Many people will go through some sort of job transition or a career change throughout their life. Josh and Austin are here to make sure you are prepared. On this week’s episode, the guys give you several tips on how to best be prepared for a transition in your job. They give advice on networking, budgeting, looking at unemployment, reviewing documents and login info, asking for letters of recommendation, and so much more. Listen in now!
*Please note that this episode features a couple of audio breaks due to technical difficulties. We apologize for any inconvenience.*
Main Talking Points
[1:51] – Emergency Fund
[3:27] – Keep Your Resume Up To Date
[4:11] – Know Your Benefits
[6:01] – Networking
[6:36] – Budget Is Adjustable
[7:48] – Dad Joke of the Week
[8:16] – Review Employment Documents
[9:55] – Talk to Creditors
[11:21] – Look at Unemployment
[13:14] – COBRA
[18:04] – Login Info
[18:57] – Letters of Recommendation
Links & Resources
063: A Good Year For Cooper Tire?
EA – How Cooper Tire Employees Can Prepare for the Buyout Fallout
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to The Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
All right. Hey, hey, hey, welcome back to The Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. Today, we are going to be talking about transitions in your career or job, Josh.
Josh Robb:
That’s right. If you are around the Findlay Ohio area, there has been some big changes in the last year or so from some of our top employers. So Marathon, did some layoffs last year, and then Cooper Tire just announced that they’re being acquired by Goodyear, which may result in some layoffs as well. So this is what is driving this conversation. But in general though, a lot of people will go through some sort of job transition, a career change throughout their life. I saw an article that said, about 14% of people are satisfied in their current job.
Austin Wilson:
14.
Josh Robb:
Yeah.
Austin Wilson:
So that means there’s 86% that aren’t?
Josh Robb:
Yes. So a high chance that people will switch careers at some point.
Austin Wilson:
Yeah, absolutely. We also did an episode, so as a reminder, on that Cooper Tire Goodyear deal, and we’ll link that in the show notes. But yeah, we’re going to look at things from a couple different perspectives today. And then we’re going to take a step back and say, “Hey, where should you always be set up in case something happens? Because you know what happens? Life happens sometimes to everyone.” So we’re going to talk about things from two perspectives. And we also just wanted to point out that there was an excellent blog written by Jess Hanks, a colleague of ours over on The Everyday Advisor, about this topic as well. So we’ll link that in the show notes and check that out as well. So Josh, kind of get us going here.
[1:51] – Emergency Fund
Josh Robb:
Yep. So let’s start by talking about just something that everyone should do. How should I be prepared, just in case there is a change to my career or my job? So let’s talk from a high level. This is applies to just about anyone and these are things you can do now. And you may say, “I love my job and it’s stable.” That’s great, but who knows.
Austin Wilson:
Exactly.
Josh Robb:
… the future is an unknown. So the first one is something that we’ve talked a lot about and that’s, have a healthy emergency fund.
Austin Wilson:
Not an unhealthy one.
Josh Robb:
That’s right. You don’t want it be sick. You want it to be, taking it’s vitamins-
Austin Wilson:
That’s right.
Josh Robb:
… and then ready to go.
Austin Wilson:
Vitamin C.
Josh Robb:
But a healthy emergency fund is somewhere between three to six months. And we had an arc. We’ve talked about that in an episode. Three months, if you are a dual income. So if you have two people that are both earning income, you could be a little shorter because the chances are, you both won’t have that same job loss. Now, if you work in the same industry or at the same company, maybe you want to go towards the more six months point of view and then if something happens with your career, maybe it’s both of you.
Austin Wilson:
You can also lean a little shorter if you are in a highly employable, in-demand job market in an area of the market. There’s jobs everywhere right?
[3:27] – Keep Your Resume Up To Date
Josh Robb:
Job everywhere. Yep. So really just look at your situation and say, “Where’s my comfort level?” On average, the length of time to find a new job is about six weeks. So just keep that in mind. That’s the average, again from highly employable, “That I can walk next door and get a job, to someone very specialized and he’s got to travel across the US just to even find a spot.” So six months is the average. So that’s where fits in that three to six month window, somewhere in there gives you some good time. One other thing to do, and this is something that I’m really bad at is, keep your resume up to date.
