Guide for Tech Professionals Facing a Layoff or Career Change

Many people feel a mixture of stress and uncertainty during a job transition. Making the right moves early can help preserve your wealth as you plan for the future.

Resetting and Building a Plan

While your circumstances are dynamic and have likely disrupted your financial plans, it’s important to take inventory of your situation. A solid plan can play an important role in maintaining your finances. Some key considerations to keep in mind:

1. Do you need to diversify vested equity from RSUs or ESPPs?
2. What are your plans for your 401(k)?
3. Are you receiving severance? Has this been factored into your budget projections?
4. Have you evaluated options to maintain health insurance?

These can be difficult questions. Farther advisors have significant experience supporting clients in similar situations.

Recommended next steps:

Evaluate options for your retirement plan

Make a decision on what to do with equity you’ve received via RSUs, ESPPs, or other equity award structures. Do you want to leave these in place, diversify, or sell? Each option can have benefits, and it’s important to take your holistic finances into account when deciding.

Assess portfolio diversification 

Is your portfolio concentrated in a single asset? Consider the benefits of diversification and tax implications of any equity sales.

Decide where to place your 401K

You typically have options on what to do with your 401(k). You can keep it with your former employer, roll it over to an IRA, or wait and roll it over to your next company.

Review any severance plans or benefits packages

Look closely at any benefits package you may have received. Carefully evaluate this and understand how it impacts your finances, from income to tax impact.

Speak with a financial advisor

While you’re undergoing a time of significant change, it can be easy to put off creating a plan. Farther wealth advisors can help build a comprehensive financial plan while you search for your next role.