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Created: January 11, 2019
Modified: June 7, 2023

Being Between Jobs

What You’ll Learn:
Being between jobs can be a blessing or a curse. Discover the benefits and pitfalls associated with leaving your primary job for other ventures.

[2:47] –Being Between Jobs.

  • Perhaps you were recently laid off from a company, or perhaps you decided to quit for any number of reasons. No matter your circumstances, if you find yourself in an employment gap, there are some questions you need to consider.

[3:33] – Consider A New Career.  

  • If you’re between jobs, the first question you should ask yourself is whether you NEED to work more. If you decide to continue working, you might find this is your opportunity to finally explore that career path you’ve been considering for some time.

[4:45]  – The Benefits Of Self-Employment.    

  • Joel shares the story of an architect who left an established firm to start his own. As a result of the switch, he was able to find more joy in his work. Consider whether your side gig could become full-blown self-employment.

[4:38] – Where Will You Find Health Insurance?

  • Joel wrote a book called Forced To Retire. It tackles seven questions you need to answer if you’ve been forced out of a job, and health insurance is a big one. There are several options out there, but you’ll want to be sure you have strong health insurance coverage.

[7:38] – What Will You Do With Your 401(k)? 

  • If you have a 401(k) with a company, you are not the client of that 401(k). You’re merely a participant. If you want to be a direct client of the custodian of that money, most of the time you need to roll it out of that 401(k) and into an IRA. This is what’s called a 401(k) rollover, and it will leave you with more investing freedom.

[9:21] – Will You Get A Severance Package?

  • If the answer is yes, you’ll probably have the option to take a monthly payment or a lump sum payout. Consider which option is best for you as you’re between jobs.

[11:06] – What Tax Opportunities Will You Have?

  • Any time your income shifts up or down, you’re left with a tax planning opportunity. Take advantage of it, and maximize tax-saving strategies that will alleviate your tax burden.

[15:38] – The Problem With Rules Of Thumb.

  • Rules of thumb should be seen as a starting point. They’re meant to serve as a catalyst for discussion as you seek to develop a financial plan.

[16:23] – Addressing The Rule Of 100.

  • The rule of one hundred says if you take one hundred, and you subtract your age, you’ll be left with the percentage of your money that should be at risk of loss in the market. While it’s certainly a good thought, it’s not meant to be seen as an absolute truth. Use this rule to start a conversation on risk.

[18:29] – Addressing The 75 Percent Rule.

  • The 75 percent rule states that once you retire, you’ll need approximately 75 percent of the income you had when you were working to cover your living expenses. This is one rule that really needs to be ignored completely. Depending on your goals in retirement, you might actually need more or less money. Income planning is a crucial part of the overall retirement planning process.

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

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