Published in the May 2025 Edition
By Woody Derricks, CFP®,
Accredited Domestic Partnership Advisor
Changes spurred by the Trump Administration have resulted in over 62,000 federal layoffs in just two months. Civilians working as contractors are also seeing losses, and many more are worried that the cancelation of federal funding will impact their careers. With job security on the line for so many people, it is important to know the necessary steps if you become or have been furloughed or laid off.
Avoid Snap Decisions: If you lose your job, you’ll be coping with sudden change and presented with many options. Dealing with all this at once can make financial decisions even more challenging. Slowing down and researching your options properly is better than making hasty decisions. Ideally, schedule a meeting with a financial planner to review everything in detail with an impartial expert to help maximize your choices.
Communication is Key: Make sure you know how to contact your firm’s Human Resources department for any questions or documentation that you may need. The HR Team will likely be the best place to learn more information about the company’s policy, federal and state legislation, and the best methods for filing for unemployment benefits.
Get the Facts: Confirm with your employer whether you are laid off or furloughed. Furlough means you are still an unpaid employee – there is just no work. While a layoff typically indicates a permanent, full separation from the employer. It can mean the company is firing workers or likely eliminating their positions. If you have been notified of a layoff or furlough, ask for your company’s Federal Employer Identification Number (FEIN).
Unemployment Benefits: Visit your state’s unemployment website right away. It will provide you with a checklist of the necessary documents and information. Furloughed workers CAN collect unemployment, but qualifications vary by state. Click HERE for information about how to file for unemployment insurance.
Health Insurance: Ask your employer how long your health insurance coverage will last. This will help you determine your eligibility for COBRA. COBRA is a health insurance program aiding eligible employees and their dependents to continue health benefits when they lose their job or reduced hours.
Out-of-Pocket Costs/Health Savings Accounts: If you have a Health Savings Account (HSA), you can still use those funds for qualified, out-of-pocket healthcare expenses such as co-pays and prescription costs.
Retirement Plans: If you lose your job, you should get the contact information regarding your 401(k) or any other investments you may have (such as an employee stock purchase plan, restricted stock (RSUs), or stock options) from your employer. After you find new employment, you can weigh your options for consolidation or potential rollovers.
It is difficult to stay hopeful when you feel constantly surrounded by negativity for weeks, if not months. Still, it is important to remember to be financially responsible with how you spend and save.
Investment advisory services are offered by Partnership Wealth Management, a Securities and Exchange Commission Registered Investment Advisor. The commentary presented herein contains the opinions of the firm, and this information should not be relied upon for tax purposes and is based upon sources believed to be reliable. No guarantee is made to the completeness or accuracy of this information. Partnership Wealth Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses, or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes, and therefore are not an offer to buy or sell a security. Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. This information has not been tailored to suit any individual.
As a Registered Investment Advisor (RIA), Partnership Wealth Management is committed to providing our clients with financial planning and wealth management services to help them work towards their financial goals. At Partnership Wealth Management, we have a long history of working with the LGBT community. Among the many services we offer are financial planning and estate planning strategies for gay and lesbian couples. Financial planning is an important part of preparing for the future; contact us today to get started: www.partnershipwm.com.