Laid Off? Here Are Your Next Steps

Losing a job is never easy—whether you saw it coming or it came out of the blue. Beyond the immediate emotions of stress and uncertainty, a layoff raises big financial questions: What happens to my benefits? How do I manage my 401(k)? Will I be okay financially?

The truth is, while a layoff can feel like a setback, it can also be a turning point—an opportunity to reset your financial plan and move forward with clarity.

Step 1: Take a Breath and Assess Your Situation

It’s natural to feel pressure to make quick decisions, but not everything needs to happen immediately. Take a moment to understand your severance package, healthcare options, and any outplacement services your employer may provide. Read through the details carefully and, if possible, have a trusted advisor review them with you.

Step 2: Review Your Cash Flow and Emergency Fund

Knowing how long your emergency savings can cover expenses is critical. If you received severance, build that into your budget. This review helps you see how much runway you have, which reduces stress and gives you time to plan your next move.

Step 3: Understand Your Benefits and Retirement Accounts

Laid-off employees often have choices to make about 401(k)s, pensions, and stock options. Rolling over a 401(k) into an IRA might give you more flexibility and control, but the right move depends on your age, tax situation, and long-term goals. Don’t make these decisions lightly—getting advice here can save you thousands over time.

Step 4: Secure Healthcare Coverage

If you relied on your employer for health insurance, you’ll need to decide whether COBRA, a spouse’s plan, or marketplace coverage is the best fit. Missing deadlines can be costly, so don’t let this step slide.

Step 5: Revisit Your Long-Term Plan

A layoff might feel like a detour, but it doesn’t have to derail your retirement goals. In fact, it’s often the perfect moment to revisit your entire financial plan—clarifying your priorities, adjusting investments, and making sure you’re still on track.

Final Thoughts

Being laid off is a challenge, but it’s not the end of your financial story. With the right planning, you can turn uncertainty into confidence and move forward knowing you’re making the best decisions for your future.

At Heritage Wealth Management, we help professionals navigate transitions like these—evaluating severance packages, managing retirement accounts, and building a roadmap for what comes next. If you’ve recently experienced a layoff and want clarity about your financial future, we’re here to help.