11/1: Navigating Job Changes and Layoffs

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Episode Transcript

Speaker 1 (00:00):
Hello, and welcome to Money Talks with Terry Sandbold and
Blake Sandvold, and we're in Q four guys, and you
picked a topic that sadly might affect a lot of
our audience right now.

Speaker 2 (00:12):
Yeah, it's quite timely right now.

Speaker 3 (00:13):
And one of the things that we want to make
sure is we stay on top of everything on your behalf.
So when you think about what's going on in the
world right now, this show should apply to a lot
of people in many different ways. So we're talking about
navigating job changes and layoffs. What you need to know
for financial stability, but it might expand even out more

(00:37):
than that, meaning if you're preparing for retirement, that is
a job change, meaning that you're going from your career
to your retirement career.

Speaker 2 (00:45):
So to speak.

Speaker 1 (00:46):
That's such a good point.

Speaker 3 (00:47):
And you might have ten twenty thirty years there, so
we want to make sure you're doing that correctly and
efficiently for you. But if you've been watching the news,
one of the things that has been popping up in
the last few days, of course, is a lot of
companies are doing layoffs, are dealing with layoffs, and we
hope that you are not one of them. But if
you are, this show will pertain to you as well,

(01:10):
and there's many things you can do to take control
of your future by going through We're going to go
through kind of a checklist of a variety of things
today what to do. So today it's talking about navigating
through job changes and layoffs, and job changes doesn't mean
that you're done with your job. It could be that
you're finding a new position as well, so that can

(01:32):
create new opportunities for you and new options on what
to do next. Right now, we're an employee benefit enrollment
time for people too, so that's another piece that a
lot of people should consider to really dig into those,
really look at those and make sure that they're doing
what's efficient for them. But it is a good time
to review all of your benefits, all of your investments,

(01:54):
and make sure that you are on top of your
financial game.

Speaker 4 (01:59):
Yeah, you know, I think it is a big thing
right now, and you know it's a Terry's point where
sometimes the job changes can lead to retirements.

Speaker 5 (02:07):
We had a seminar gosh was it running a month
ago already?

Speaker 4 (02:12):
Yeah, kind of a blur, but you know that was
actually a large part that we talked about in there.
Is you know, what what are catalysts for retirements and
you know, average age that people think they're going to
retire at versus what they do retire at. And some
are good reasons, some are bad reasons. But you know,
one common one is is an early uh uh being
laid off from a company, or a sabbatical that kind

(02:35):
of gets extended, or things of that nature.

Speaker 5 (02:37):
And I think in this world right now, a lot
of people are thinking about that.

Speaker 4 (02:41):
I know, we we've seen that with a number of
clients already where you know they're having you know, either
offers for an early retirements or you know, if there
there are some affected by layoffs, it's a really important
time to look at your options. And you know, we've
even had some that have looked in and you know,
we think some of these layoffs could be due to

(03:03):
long term structural changes in the economy due to AI,
and you know, what are what are ways that we
should think about planning differently in maybe a different labor
market over the next decade two decades. And I think
that's actually a really great question to be asking. So
I think this, uh, you know, this is the right
time to look for information and make sure that you

(03:26):
are are properly valuating a plan because the labor market
has changed from where it was three four years ago.

Speaker 1 (03:33):
You know, one of the more interesting takes I've heard
on the potential effects of AI would be that the
larger corporations will leverage it faster and first, but it
will give a lot of the smaller and medium sized
companies a better shot at more talent than they, you know,
would normally have been passed over for. Do you agree
with that, guys, Yeah, I.

Speaker 5 (03:51):
Think that is an interesting take.

Speaker 4 (03:53):
I definitely agree that the larger companies, they're they're able
to have that capital expenditure to to embrace it quicker.
So I think, you know, you're seeing that for larger
platforms they can they can do and leverage that. You know,
an easy example is, you know, JP Morgan came out
and said for two billion dollars in expenses that they
were putting into AI, uh, they pretty much nearly immediately

(04:16):
had that as a cost savings as well. So you know,
I think companies are going to be figuring that out.
You know, I think as well, from a labor standpoint,
there's dramatic hiring during remote work during COVID and I
think there's kind of a resettling period on what what
is that true run rate for some of the companies.
But yeah, you know, I think that is probably an

(04:38):
interesting take to say some of the smaller mid sized
companies there there could be a talent uptick in some
of them. And you know, for for ones that I
think embrace having a personal aspect to business plus efficiency
from AI, you know, there there there could be a
be an opportunity set there. So uh, you know, it's

(04:59):
definitely it's something we're all going to have to embrace
different ways. But I think, you know, being a small
business like ours, small relative to some of the national companies,
you know, focusing on the individual side I think is
increasingly important, especially as we run more tech automation on

(05:20):
the back end.

