[USER]

Looking for ideas – layoff coming…

I’m 48, with approx $1m total in brokerage / retirement accounts with Fidelity with an additional emergency fund of about $75k.

I just found out I’m being laid off in two weeks and will receive 2 months severance (for which I’m incredibly grateful).

I am sole support for family of 4 (kids are still young – 9 & 11) as well as the one who carries health insurance for my family.

I live in Phoenix and have about $600k equity in my home ($125k / 6 years remaining on mortgage).

One car payment of $450/month.

My kids are in expensive sports but otherwise we don’t have many big expenses.

We live in Phoenix which is about 2x more expensive than it was when we moved here 9 years ago.

This is my first time being laid off. I knew the layoff was coming and have been quietly searching for jobs for six months with zero luck whatsoever.

I’m going to hit the job search hard once the layoff is public but I likely need to get creative with earning money.

I’m looking for:

1) any legitimate ideas for earning $$ / reducing expenses, and

2) thoughts on what steps you would take right this minute to prepare for a worst case scenario (e.g. it takes a year+ to get a new job).

For instance do I remove 401k contribution immediately?? Tax considerations?

Side gigs that actually worked for you?

I’ve thought of selling Medicare Advantage insurance, consulting work, getting a teaching certification since I know teachers are in extremely high demand.

I’ve also thought about treating this like a trial FIRE scenario and figuring out a way to avoid the corporate rat race going forward.

I have an MBA and a very solid record of employment and performance.

I’m also burnt out so I wouldn’t mind a month or two of time off.

Any thoughts are welcome!

[Linda]

I was recently laid off as well. At first I struggled mentally and financially.

But then I adopted a different outlook, and that changed everything from my income to my attitude.

[Michele]

Just something I didn’t know: if you have a FSA (call to verify), you could use it all up the month you get laid off, even the amount you didn’t pay.

It’s prepaid in January by your company so you’re just paying it back, when they lay you off they forfeit the payback.

Get all the new glasses, contacts, dental, you need that month.

Also, read the fine print of your severance package.

There may be a multi-day recision period that only begins after you get the paperwork back in, so get the paperwork in asap, or you’ll be waiting longer.

Utilize the outplacement services and get your LinkedIn updated immediately only using dates on your last 10 years.

Andrew LeCivita on YouTube was VERY helpful!

[Joe]

You didn’t say how long that $75k fund would last without u having a job

Worst case plan on having enough cash or CDs for one years expenses
Raise cash in your brokerage account when you can.

Maybe a CD ladder

[Josh]

I would say use linked in and your social network.
Don’t just email blast resumes.

That is a non-strategy in the current job market.

You probably don’t want to sell your home…

but time is running out to cash in your equity position.

That extra tax free cash may come in very handy.

And rents in phx are coming down (same with prices but prices are lagging rents atm).

[Andrew]

Try to enjoy the decompression. Taking a paying job of any type is respectable to fulfill your familial responsibilities.

Use your skills and get an income first.

Then focus on the best source of income for longer term.

[Taylor]

Sell the home and fire to a lower cost of living market. Take this as blessing

[D’Angela]

My absolute advice is to find a salary job that pays with insurance. Dont take a risk from a position of stress.

You should try all of those suggestions out when you have an income not with $0 coming in.

It is harder to fet a role when you are not working. Get your resume out and get applying for remote work.

Peopke will say I am risk adverse but I say you can take chances from a more powerful.

position if you habeca job.

[Ruthy]

My 2 cents (not advise)
Sit down as a family and discuss strategies to cut back on expenses. It’s a good teaching moment for the kids too.

To see that your saving and investing will keep them afloat close to a year.

That’s great to pass along.

I’d try to keep the sports (my kids are athletes and it keeps them engaged and mentally healthy, so I get it).

But see if there’s any ways to scale back some.

If you talk to their clubs / trainers, sometimes they’ll do scholarships temporarily.

Given the equity in the home, and that you have deep roots there, I probably wouldn’t sell and move unless absolutely necessary.

I’d only keep the 401k to the match and the rest put it towards increasing that emergency fund.

You didn’t mention if your spouse works.

Can their income help to supplement?

Can they generate income if they aren’t currently employed?

Have someone experienced with resumes look at yours.

Why aren’t you getting interviews with that type of record?

Could be the resume.

I wish you the best.

[Sherie]

Can your spouse get a job? With your kids gearing up to go back to school?

[Madison]

Hey there! I also live in Phoenix. If you’d like to email me your resume I can take a look and see if I can make any introductions.

I have a large network.

Really hoping the best for ya.

It’ll work out one way or another! Keep at it!

[Jennifer]

Short term, call your state and find out if you are eligible for a healthcare plan for your kids (like Medicaid).

Many states go off of each months income, so if yours drops to zero you may be eligible.

[Heather]

What are your annual expenses? For my family, we’d be FIRE’d with your numbers but everyone has different wants/needs.

[Martin]

It does cost to become an insurance broker. But there is a company that can help you.

(Will DM info tomorrow) But you can partner with pharmacies and assist them with assisting their customers.

[Sarah]

To build our emergency fund, my husband and I both worked part time retail for one day a week and it brought in an extra $800 a month.

Is it possible for y’all to do something like that while you search for jobs?

Also, pay someone to write your resume for you, it’s not super expensive and they’ll give you tips on your cover letter (or write it) and your LinkedIn.

The job market isn’t what it used to be- follow people on instagram who make job interview recommendations as well.

I would be applying hard now- do not wait for the layoff to happen, ideally you’ll get into a new job before the severance is up and you can save that too.

[Jennifer]

I will tell you that I was laid off in 2013 and while that has left a lingering fear in the back of my mind, it was probably the greatest thing that ever happened in my career.

I looked for work for a year and then worked as a barista because I was needing some kind of money to get by.

Shortly after picking up that job, I accepted a contract position paying more than I knew I was worth and then a month later I got a position where I work now.

It was all mentally draining much of the time, but the layoff taught me that my work was being undervalued.

I was apparently worth 40% more to other companies.

All this is to say, keep your head up and turn this into a positive.

[Laura]

The kids are old enough that they don’t need a full time SAH parent. That is, to be blunt, a luxury you can’t afford right now.

If your spouse and you both get jobs, pretty much ANY job, combined with your emergency fund, etc., should be enough to keep you afloat for a very long time, and give you time to find the right job.

The kids activities might need to be scaled back but if spouse picks up a full time job it might not be necessary.

[Author]

Posts