My Two Cents

My Two Cents

Kyle Meyer

be found at www.dinkytown.com. Select the Home Budget Analyzer. (You do not have to wait for a layoff to tackle this one either.)

Once you have a good sense of your available funds and your budgeted expenses, you can work on envisioning your “worst-case scenario.” Imagine six months without a job, then imagine 12. The idea behind this is to find your “breaking point” and plan for what you would do then. Prioritize your expenses and keep up with your debt — mortgage, car-payment and credit card debt can have unwelcome repercussions if ignored.

Consider rolling over your 401K into a Roth IRA — you may actually qualify now, if you did not before — or a regular IRA But do not succumb to the temptation of grabbing a few thousand in the transition. The penalties are simply not worth it. This is a good time to check with a certified financial planner to review your tax situation.

Moving ahead

With these nitty-gritty details sorted out, you can get busy thinking about what you want to do in the best of all possible worlds. The decisions you make here may have a profound impact on your life. It is important to take some time to inventory your skills, understand what you want to do and examine all your opportunities. It helps to have an objective, outside perspective to help you with this process either from a career coach or a reliable network of friends in and outside of your industry or trade group.

Layoffs inevitably mean a loss of control over one’s circumstances. By establishing an active financial plan, you can begin to take back some control by taking some prudent steps before a layoff, working methodically to prepare financially when one occurs and then figuring out your way forward.

Kyle Meyer is principal at Meyer Financial Planning LLC in Lincoln.