Speaker 3 (05:21):
Yes, yeah, so we are hiring and we just recently
have hired some individuals. So in our business, we feel
that it's always going to be a people business because
you're making very personable decisions on your financial future. Yeah,
you can do things electronically, you can look up things
on the internet, et cetera and try to formulate what

(05:42):
to do next, but a lot of people can do
some of that when they have the extra time to
try to do that. Most people don't have the extra
time to do that. So I always use this expression
at the end of the day, and you've got fifteen
minutes left at the end of your day because you
got the kids down, you're trying to wind down, and oh,

(06:02):
I should look at my financial future and maybe I
should get that sorted out before I go to bed.

Speaker 2 (06:07):
It doesn't work quite that way.

Speaker 3 (06:08):
So there's a lot more to it, a lot of research,
a lot of analysis, looking at your personal strategies and goals, priorities,
and at sample financial group. We've been doing this since
nineteen eighty six, and I think the thing that's really
important is you don't have to take this on by yourself.
There is a team approach that can really help you
with your financial futures. So I feel our business is

(06:33):
never going to go away. You can have access online
to information, but what do you do with the information
is key, So I think looking at that working with somebody.
We always talk about having a team that can help you,
whether it's a financial services team like ours, attorney firm
to help you with wills and trusts and documents those

(06:54):
types of things, and ask you questions, not just fill
out of form.

Speaker 2 (06:59):
Some of that's trying to be done.

Speaker 3 (07:00):
Online as well, but the questions don't get asked properly
and in depth in that case too, or with taxes too.
There's many things that do change and it's hard for
each individual to keep up with all of the changes
in the world. So having a team of those three
I guess you say, legs to the stool is very
very important. And today we want to talk about what

(07:22):
is ever changing right now, and that is job changes, layoffs, retirements.
This is time of year when a lot of people
do retire or plans retire at the beginning of the year.
But as you know, Kelly, we've had some interesting stories
about how much time people take before they retire to

(07:42):
do what we do. Oh yeah, it can be days,
it can be week. The ones that do succeed start
earlier than others, meaning that they're diligent about it. They
look at it over time, They work with us on
a plan, implement the plan, keep fine tuning in it,
keep looking towards the future, and then you have control
of when you're going to retire, and ideally have control

(08:05):
of how much money you do have a retirement, and
it doesn't stop there like we talk about it too,
because you may be like in retirement as long as
you are in your career. So are you ready to
create your own paycheck for the rest of your life.
It's a very serious question and if you kind of
are squirming in the chair with the answer, that's not

(08:28):
the way to feel all the way throughout retirement. So
today we're talking about navigating through job changes and layoffs.
What you need to know for financial stability. We do
have a Money Talks mailer of the Week that goes
along with us today.

Speaker 2 (08:41):
It's a really good one.

Speaker 3 (08:42):
It's entitled Retirement Strategies after a job Loss and it'll
talk about some of the key things we'll talk about today.
But it's a good checklist for you to have in
your back pocket, whether you're thinking about retirement now or
being on the list, so to speak, that are you
going to be laid off? Are you going to be downsized?

(09:03):
Are you prepared? This is a very important piece. Get
your copy, give us a call at nine to five
two five four four two eight three seven. You can
request the Moneytoks Mailer of the Week online at sandviledefg
dot com as well.

Speaker 1 (09:17):
Absolutely, So real quick guys, before we take a break,
we're going to run through different strategies today after a
layoff or a job lost and just hit some of
the highlights for a little preview. But when we come back.

Speaker 4 (09:30):
Yeah, so big things will end up being you know,
what types of decisions do you need to make, you know,
considering employer plans, what type of benefits do we need
to look at benefit changes? You know, in general, this
is this is enrollment type for people as well. You know,
reevaluating expenses, what are fixed expenses, what are discretionary expenses?

(09:54):
I mean those are just a key couple of takeaways.
And you know, again this is a time as well
talk about planning from a holistic standpoint. What are the
true big picture goals that you're looking at, how do
the finances match up with that, and why you have
a plan in place. So this is a good time
as well to have you be conscientious of how you're invested.

