Jan 11, 2019
Being between jobs can be a blessing or a curse. Discover the
benefits and pitfalls associated with leaving your primary job for
What You'll Learn:
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
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
- 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
7:38 - What Will You Do With Your
- 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
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
- 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.
"You should have a custom retirement plan. A custom retirement
income plan. A custom investment plan. Not some cookie cutter plan
you've created by yourself." - Joel Johnson
ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti
For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/being-between-jobs/