You got laid off: What to do with your money –



) – When you’re laid offyou’re not going to be in the clearest state of mind to take care of your financial life.

It can be challenging to do much of anything at first, says Pamela Capalad, a New York-based certified financial planner. “But you have to deal with the financial stuff.”

To safeguard your finances, consider the following first steps.

Secure your human resources contact

“Before you walk out the door — and companies may say you’re out the door within five minutes — make sure you have a contact,” says Andrea Kay, Cincinnati-based author of “Work’s a Bitch and Then You Make It Work, and several other career books.

Having a person to connect with at your former employer, like an HR pro, will be crucial if you need help rolling over your 401(k) retirement plan, or if there are any issues with delivery of your severance pay.

Find out if there will be severance

Your employer may or may not offer severance. Depending on the company and your state’s laws, this could include severance pay as well as any remaining paid time off you were entitled to. Like other forms of income, severance pay is subject to income tax.


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