(10:16):
Having to diversified portfolio is designed to buffer through life
unexpected events, which this could be a large one for
a lot of people.

Speaker 1 (10:23):
Absolutely, and a lot of people wouldn't necessarily think the
first person to call would be a financial services firm.
But in fact, we're going to tell you why that's
exactly what you should do. In just a moment, you're

(10:43):
listening to Money Talks with Terry Sandbold and Blake Sandbold,
and today we're talking about what to do after a
job loss and retirement strategies that go along with that. Terry,
so much to consider really.

Speaker 2 (10:55):
Oh absolutely.

Speaker 3 (10:56):
Blake's got a list of some of the trends that
are out there in statistics if you want to run
through those Blake real quick.

Speaker 4 (11:01):
Yeah, And so this is kind of interesting. This is
something we've looked at the last number of years. And
I was actually at a speech or a conference and
Malcolm Gladwell was one of the speakers, oh years ago.
Oh well, he's a great speaker, by the way. Yeah,
and you know, he was talking about how some of
his younger employees and how different the psyche is than

(11:24):
you know, when he grew up and everything, and you know,
he's like it's crazy. He's like, I look at these
young kids and kids, you know, they're twenty thirty year
old results, but and he's like, they all quit their
job before they find a new job. And he's like,
you know, it's fascinating. He's like, you know, when I

(11:44):
grew up, you would never in your life dream of that.
You know, you'd always want certainty at something new before
you jumped onto it and or before you left what
you had in the past. And he's like, unless you,
of course, you're laid off. But he's like, you know
a lot of these younger people, they haven't really had
to worry about that, And you know, a scarcity in
the labor market, and you know that that is so true.

(12:07):
I mean, you look at twenty twenty two, how strong
the labor market was, I mean, how strong hiring work
was relative to you know, those looking for employments. It
was very easy to hop around, find a job and
get a ten twenty percent pay raise.

Speaker 5 (12:21):
Yeah, I mean it was, you know.

Speaker 4 (12:24):
Pretty remarkable. And this is something that the Bureau of
Labor Statistics put out. Employees aged twenty five to thirty
four average tenure was about two point seven years with
the job. Employees aged forty five to fifty four medium
ten or seven years. Employees aged fifty five to sixty

(12:46):
four average around nine point six years. And you know,
there are studies that we looked at too that kind
of debased it and said, you know, how did older
generations at that relative age do? And it was still
generally true and consistent that there was less job hopping
for older generations. So it is kind of fascinating to

(13:07):
think about. And that's you know, something that we're definitely
going to be focused on with the labor market right
now is you know, we've kind of kind of gone
through a period where broad based economy the last couple
of months had been.

Speaker 5 (13:19):
In a slow, higher, low fire type stage.

Speaker 4 (13:22):
And that's a little bit of the concern right now,
as you know, as you've seen some of the take
up with some of the large companies announcing rounds of
layoffs of saying, you know, if hiring isn't picking up
robustly and we are seeing these layoffs, what does that
mean for things? You know that coupled with government continuing
to be in a shutdown, what layfs are going to

(13:43):
come from?

Speaker 5 (13:43):
That, you know, is what does furlough and all this end.

Speaker 4 (13:46):
Up ultimately meaning for people in the economy as a whole.
So I think they're going to be big questions to
be asked, And you know, frankly, it really supports the
narrative that the FED cut interest rates, so I think,
you know, going into the next year, it likely should
be supportive of you know, several additional cuts as we're
going through that, but time will tell.

Speaker 1 (14:08):
Do you think we need a different chairman before that?
Actually philosophy creeps in.

Speaker 5 (14:12):
I'm just asking, Yeah, you know, I think it's tricky.

Speaker 4 (14:17):
You know, I guess if I were in that hot seat,
I would have said we should have cut rights again.

Speaker 5 (14:21):
Earlier this year.

Speaker 4 (14:22):
You know, it looks like December right now is mixed.
On average, it's still tilting towards a cut, but not
as not as certain as it had been.

Speaker 5 (14:32):
But you know, it's gonna.

Speaker 4 (14:33):
Be kind of interesting for them to navigate the next
couple of months or next several weeks at least, as
we are still in the shutdown. There's a lot less
economic data that's being reported, so, you know, being said,
there's there's alternate ways you can get it. There's you know,
there are private surveys that have come out. I mean,

(14:54):
you look at ADP jobs report this week that showed
pretty weak hiring.

Speaker 5 (14:58):
You know, it was fifteen thous jobs.