Austin Wilson:
I am too. And I always feel in the back of my mind, I’m like, “If I update my resume, it makes it seem like I’m unhappy with doing what I’m doing,” but I’m not at all. So in my mind, I don’t have to do it, but you should always do it.
Josh Robb:
You should. It’s also just, I think, and as I reflect on this, probably a reason that I should start doing it is, it also helps you to remember some of the things as you’re putting them down on paper. “Oh yeah, that’s right. I did work on that project.” And as you go through time, you may have better examples and want to just keep those fresh.
Austin Wilson:
Absolutely.
Josh Robb:
Keep your resume up to date, doesn’t mean you need to put it out anywhere. Have that piece of paper ready to go-
Austin Wilson:
It doesn’t take long.
[4:11] – Know Your Benefits
Josh Robb:
… it doesn’t take long. Know your fine print. What that means is, every job you have benefits, you have different things that are specific to that job, know what those are. You may be missing out on benefits because you’re not taking advantage of them. “Does your company offer discounts for certain things, just because you work there?” Take advantage of them.
Austin Wilson:
Yeah. And that is something your HR contact, wherever you work, is going to be very happy to answer the question. They would prefer you ask the question than not. So there’s probably a lot of benefits that a lot of people’s companies offer that they’re not taking advantage of. And that stands to be for the people who are staying in their job and not having… And they’re going to be there forever or whatever, or if you’re transitioning, that’s the same thing. Because you need to know that side of things on the way out as well.
Josh Robb:
So an example of that, I worked at a company where you get an 11% discount just because you worked for that company. Had I not known that, I could have been paying an extra 11% every month on my cell phone bill. And it was just a perk that they had negotiated. So just know what’s out there, know those special benefits. Know if you have to do certain things, “If I get a physical every year, do I get a discount on my premiums for my insurance.” All those types of things. On the other end, know the fine print on what your restrictions are. So if I was to go look for another job, is there kind of a two year I can’t be in the industry type of thing.
Austin Wilson:
Non-disclosure, sort of non-compete.
Josh Robb:
What are those things there, just know what you’re getting into in that position. So know the fine print.
Austin Wilson:
I also wonder if you’re being asked to leave as part of restructuring or whatever, I wonder if a lot of those restrictions are lifted as they probably are?
Josh Robb:
Sometimes, yeah. And if the company is going out of business, I think-
Austin Wilson:
It doesn’t really matter, right?
[6:01] – Networking
Josh Robb:
… it’s the view point anyways. Number four of this kind of list of things anybody can do while they’re still employed. Networking is huge.
Austin Wilson:
That’s been a fun one during COVID.
Josh Robb:
Yeah. It’s harder definitely. But the idea is get to know people in the industry and get yourself out there because there may be a time where you may be asking for a job, or there may be an opportunity that pops up where they say, “Hey, you know what, I’ve done a lot of stuff with you. I think you’re an awesome employee, I would love to do this with you.” And so, just network out there, see what’s going on. It may benefit your current career or it may be an opportunity down the road.
Austin Wilson:
Yep.
[6:36] – Budget Is Adjustable
Josh Robb:
And then finally, it again comes back to something that hopefully everybody can do is, know your budget monthly, but also know what things are adjustable. So, if I were to all of a sudden lose my job, what are those things that right away I could be just cutting back on, switching, adjusting. What are those things that I’m obligated to do? Mortgage, insurance, the payments that can’t change, but what are those things that I can say, “If it gets tight, here’s the things I know I can slim down on.” So for someone who’s employed, loves their job, not looking around, these are just some of the things you can do just to be prepared for those, what ifs, those big things. And also just in general, a little more peace of mind having that emergency fund there, knowing where your budget is and knowing that, “I have some wiggle room, if I need to.” Does are just fine.
Austin Wilson:
It’s not necessarily dooms day thinking, to be thinking about these things, it’s just good to be prudent about, thinking about all of the outcomes can happen.
