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.
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.
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.
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.
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.