Speaker 4 (15:01):
Carlisle, the large private equity group, had put out earlier
this month. You know, their estimate for the last jobs
report was around seventeen thousand, So it's it's definitely slowed
for sure in certain capacities. But it is kind of
a weird, weird void of some of the traditional economic.

Speaker 5 (15:18):
Data that you have seen, oh for sure.

Speaker 3 (15:21):
Yeah, And I think part of it is uncertainty right
now with the shutdown and things like that, just kind
of it's a little bit of a ripple effect into
the private market looking at some of those things too,
how's that going to affect, is what's going to slow
down and how it may affect people or companies. So
they are a little hesitant to pile on the new employees,

(15:42):
so to speak. But a lot of things to consider.
But yeah, there is a lot of decision making going
on right now, whether it's for individuals or government, et cetera.
We want everybody to make the right decision. And I
know if we talked about politicians make the right decision,
that's a whole lot of show that we're not going
to go there. When you think about things and thinking

(16:04):
about even common reasons for job changes, there's a lot
of things on the list. I mean one is hits
the top of the list, is of course being laid
off or being terminated, and there's tens of thousands being
mentioned on every day on TV right now and on
the different stations. So how will that affect their futures?

(16:29):
A lot of people are not prepared to be laid off,
simply put. You know, they just are not prepared. They're
not expecting that to happen. They might be with a
solid company, and like you're seeing with AI and some
of the big corporations, they could be with a very
very good company, but they figured out maybe a quicker
and smarter way using the technology of today versus technology

(16:51):
of the past to make a difference there. So that's
a big one common reasons for job changes. Another one
is limited growth or promotion opportunities. And I think in
the past the baby boomers kind of stuck with their
job a little bit longer, not being anxious to find
something new. I mean Blake's grandfather, my dad, he worked

(17:15):
on the railroad almost fifty years wow. So I mean
he started working when he was fifteen or sixteen, full
time on the railroad and he retired at about sixty five.
So and when we have a lot of boomers coming
in and retiring over the last few years, many of
them maybe only had one, two or three jobs and

(17:36):
that was it. Yeah, you know, and I think as
we go forward, we'll probably see five, six, seven, eight, nine,
ten for some people, and then the planning process can
be even more complex for them because they may have
got started on some things, but they didn't get the
full benefits of some of the plans that you know,
they might have to have some more seniority to get

(17:59):
all future benefits that they would have elsewise. So I
think that's important to look at the planning process and
make sure they're planning appropriately. Every time there's a change
in a job position, there's going to be things that
they can look at, employee benefits, what to do with
four and k's. We'll go through some of that in
a little bit. But you want to take control and
not forget about those things that you've left behind. So

(18:22):
it's very very important to One example we sometimes use
is if you leave your company, even have retirement or
switch jobs, and you're walking out the front door of
the company, do you want to leave your four own
K behind you? You know, it's one of those things
because you need to take control of that. You need
to be proactive with that. You can roll it over

(18:44):
into an IRA, for example, and have pretty much unlimited
choices of where to invest it versus the old plan
with the old choices. But another reason for job changes
could be poor management or workplace culture, and that has
changed in many companies too. We won't name companies, but
there are some that have really changed the direction of

(19:04):
how they look at how to grow their business. And
it isn't necessarily always for the best. So you might
be looking for a different position yourself, seeking better balance
between work and life. That can be a reason for
a job change, you know. The overtime of the past
isn't I don't think the younger crowds looking for overtime

(19:25):
pay not as much, you know, Like I mean my parents,
for example, if they could work overtime and make extra
money by working an extra holiday or this or that,
they did that because that's how they looked at it.
But I think the time balance is being looked at
a little bit closer in today's world, making sure you

(19:45):
do have the family life as well as the work life.
And some positions don't work as easy as others in
that area. Financial necessities or relocation can be another reason
for job change. A lot of corporation may move their
headquarters or they may consolidate their locations or grow their locations,

(20:06):
and then you're kind of at the whim of if
you want to stay with that company, you're going to
have to make a big change. But you may be
pretty well ronted in the community and you really don't
want to change. Your kids are going to certain schools,
there're a couple of years from graduation. You don't want
to upright them and start over and things like that.
So it makes it to be a big decision for you.
And then major life events prompting a shift in priorities,

(20:29):
so it could be even a health issue that can
change as well. So many things to look.

