Skip to main content
Created: January 11, 2019
Modified: June 7, 2023

Being Between Jobs

[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 here 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.

Resources by Topic

Subscribe to Our YouTube Channel

Share

Related Resources

  • Podcast Episode 426: What Happens to Your 401(k) When You Change Jobs?

    Prefer to watch? Click here to watch and listen on YouTube. Staying at one company for 30 or 40 years is becoming increasingly rare. Today, more people are saving for retirement in multiple emp…
  • Podcast Episode 425: 5 Financial Lessons from Stevie Nicks

    Prefer to watch? Click here to watch and listen on YouTube. What can Stevie Nicks, legendary singer-songwriter and member of Fleetwood Mac, possibly teach you about retirement planning? As it t…
  • How Much Can I Contribute to an IRA?

    Are you contributing the maximum amount to your individual retirement account, or IRA? Many people aren’t taking full advantage of their contribution limits. That could mean missing out on valuabl…
  • Podcast Episode 424: 3 Tax Benefits of a Health Savings Account (HSA)

    Prefer to watch? Click here to watch and listen on YouTube. Health savings accounts (HSAs) are one of the most underrated tools in financial planning, especially from a tax savings standpoint. …
  • Podcast Episode 423: What Kind of Insurance Do I Need in Retirement?

    Prefer to watch? Click here to watch and listen on YouTube. Insurance is about preparing for the unexpected — whether it’s an accident, illness, natural disaster, or other costly event. Ultimat…
  • What Should I Do If I Win the Lottery?

    Winning the lottery, never working again, and having all your hopes and desires come true — for most people, that’s only a dream. But in the happenstance that you do hit the jackpot, what should y…
  • Podcast Episode 422: Traditional vs Roth IRA: Which Is Right for You?

    Prefer to watch? Click here to watch and listen on YouTube. At first glance, it may seem like you must choose one or the other: a traditional IRA or a Roth IRA. But the answer is often a combin…
  • Who Should Consider a Roth Conversion?

    Converting pre-tax funds into a Roth account can potentially reduce your tax burden in retirement. Roth IRAs offer unique benefits that differ from traditional tax-deferred accounts. While you …
  • Healthcare in Retirement: Frequently Asked Questions

    As you get closer to your retirement years, healthcare becomes a more pressing financial concern. How will you pay for coverage no longer provided by your employer? Which health insurance plan bes…
  • What Are Essential Financial Steps for the Last Quarter?

    If you can believe it, we’re entering the last quarter of the year. Time sure did fly by, but before 2025 officially ends, there are still a few financial matters to address. In this week’s Mon…
    Back to top
    • Laura H.
      Laura H. is a client of Johnson Brunetti and received no compensation for their statement.

      “Your corporate values and mission have stayed constant which we’d say is the primary reason we are so satisfied. We believe that mission should never change.”

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results. 

    • John L.
      John L. is a client of Johnson Brunetti and received no compensation for his statement.

      “We are extremely please with J&B. Referring back to our one word, Family, we trust your firm, advisors, and services as we would a member of the Family. Thank you for everything!”

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results. 

    • Joe D.
      Joe D. is a client of Johnson Brunetti and received no compensation for his statement.

      “Your model is working well, continue to keep your focus on your clients. The podcasts are an effective way of communicating information and real life stories. Your business is supporting your clients’ many different real life stories.”

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results. 

    • Jackie L.
      Jackie L. is a client of Johnson Brunetti and received no compensation for her statement.

      “I love how everyone in the company makes us feel. Like we are one big happy family. I wouldn’t change anything! “

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results.

    • Christine Q.
      Christine Q. is a client of Johnson Brunetti and received no compensation for her statement.

      “Your services are exemplary and greatly appreciated by my husband and myself to live out our retirement years feeling safe and secure. Thank you!”

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results. 

    • Barbara S.
      Barbara S. is a client of Johnson Brunetti and received no compensation for her statement.

      “We are very happy with Johnson Brunetti. It has really taken a load off our shoulders. Thank you.”

      Testimonials received in response to Johnson Brunetti survey conducted in 2024.  Please click here for a description of the survey and the overall results. 

      Our Locations
      Johnson Brunetti
      Welcome to Our New Website!
      Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
      Check out your new resource center, where everything can be organized by article type or topic
      Are you ready to speak with a financial advisor?
      Skip to content