Author Topic: What now?  (Read 1686 times)

ReadyToStash

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What now?
« on: April 01, 2015, 07:09:37 PM »
Hey all,

I smell layoffs around the corner at my job (I work in the oil industry). This is my first time experiencing such a thing, so it's a little daunting. Where does my 401(k) go? What about my health insurance?

I have a ton of questions so if anyone else has gone through this I'd love to hear how you handled it.

Other possibly relevant facts:
-I have enough liquid cash for 6 months at my current spending.
-I am a recent college grad (May 2014) and as such I'm terrified my lack of experience will cripple my job search.

Lookilu

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Re: What now?
« Reply #1 on: April 01, 2015, 07:48:18 PM »
First, I'm sorry to hear that this is something you're facing. It's never easy, but I've found that waiting is often the hardest part.
Now is a good time to polish up your resume and make certain that you have contact information for colleagues and supervisors you would like to call on for your references. Good on you for being so well prepared financially. You're in good shape to weather the coming storm. 

Your 401k will remain with the investment company that now holds it. You will have the opportunity to roll over your account to an IRA or leave it where it is. It's your choice.
As for your health insurance, it depends. You can continue coverage through COBRA or purchase your own. COBRA can be costly, so be sure to compare.
There's also the possibility of some coverage continuation as a part of a severance package. You'll have to wait and see on that count.

Good luck!

ReadyToStash

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Re: What now?
« Reply #2 on: April 02, 2015, 06:45:28 AM »
Thank you. Contact information is certainly something I might have forgotten!
I'm hoping I can stick around for at least a couple more months (thus building my buffer even more), but yeah, the not knowing is killer.

Retired To Win

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Re: What now?
« Reply #3 on: April 02, 2015, 06:51:45 AM »

I smell layoffs around the corner at my job (I work in the oil industry)... I have enough liquid cash for 6 months at my current spending...

Start putting a frugal scalpel to your living expenses now.  Don't wait until it's an even more stressful emergency to do so. 

Seriously consider segregating your expenses into (1) basic living expenses that you need to incur and discretionary spending that is optional. (This is what I do.) Then put all the optionals on hold until your situation has stabilized.  And add that unspent cash to your emergency reserve.

Good luck.