Speaker 1 (20:35):
At, absolutely, and that's what we're going through here today
on many talks. We're going to take a quick break
for some news and we'll have more with Blake and
Terry coming up. Welcome back to Money Talks with Terry

(20:56):
Sandbold and Blake Sandvold, and we're talking about, you know
a little bit of an uncomfortable topic today, retirement, maybe
due to a layoff or a job loss, and what
to do after a layoff or job loss Terry and Blake,
and we do have a nice mailer Money Talks Mailer
of the Week put together. If you guys could share that,
that'd be great.

Speaker 4 (21:12):
Yeah, we've got a great one that's entitled retirement Strategy
after a job loss. Go through topics such as emergency fund,
family budgets, health insurance, employers, sponsored plans, networking, reassessing goals
and more. So very helpful in this time. If you'd
like a copy, giver offs to call at nine to
five to two y four four two eight three seven

(21:33):
or go online to samfold.

Speaker 5 (21:35):
Fg dot com.

Speaker 2 (21:36):
Perfect.

Speaker 4 (21:38):
So next next time we have is financial steps to
take after a job change or layoff. And you know
this is kind of the heart of a lot of things.
So first is really assessing immediate financial needs. You know
what are the must must dos, must have us right away.
You know, it's really important build or revisit your emergency fund.
So if you haven't gone through that, it's a good

(22:00):
time to evaluate what do you.

Speaker 5 (22:01):
Have in that standpoint.

Speaker 4 (22:03):
You know, ideally you want to look at three to
six months of living expenses. I always tell people as well,
if you have a more kind of unique commission type
skill sets, you know, you may air on a higher
end of that, you know, if it's so something to
look at there, But I think having that emergency funds

(22:23):
liquid three to six months expenses is a good starting spot.
Use these savings to bridge gap when income stops temporarily.
So first things should not necessarily be the dip into
credit card debts. You know, it is ideal if you've
got that emergency fund and savings accounts. Prioritize essential expenses housing, utilities, food, insurance, insurance,

(22:45):
et cetera. Avoid larger non essential purchases during the transition period,
you know, especially as it may take a little bit longer.

Speaker 5 (22:53):
To find a new role.

Speaker 4 (22:54):
Right now, we'll see manage health insurance coverage, so understand COBRA.
It allows you to continue your employer's coverage. That can
be costly. That surprises a lot of people at large companies.
You know, how large of a benefit that actually is. Yeah,
and one employer, you know, true full plan costs may
look like but do you want to look and evaluate that.

(23:17):
Compare plans in the health insurance market for potentially lower options,
considering for file filing for unemployments if you're eligible. So
it's a reminder, every state has their own requirements on that.
And remember unemployment benefits are generally taxable and typically last
up to twenty six weeks, so that's changed a lot
over the last couple of years, up and down, et cetera.

(23:40):
So very important to look at each of those steps.

Speaker 1 (23:44):
Absolutely.

Speaker 3 (23:46):
Yeah, So it does put people into sometimes if you're
not prepared, to put you into a panic mode. If
you are prepared, you have to regroup and relook at
what to spend first, second, third, if you if you
have to down that line for a while. And that's
one of the things one of the things we can
help people with is look at the overall dollars and

(24:06):
cents you do have and look at the more tax
efficient way to spend your dollars if you do need
to spend those dollars in that situation. So very very
important on the planning process. By planning ahead, you'll have
those different buckets of money to go to, and some
might be capital gains rates, some might be earner income
tax rates. If you have to dip into an IRARA,

(24:27):
then you have tax and if you're not fifty nine
and a half, you could have an IRIS penalty on
top of the tax, So we want to make sure
you are prepared. So planning at an early stage can
help you be prepared for an unknown situation like this,
and we can't overemphasize that enough. All you'd have to
do is talk to somebody that has been laid off
and they will rein they'll reconfirm what I'm telling you

(24:49):
on this one. Yeah, because they might have learned the
hard way or found out that it wasn't as they
were not as prepared as they were hoping they would
have been. So another thing that's in regard to to
after job loss or jobs change is what to do
with your retirement or other employer benefits. So one that's
a big topic for a lot of people is what

(25:09):
to do with your four one K or retirement plan.
You do have a lot of options. It doesn't matter
what age you're at. If you do leave your company,
you can move your four one K before retirement. You
don't have to leave it with your company the whole
time until you retire. But one option is you can
leave it with your old employer, but it might have

(25:30):
limited control and you know most likely you're going to
have the fees associated with doing that. You'll in most cases,
you're just going to have an eight hundred number for
your questions. They're not going to help you with the
guidance of what to choose and what to pick and
how it can work for you personally. So I mean
that's why I use that example. If you're leaving the company,

(25:52):
why leave your four one k behind that type of thing.
You can roll it into an IRA individual retirement account.
There's no tax for that, there's usually no cost to
move that as well, and the one big advantage for
that is it can drastically expand your investment choices and
in many cases flexibility as well. So what we would

(26:13):
usually do if you're looking at that, have you bring
in your old plan and your old choices. We'd run
through a comparison of what that is, cost, fees, net returns,
all of that, then we show you.