Josh Robb:
Yep. And going back to your resume even. Having an up-to-date resume, you may be applying for a board position or something and you say, “Oh, you know what, here’s some volunteer experience I’ve done. Or here’s why it matters to me.”
Austin Wilson:
Or an internal position.
Josh Robb:
Even internal you’re right.
Austin Wilson:
You’re going to want that as well. That’s a great list, Josh. Thanks for sharing.
[7:48] – Dad Joke of the Week
Josh Robb:
Yep. All right. Let’s take a quick break. Do a dad joke of the week, for you.
Austin Wilson:
Are you looking forward to this since last Thursday?
Josh Robb:
Since the last dad joke of the week. So rest in peace. I got a little shout out. It’s boiled water.
Austin Wilson:
Okay.
Josh Robb:
Yep, you will be mist.
Austin Wilson:
You will be mist, that’s funny. Well, good one, Josh.
Josh Robb:
I like that one. It’s a play on words.
[8:16] – Review Employment Documents
Austin Wilson:
It’s a play on words. Yeah, mist versus missed. That’s good. Yeah. So yes, we started looking at how you can be prepared as you’re not even necessarily in that situation. Let’s look at a couple more things that we need to be doing regardless of what our job situation is and what someone may be in the beginning of stages of a layoff should be doing right now. So I got a list of six things we’re going to go through here. Just take this with a open mind that these are things that could really… They could really set you up to go further and to do better in that transition.
So number one, review your employment documents. So that can be, if there’s a restructuring going on and you’ve got a deal, your position’s being eliminated or whatever. Know what is being offered for you in your situation based on maybe how long you’ve been there or whatever, as well as like Josh had mentioned earlier, what are your restrictions. Maybe you have restrictions in the industry or in the field or in the business. That looks different for every company, it looks different for every industry. But be sure that you understand what those are, so that you can have the most options available to you on the other side of that.
Josh Robb:
Yep. And along with that, there may be a severance package or something, sometimes those may be negotiable. So when you’re going through this process, you’re meeting with your employer, whoever it is, don’t be afraid to negotiate. There may be things they’re willing to do or have available to them, where it’s flexible. You may say, “You know what, I’m more worried about healthcare costs. What can we do with this package to make sure my healthcare is covered.” Or things like that. Have that discussion. Don’t be afraid to talk and ask about it, see what is available.
[9:55] – Talk to Creditors
Austin Wilson:
Number two, another thing to do is to talk to creditors. So suppose you have a loan outstanding on a variety of things, could be a house, could be a car, could be a personal loan, could be anything. Talk to your creditors, even if you have the ability to pay it off now or to pay as the payments are due, just let them know that you’re going through this transition because they may be more flexible if needed. Hopefully you won’t need that, and we would not want anyone to have to need to ask for that. But they may be, and that could save you money on extra fees and extra costs if necessary.
Josh Robb:
And they’re more likely to work with you if you’re not late on payments. If you’re calling up and say, “Hey, you know what? I just got laid off, is there anything we can do to make this easier to make sure I can keep paying?” Because whoever this debt collector is, they want to get paid back. Because if they sell it to a debt collection agency, they’re getting pennies on the dollar. If they can renegotiate with you and get you to keep paying, they’re going to get more money in the long run.
So you may even be able to get a lower interest rate, get a couple months with no interest penalty. You may be able to work it out. And if you reach out to them earlier and get that and say, “I’m letting you know now because, I’m on time, everything’s good. But I just want to give this heads up. Can you work with me?” You may be more likely to get something then, than to say, “Hey, I know I haven’t paid in the last three months, is there anything you can do?” And there were probably already in the process of getting you out of there.
Austin Wilson:
Right? Be proactive.
Josh Robb:
Yes.
[11:21] – Look at Unemployment
Austin Wilson:
Number three, look into unemployment in your state. So when you are let go outside of your fault-
Josh Robb:
This is not you quitting., you’ve been let go.
