| You may know an employee that you are thinking of laying-off, or a friend or family member that has been recently
laid-off. I know a number of people that have been out of work for over one year now. Their money is used up, their credit cards are maxed out, and they see no end in sight.
This could be anyone. We are all vulnerable to a potential loss of a job. We may even have to be the boss that has the hard job of telling someone that they are laid-off. It seems
sad to think that hard work no longer guarantees a job and income for the rest of your life.
 How can you help someone going through this traumatic experience? If you are like me, you try and do what you can to help others. While you may not be an expert in finance, you
can help point someone in the right direction.
If you know of anyone going through hard times, here is a little advice you can give that may help in the long run.
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If the person does not need the money right away, they may want to
negotiate to have severance pay, vacation pay, and unused sick pay added
to their retirement plans. (This money would not be immediately taxable to
the person.
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Leave money in the plan or transfer the money to a qualified IRA. (Make sure the check is never made out to the person-the check must be made out from one qualified plan to
another, otherwise penalties and taxes will be incurred as if the money was received.)
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Remind people of credit card insurance that they may have. Many credit cards offer insurance for the monthly credit card payment if the person is out of work or becomes
disabled. With high credit card balances this could really help the money crunch.
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Health Insurance is a big monthly expense. However, if an employer employs 20 or more workers, the workers can automatically become eligible for Consolidated Omnibus Budget
Reconciliation Act (COBRA). This allows workers to continue insurance under a companies group plan for up to 18 months following termination.
 You never know when you may be faced with the loss of a job, or have the nasty job of laying-off workers, however, you can give a little information to help someone make better
choices while they are going through a traumatic experience in their life. That's what friends and family are for, right? |
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