Speaker 2 (26:29):
Vice.

Speaker 3 (26:31):
But again, if you've left the company, why do you
want to have the old eight hundred number as your
only defense so to speak? On building that piece as
you go forward. So in most cases we do recommend
to consider that because the unlimited options out there, there's
tens of thousands of mutual funds. You might have ten
or twenty or thirty in your four O one K

(26:52):
for example, and are they the right ones?

Speaker 2 (26:54):
Is the key.

Speaker 3 (26:56):
You can expand into sector funds specific sectors of the market.
So if one part of the market is doing much
better and it's not a choice in your forum K,
that will allow you to have the flexibility for that.
Another option you do have is you could transfer your
new employers to your new employer's plan if they allow

(27:17):
you to combine it for simpler management. But again you're
locking into the new choices of the new plan and
that might not give you the long term hope that
you are looking for in regards to flexibility. Another option
you can have this is our least recommended one, and
that is to cash it out, and that's usually discouraged

(27:40):
due to taxes and penalties and losing long term future
growth for retirement. So looking at and if you can
not do that in all cases, we'll show you take
a look at what your options can be. Looking at
your overall planning process, looking at your overall assets, and

(28:01):
ideally come up with a plan that does not well,
have you consider cashing that out. There's vesting issues too.
Understand vesting meaning determine what portion of your employer.

Speaker 2 (28:14):
Contribution you keep if you leave.

Speaker 3 (28:17):
Sometimes a match might have a five year vesting meaning
if they give you a match on your you put
in a you put in a dollar and they match
it with fifty cents. For example, there could be a
five year vesting schedule which means you get twenty percent
of that match part. If you leave in the first year,
second year forty percent, and so on. That can be

(28:37):
a cliff vesting, so you have to be there at
least five years to get all of it or none
of it, the match part. So it's important to understand
how that does work too, and then you know in
most cases the matches. You have an option of a
four u K ROTH plan with most companies versus the
traditional pre tax plan. Matches can be done by the

(29:01):
employer pre tax or after tax. Now that was something
that was recent, so understanding how that all goes. If
you do a rollover to an IRA, the ROTH portion
can go to a ROTH IRA, the traditional pre tax
can go to a traditional IRA. So if you don't,
if you try to have it sent all in one check,

(29:23):
it's going to jumble up the text situation for you.
So that's why it's important to work with somebody like
us to help you with that and then Blake if
you want to go through the stock option piece a
little bit.

Speaker 4 (29:33):
Yeah, So stock options are a key part to look
at with a lot of plans, and you know, there
can be a restricted stock which exercise after certain events.
General stock options, you know, maybe stock that you purchase
through an employee stock purchase plan.

Speaker 5 (29:49):
There's a lot of different rules.

Speaker 4 (29:51):
For ramplifications, vesting schedules for each one of those, so
that's really important to understand what they have. Know for
certain stocks as well, there's deadlines that you have to
exercise it by to uh uh to receive the benefit.
There's certain ones stock options that are forfeited uh depending
on how you depart from a firm as well. So

(30:13):
that's that's really important to look at uh and understand
what happens if they're they're invested during that time frame.
You know, does it go back to the company, is
it a partial, et cetera. So I think very very
important to to understand on that uh. You know, it's
it's probably one of the more complex parts out there.

(30:33):
And then I mean there there can even be if
you have stock within your four one K what do
you want to look at doing with that?

Speaker 5 (30:39):
And you know there's certain items called.

Speaker 4 (30:42):
A net unrealized appreciation where you can look in and
uh end up having some of that. You know, essentially
basis realizes income and growth as capital gains. Uh, very
very unique scenario that you do need advice on to
go through. But you know, there there's a lot of
large companies around in Minnesota where they had allowed that

(31:03):
for a long time of having a company stock within
the plan And there are unique options to look at,
but you need to do it properly in order for
it to work right.

