Making smart investment decisions after a job loss
The Better Business Bureau (BBB) of Metropolitan New York and the Financial Industry Regulatory Authority (FINRA) have launched a resource for workers experiencing job loss as a result of corporate mergers, layoffs, or closings. The information is designed to help workers make sound financial decisions regarding their personal finances, retirement funds, and other severance pay during periods of unemployment. In addition, workers are urged to protect themselves from financial fraud by checking the backgrounds of those offering them financial services or advice.
The resource, Managing Your Job Transition, Making Smart Financial Choices after a Job Loss, offers specific tips on how to keep finances on track while unemployed, ask the right questions about company benefit plans and check financial advisers.
Workers are encouraged to preserve funds earmarked for retirement to the extent feasible, so those funds can continue growing to maintain their option to retire at the right time.
"Unemployment is never easy," said Claire Rosenzweig, President and CEO of the BBB of Metropolitan New York, "but the economic impact can be compounded by faulty financial decisions. It is important that we make available objective financial advice that can benefit all New York workers."
"Individuals can't control when they may face unemployment," said John Gannon, FINRA Senior Vice President for Investor Education. "But when faced with a sudden job loss, they may be able to ease the financial impact on themselves and their families. FINRA wants to help workers make sound decisions that preserve their hard-earned retirement savings."