5 Essential Strategies for Financial Advisors to Support Clients After Job Loss

Experiencing a job loss can be overwhelming on many levels. During such uncertain times, it’s crucial to approach your financial situation with clarity and confidence. Here’s the advice I provide to my clients to help them regain control and plan their next steps effectively.

Key Insights

• Allow yourself time to process emotions such as anger, sadness, or anxiety triggered by job loss.
• Take a thorough inventory of your financial resources to understand how long you can sustain your essential expenses.
• Carefully examine your severance package and all applicable benefits to maximize available support.

Guidance for Clients

1. Conduct a Financial Inventory

Begin by listing all liquid assets including checking and savings accounts, money market funds, certificates of deposit, as well as any severance or bonus payments expected. Next, calculate your essential monthly expenses such as housing payments, utilities, and groceries. After that, consider discretionary spending like entertainment and travel. The objective is to understand your typical expenditure, not necessarily to reduce it immediately.

2. Evaluate Your Financial Runway

With a clear picture of your monthly spending and available cash, determine your financial runway — the number of months you can cover your living costs without additional income.

Industry Insight

Data from Crunchbase indicates that over 95,000 employees in U.S.-based tech companies faced layoffs in 2024, a notable decrease from 191,000 in 2023.

3. Apply for Unemployment Benefits Promptly

Filing for unemployment benefits as soon as possible ensures you receive the maximum financial assistance available. Review your severance details carefully to understand options related to equity, benefit portability, and accrued vacation payouts.

Legal Consideration

If your employment contract includes non-compete or non-solicitation clauses, consulting with a legal professional is advisable.

4. Begin Job Searching Early

It’s acceptable to take a short break before starting your job hunt, but avoid prolonged delays. Starting early helps prevent the pressure of accepting the first available offer out of necessity.

5. Comprehend Your Benefits

Some employer-sponsored benefits, such as medical, dental, and vision insurance, may be continued through COBRA. Disability and life insurance options might also be available. Although paying premiums independently can be daunting, maintaining critical coverage is essential. Typically, you have 60 days post-termination to decide on continuing your medical insurance, which is retroactive to your last day of employment.

Conclusion

Receiving a layoff notice can feel devastating, but by taking structured and informed steps, you can maintain financial stability. Prioritizing critical actions will provide breathing room and empower you to make thoughtful decisions about your future career path.

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