Speaker 1 (31:13):
And I'm sure a lot of that got a lot
of scrutiny sometime around two thousand and one in the
end run era. I'm just saying it changed that absolutely yeah, and.

Speaker 3 (31:23):
A lot of people didn't know what to do, so
after they did not work with the planner, they probably
did not do that efficiently.

Speaker 1 (31:28):
Absolutely Well. More on that and so much more with
associated job changes, shifting and retirement. In just a moment,
it's money Talks with Terry Sandbold and Blake Sandbold and guys.
You know, we're talking about something that might be a

(31:50):
little uncomfortable job loss or layoffs and things like that,
but what to do, but incredibly important to do the
right things after such a situation.

Speaker 3 (31:58):
Oh absolutely, there's a lot of people dealing with it.
So that's why we wanted to make it a timely
topic for today's show, because you don't want to take
this on all by yourself.

Speaker 2 (32:08):
A lot of people get they sometimes retrieved from the.

Speaker 3 (32:13):
World, so to speak, and just wonder what to do,
and that's not the right thing to do.

Speaker 2 (32:17):
I mean, I would reach out to us.

Speaker 3 (32:19):
I mean, we're right in Minnataka here if you're in Minnesota,
but we have clients all over the country, so if
you're being laid off in a different state, we still
can help you. If you're laid off across the street,
you know, give us a call, et cetera. But there's
many companies in Minnesota that are doing downsizing right now too,
without being naming the names, but very very important to

(32:40):
take control of that is the bottom line. And at
Sandville's Financial Groups, we've helped people with this type of
topic for many, many, many years. And it kind of
goes along with if you were getting ready for retirement,
you're making major decisions if you go through a job loss.
You do have to make major decisions, so we want
you to make the right ones. So when we're talking
about the different things today, you know, we'll go through

(33:03):
at the very end some of the key questions that
take place. But you really need to reassess your financial plan,
your short term budget adjustments. Take a look at that,
looking at your discretionary maybe cutting some discretionary costs like
dining out, travel, subscription services. You know, can you do
your job as a consultant as a temporary position until

(33:25):
you do find that right position going forward and revisiting
your financial goals, like we mentioned, adjust your savings plans
based on your new income level if you have a
higher income, lower income, et cetera. Maintaining focus on retirement.
Don't chew up your retirement plans just to keep on going.

(33:45):
Because there are other ways to maybe look at that.
We can help you sort through the many ways to
consider that. The debt and credit management. Really keep your
high interest debts under control, avoid new unnecessary borrowing if
at all possible. Updating a state or beneficiary information, you
may be giving up some benefits also, such as life

(34:06):
insurance for your family's protection. So what are some low
cost opportunities out there to consider if you are looking
to replace those in the interim, or have your own
plan that is portable, not necessarily tied to your employer,
because a lot of people may buy their group life insurance,
for example, because it's offered through your employee. It's easy

(34:28):
to do payroll deduct or whatever. Check the box and
it's done, but it's not portable when you leave, so
a lot of people forget that part. So a lot
of times we can find a cost effective plan to
compete against what you were paying. And then also revisit,
in general terms, your wills and power of attorney documents

(34:49):
to match your new circumstances if they have changed. So
very very important to consider that also when you're building
financial Another topic here is building financial resilience, and in
regards to starting a new job, really look at all
the options they do have when you're looking for that
new position. Do they have a four and K enroll

(35:12):
in your new employer's retirement plan as soon as eligible,
do you get a match? Look at what that match is.
Are you taking advantage of that match? It's free money
from your employer, So very very important to understand that
if you have stock options, bonuses, insurance coverage. One thing
we can do is help you look at those pieces
also and then look at what you're doing inside the company,

(35:35):
what you may be building on the outside, making sure
you have a cohesive combination of both in place. Really
discuss your financial plan with your advisor to align new
income and benefits with your long term goals. We have
a lot of people right now that we are putting
together what's called the Retirement Income cash Flow Analysis, which

(35:57):
is the projection of your future. And then a big
changes come up like this could be a big change.
How do we modify that or need to modify that,
and look at how will that affect your long term goals,
How will that affect your retirement? Will it affect your
retirement and to what extent? So that's a good roadmap
of are you really ready for retirement? So looking at

(36:19):
all those things that are very very key. You know,
we can't overemphasize people should have an emergency fund. You know,
a simple example can be being laid off. Another simple
example could be your furnace goes out in February and
Minnesota's that's not a cheap thing to replace. When you
have to replace it. You know, there's many different things

(36:40):
that come up in regards to an emergency fund.

