Coronavirus and your finances: What to do if you’re laid off – – KUSI

May 9, 2020

Posted: May 9, 2020

Updated: 1:16 PM

SAN DIEGO (KUSI) As of this week, over 30 million Americans have filed for unemployment. This economic upheaval is forcing many Americans, 45 million of which were slated to retire this year, to reevaluate their finances and navigate the new normal.

If you were planning on retiring this year or in the next few years and just got laid off due to the coronavirus, here are some tips from Steve Sexton, financial consultant and CEO of Sexton Advisory Group, on how to assess and improve your financial health:

Assess your financial situation if you recently got laid off and you were planning to retire soon, the first question I ask my clients is can you maintain your lifestyle without working? To figure this out, youll need to determine all sources of income, your source of health insurance until you qualify for Medicare, and any major expenses coming up, like a home renovation or a new car. Dont forget to take into account how inflation might impact your cash flow in the the next few years. Seek temporary employment If you cant maintain your lifestyle without working this means youll need to seek employment as soon as possible. Depending on your line of work, it may be a while until you get a full-time job in your industry and unemployment benefits only last for so long. In fact, assistance from the stimulus bill is expected to run out on July 31st, which means jobless workers would only get their state unemployment benefit after this date. This means youll need to look for temporary employment, even if it means considering jobs that are not in your skill set, but allow you to earn money now. Downsize and/or reduce your expenses Ive said this multiple times on previous segments, but its so important to eliminate any unnecessary spending right now. You can live with less, whether that means getting rid of your cable service, canceling that wine club membership, moving to a less expensive home or even choosing to share a car with your spouse especially since theres little need to drive over the next few months! Weigh your social security options most Americans cant rely on social security checks alone, but selecting the right benefits can make a big difference in the long run. There are 567 different ways to elect benefits, so make sure youre educated on which option will provide you with the highest income in your retirement. Consider low-risk investing theres no denying an astronomical amount of money has been lost in stocks in the past two months. If youre hoping to have a comfortable retirement, this means opting for low-risk investment options which may not offer big returns, but are safe. Work with a financial advisor to find out what options work best for you.

If youre looking for more guidance on what to do if youve recently been laid off, Im hosting a free webinar on Thursday, May 21st at 4 p.m. PST. For more info and/or to RSVP, go to RetireSmartMag.com.

More:
Coronavirus and your finances: What to do if you're laid off - - KUSI