (if available) might last.  Prioritized expenses, separate “needs” from “wants” and put off major purchases, if possible.
  • Make “Job Hunting” your new full-time job.  If out of the job market for awhile, consider hiring a consultant to help you with polishing your resume and job-search activities, (a lot has changed over recent years).
  • If you have children in college, know that financial aid is an “every-year” process.  Inform the college financial aid office of your new circumstances.  Chances are your student might qualify (more) aid in the following year(s), if not this year, if income matters haven’t improved.
  • Remember to take your employer retirement account with you via a qualified rollover to an IRA. Consider adjusting your asset allocation to a more conservative stance to avoid worry over market set-backs.
  • Revisit your financial plan and consider alternative goals and objectives if your job prospects and new saving realities don’t improve.

Wealth Management Resources can be helpful to those in this kind of difficult situation.  If you’ve been outsourced suddenly, give us a call for a free consultation to see how you can stay on-track toward your retirement and other near/long term goals.