Introduction:
Job loss can be stressful and overwhelming, especially in today’s uncertain times. As a financial advisor, helping clients navigate this difficult situation can be an opportunity to provide a valuable service. To find out more about how financial advisors approach this situation, we asked some experts to share their playbook for when a client gets laid off.
Identifying Available Resources:
Eric Ludwig, co-director of the Center for Retirement Income at The American College of Financial Services, focuses on helping people think through three categories of resources: financial, personal, and social. This approach can help clients identify all available resources, including credit, skills, and professional networks, which may provide alternatives and aid in making sound decisions.
Creating a Plan:
Creating a plan is vital when a client gets laid off. Brian Kuhn, a financial advisor at Wealth Enhancement Group, recommends a step-by-step list covering identifying available money, determining job prospects, budgeting, and reviewing employee benefits. Failing to create a plan can lead to major negative consequences and result in delay in getting back on track.
Remaining Positive:
Andrew Crowell, vice chairman of wealth management at D.A. Davidson & Co, believes it is crucial to listen to the client intently and empathetically, encouraging them to remain positive, since the loss of a job often isn’t their fault. Furthermore, he advises on practical first steps like checking if their insurance coverage is still valid or applying for unemployment benefits.
Related Facts:
According to statistics, about 54 million Americans experienced unemployment benefits claims since March 2020. This underscores the importance of having a financial plan that can provide financial stability and enable one to recover faster.
Key Takeaway:
A job loss can be traumatic, but it doesn’t have to be the end. Financial advisors can be great resources for clients trying to navigate life after a layoff by helping them identify available resources, creating a plan, and maintaining a positive outlook.
Conclusion:
Losing a job can be a difficult challenge, but with a solid financial plan and the right mindset, clients can get back on their feet. A financial advisor’s job is to help clients identify potential solutions, create a plan, remain positive and maintain a sense of financial stability, which is crucial for getting through the tough times. With proper guidance, financial advisors can provide clients with vital support to navigate these challenging situations.