Speaker 4 (36:44):
Yeah, I think it's important to look at and you know,
I do want to hit again a point Terry made
on enrolling in your new employers retirement plan as soon
as eligible, and you know, that is something where we've
looked at a lot of different studies that that's shown
that that is actually one of the the most impacted
parts about people's long term plan is when they change jobs,

(37:06):
they may get a pay raise, but they forget to enroll.

Speaker 5 (37:09):
In the new four on K right.

Speaker 4 (37:11):
So it actually, you know, on average, it takes a
number of years for people's four one K bounces to
catch up versus someone who had stayed in their existing
company because they forget about watching that.

Speaker 5 (37:23):
And you know, that's that's a huge thing.

Speaker 4 (37:25):
So you know, especially if you're getting more money, you know,
keep putting that allocation away. You know, maybe try to
put a little bit more of your raise that you
may have with a new job into that if applicable,
But don't don't forget about that. You know, haven't watched
have that date sets as soon as you're eligible, So
to make sure you are enrolled, and a step further

(37:47):
when you do it, role make sure that it's in
the funds that you're intending to be in, not just
what's default in the plan, because that may or.

Speaker 2 (37:53):
May not be right for you.

Speaker 3 (37:55):
Perfect Yeah, and remember it's part of your futures. So
when you get accordingly statement, just don't look at the
bottom number. Put it in the bottom right hand drawer
of your desk and forget about it. So there's many
choices besides what you may have your investments in, and
the world does definitely change as far as what types
of investments to be in, so very very important to
implement that into your overall plan. So some of the

(38:18):
things kind of in finishing up here, there's some very
common questions that do take place. A lot of the
listeners have often asked what should I do with my
four one K if I'm in between jobs or if
I've been downsized. The person is take control of it
and look at what to do next. You have a
lot of options. What we do recommend is get to

(38:39):
bring in your last statement. We'll take a look at it.
We'll look at the options you do have and show
you comparisons and help you decide what the option may
be that may be better for you, but don't just
let it sit on the sideline.

Speaker 2 (38:52):
Should I use my.

Speaker 3 (38:53):
Emergency fund or take out a loan during unemployment? Also
another question we can help with, how do I handle
a layoff when I have a family depending on me.
It's a scare concern for a lot of people. So
the best thing we feel is a financial advisor can
help you be prepared. And a lot of times you

(39:13):
may be in a profession that you're excellent at and
all of a sudden that profession stops your career because
of a layoff or downsize or retirement. So taking control
and becoming a full fledged money manager on your own
part is a pretty tough task to take on. It's
not something to start for you at sixty five. It's

(39:33):
something to be halfway through. And the next half of
your future is retirement. So planning and helping you manage
your assets all the way through retirement is very, very
critical as you age, the thing that's important is are
you going to be as involved and is interested in
it as you go forward. In many cases we have

(39:54):
people that are very engaged, and that is great. We
have great conversations and We bring a lot of information
to them, but a lot of people say, I don't
want to do this. Terry, you do what you do, Blake,
you do what you do. And we always tease and
say not everybody wants to do this twenty four hours
a day like we do, and seven days a week.

Speaker 1 (40:12):
And you don't get that.

Speaker 2 (40:14):
Yeah, we just can't figure that out.

Speaker 3 (40:16):
So during the holidays, believe it or not, we might
talk about business off on the sideline once in a while.
We got to be careful about that, but it never stops.
So we want to make sure that you have somebody
working as your team so you don't have to be
working twenty four hours a day yourself on your financial future.
So give us a call at Sandbold Financial Group. We

(40:37):
have been doing this since nineteen eighty six and we
have clients all across the country. We're right here in Minnesota.
We can each in person, do zooms, we can do
conference calls. There's as you know, the world has changed.
We don't have to always be sitting right in front
of you to help you with your financial future. We
can do that and we like to do that, but

(40:57):
don't put it off any longer. Take control of your
financial future. A layoff can cause you to take control
of your financial future even if you don't want to.
But keep in mind you do not have to take
it on all by yourself.

Speaker 1 (41:11):
You don't. Absolutely, and Terry, real quick, before we end
today's show, just let everybody know what our moneytoxmailer of
the week is and how they can get it.

Speaker 3 (41:19):
Yep, we have an article that's really pertinent to the
show today. It's entitled Retirement Strategy after a job Loss.
If you'd like your copy today, give us a call
at nine five two five four four two eight three
seven or request it online at sandvildfg dot com