Podcast Episode 347: Smart Planning During Times of Career Transition

When you find yourself amidst a career transition, be it by choice or circumstance, the path forward can seem fraught with financial uncertainty and healthcare coverage concerns. It’s a time when the right advice can make a world of difference, which is why we brought Jake Doser, CFP® onto the podcast to help navigate this stressful time.

Whether you’re considering a shift to a new industry, pondering semi-retirement, or stepping into the realm of self-employment, it’s essential to have a strategy that supports both wealth and health, and we’ll cover that in this episode.

For those pondering a career pivot or transitioning skills to a new industry, it’s important to avoiding emotional decision-making. Instead, the focus needs to be on creating a solid financial plan that ensures income needs are met throughout the transition. With an increasing trend of semi-retirement and consulting roles, highlighting that financial preparedness for the unexpected is crucial.

One of the most pressing issues for individuals in career transition is healthcare coverage, especially when job loss or early retirement looms. There are different options available, including COBRA, which can provide temporary continuation of employer-based health insurance, albeit at a higher cost. You can also utilize state programs like Access Health CT, which offer affordable alternatives based on income and medical needs.

The podcast also discusses the intricacies of financial planning and why streamlining and consolidating assets can provide more effective management. This is particularly vital when facing layoffs or considering early retirement. That’s why people will often consider a 401(k) rollover when they leave a job to help give them more flexibility and control over their investments.

For those receiving severance pay, we often provide caution. It’s tempting to view this money as an opportunity for leisure or unnecessary spending, but we’d warn against letting it disrupt your broader financial plan. That’s why we stress the importance of maintaining a disciplined approach to managing severance funds in alignment with your overall financial goals.

Whatever reason you have for leaving a job, there’s a need for effective planning during this time period. Having structure and support can help ease the stress that accompanies this time so reach out to a financial team like Johnson Brunetti to help you address each of these challenges head on.

Here’s some of what we discuss in this episode:

• The workforce changes we’ve seen in Connecticut over the past 18 months.

• The trends we’ve seen from our clients as it relates to work in retirement.

• Weighing the option to become self-employed.

• What health insurance options do you have when you’re in between jobs.

• Is this a good time to do a 401(k) rollover?