6 Ways to Help Clients Navigate Layoffs

We’ve all been there … a major life event strikes and stress quickly sets in.

If we reflect on our experiences during times of change, many things are running through our head, and sometimes we don’t know which direction to go.

Take a moment to think about a stressful time in your life.

Was your decision-making clouded by the stress you were feeling? Would you have made a different choice if you were in a different mindset?

It’s not surprising that thoughts and feelings can push people to follow a different path than the one they would have chosen if they had been more relaxed and calm during the decision-making process.

However, often the stress and anxiety of a situation can cause people to make emotionally charged decisions.

This is why the role of a financial professional is so important.

As financial professionals, we are the guides to help our clients make strategic decisions during these stressful times.

Many Americans are currently experiencing the stress of losing a job.

Since the beginning of the year, headlines have been filled with layoff announcements from large companies across the country.

This can be stressful, but it’s also an opportunity to highlight our value as financial professionals.

What You Offer

One of the ways we can highlight our value is by creating a structure for our clients to help them make decisions for their next financial steps.

This structure can be as simple as creating a discussion checklist with questions to help ensure they keep their financial goals moving forward.

Here are six discussion points.

1. Evaluate any severance packages.

How long will severance income last?

How long will health insurance last?

Are there any employer benefits that will be portable to the client upon separation of service?

2. Review health insurance options.

Will the client retain any health insurance benefits?

Can the client move to their spouse’s health insurance benefits?

Is COBRA the best option?

Are there any options on the Affordable Care Act public health insurance exchange to consider?

3. Talk about next steps for retirement plans—401(k), SIMPLE, SEP, 403(b), or defined contribution plans.

Employer plans will most likely be less expensive from a fee standpoint, but the plan may have limited investment options.