Austin Wilson:
… then you are usually eligible for unemployment and that varies by state. The amount is going to vary by state in situation as well and income brackets and all of that things. But generally speaking, you’re going to qualify for a percentage of your however many months, average salary or whatever. That’s different for every state. But look into your state, the requirements are, what you’ve got to do to continue to collect? That how long you can collect that? Don’t forget about taxes. We’ve been in a unusual situation with COVID as it relates to unemployment taxes, but usually in most cases that is taxable income, so don’t think it’s just free money forever. Look into what that is for your state, we know it’s different for every state, Ohio specifically, we know is different.
Josh Robb:
Understand, what are my obligations, going back to what I have to do? Is there a requirement that I have to have so many job applications sent out, or do I have to have an interview? What are the things I need to do to stay on that unemployment, until I find that job. You’re paying for this unemployment, through your taxes and through working. So don’t feel like, “Man, I shouldn’t be on this, it’s not right for me.” That’s what it’s set up for. Is for the interim period that on average six weeks, “Where I’m in between jobs, to help keep things going.” So if you qualify for it, utilize it. Use that to your advantage to say, “Okay, maybe I don’t need to tap as far into my emergency fund that can actually stay for a different emergency,” those types of things. But again, like Austin said, know what it is. Talk through it. There’s usually a website, people you can call. It’s pretty busy right now with everything that happened with COVID. But in general, they’re pretty helpful people there to get you-
[13:14] – COBRA
Austin Wilson:
All Right. Number four, look into COBRA. And by COBRA I’m talking, Shelby Cobras. You got to look into them, you want a fast loud car-
Josh Robb:
That way you can get to the job interview before anybody else.
Austin Wilson:
That’s right. No, for real COBRA is a five letter acronym that makes everyone happy. Because in the finance industry, everything’s acronyms and none of them make sense. This is actually a government one, which makes it even more-
Josh Robb:
Exciting.
Austin Wilson:
… exciting usually. So Josh, what is COBRA and what does it stand for?
Josh Robb:
I’m sure everybody knows. But COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1985.
Austin Wilson:
Obviously. That’s what it means, everyone knows that.
Josh Robb:
It’s pretty much spelled out there. So anyway, what… By the way, President Reagan passed that.
Austin Wilson:
Yeah, 1984. So-
Josh Robb:
Five.
Austin Wilson:
1985, okay. So generally speaking, COBRA-
Josh Robb:
Were you even born then? You weren’t even born then.
Austin Wilson:
I wasn’t born yet.
Josh Robb:
Oh man.
Austin Wilson:
You were an itty bitty.
Josh Robb:
I was old.
Austin Wilson:
You were an itty bitty. So yes, COBRA. And it’s really, as it relates to your insurance. So if you are let go from your job, this is your ability in the interim of not having benefits, and you’re in a new job, to be able to continue to have the healthcare specific benefits from your old job. So the continuation of benefit program is the way to think of it there. So as you’re looking for jobs, or even there’s usually a window at a new job where you’re not going to be eligible for health insurance or retirement, or whatever that may be. Through that period, you can pay, usually the full amount of the premium, plus alpha. Because it’s very expensive typically.
Josh Robb:
They allow the company to charge I think it’s 110% somewhere right around there, of the premium. So that covers all the costs that would be associated with someone helping run the program. So the company itself is not out anything for you continuing on the plan.
Austin Wilson:
Yes. So you can essentially pay to be on your old insurance longer while you’re unemployed.
Josh Robb:
You get about 18 months normally, in normal times.
Austin Wilson:
And we’re going to reiterate, it is not cheap.
Josh Robb:
No. So you may say, “Well, I’m only paying 60 bucks a month for my insurance at work.” Well that’s because the company’s covering some of those premiums.
Austin Wilson:
Or most of them.
Josh Robb:
You’re going to be paying the full cost that they have per person for you for that insurance.
Austin Wilson:
And another thing to consider is, if you have a family on that plan, they may have been subsidized in some way, shape or form also. So you could see a huge spike. So generally speaking, it’s best to keep that as short a time as possible. It’s also not generally good to go without insurance. So you’ve got to balance those sort of things. But even if you aren’t in the situation yet, it’s good to know what your COBRA policies are at your current employer, if that time were to arise.
Josh Robb:
And along with that, if you know, you’re going to be losing your job, use up your benefits while you’re there. So if I need to go get a physical? If I need to go do this or that? Schedule it while you have that insurance and use it up. Because that that deductible, all that’s going to be applied just for that insurance. “If I know I’m going to be switching, I’m going to probably have a new deductible. So let me use up as much as I can.” Let’s say dental appointments, whatever covers in your medical plan while you’re still employed, go for it. Use it, use those benefits.
Austin Wilson:
You should be the healthiest, cleanest teeth person-
Josh Robb:
Everything.
Austin Wilson:
Everything.
Josh Robb:
Yep. And benefits in general… “what happens to my vacation pay? If I don’t get it paid out to me, I better use all those vacation days out before my time’s up.” As long as you’re able to do those things, take advantage of all those benefits they’re offering you.
Austin Wilson:
That’s a great point that actually didn’t make the list, but we’re going to talk about it anyway. Vacation time. So paid time off, can be thought of two different ways. And I know people who work at companies that handle it two different ways. One is, as soon as your anniversary date or the fiscal year or whatever it is, you get all… So you have three weeks vacation, you get it all at once. So if you retire the day after that date, you can cash out or take it off, whatever you want to do it. That is one way that companies do it. A lot of companies on the other hand do it in what’s called accruals.
Josh Robb:
Throughout the year.
Austin Wilson:
Yeah, throughout the year. So you get all of those days upfront at the beginning of the year. But if you were to leave midway through the year and you’ve taken more than half of those days, you will then owe the company for the difference there, or vice versa. If you left at the end of the year and hadn’t used any of them, you could cash them out. So two different ways that those are handled. But as Josh was mentioning, either know what the company’s policy is on that, so you can use it best to your advantage. If you work at a place or the timing… after you leave, be it through a restructuring or whatever, that can also help you to bridge that gap into the next job.
Josh Robb:
You need some extra cashflow.
[18:04] – Login Info
Austin Wilson:
So that was not even on the list, but we’re going to come back because the list continues. Number five, Josh. Write down all of your login information. So that can be 401ks, healthcare plans, other insurance options through your company, because you may have not needed to look at them or think about them at all while you were working, right? “It’s already taken care of.” And actually, we like it when people don’t look at their investments too much, that’s good. You’re going to need to log in to those things.
Josh Robb:
You’ll need access to those.
Austin Wilson:
And whether that be through rolling things over to someone else or whatever that may be afterwards, you’re going to need access. So be sure that you know what those are. There’s also a lot of digital ways, because I’m a millennial and I do things digitally, to keep track of those passwords. And those may be worth looking into as well.
Josh Robb:
There may be just a lot of people that have it saved on their work computer and just not realize that. If I’m somewhere else, I don’t have the automatically log me in, and you’re right. So just make sure you have all the information you may need access to down the road.
[18:57] – Letters of Recommendation
Austin Wilson:
And last but not least. Number six. Ask for a letter of recommendation parenthesis, if you’re leaving on good terms. I wouldn’t ask for a letter of recommendation, if you did something to get you fired, that probably wouldn’t go over too well. So number one, be a good employee so that you would get a recommendation, we always would like people to do that. But number two, don’t be afraid to ask for it. Because if it’s through no fault of your own, a restructuring is happening. That’s just how a lot of bigger companies and corporations work over time, there are cycles. Your employer would likely be thrilled to help you out in and the transition.
Josh Robb:
They feel bad about it too. I mean, it’s not what they want to do. Most of them don’t get a kick out of firing people, maybe there’s some out there, I don’t know. But in general, especially when we’re talking about a restructuring layoffs, those types of things where, maybe they’re laying 20% of the workforce off. It’s not that they are necessarily targeting you, but you just fit in that layoff category. And so you’re saying, “Hey, no hard feelings. Would you be willing to write this for me? So as I’m looking, I have this additional piece that may get me above everybody else and help me out.” And I’m sure they’d love to do that. Again, if you leave on good terms. If your boss hates you, then you probably don’t want to do that. And the same goes for references as well. Can I use you as a reference? Is a good question to ask. All right. Those are all great. Great points. Love it. You missed the most important one. That’s okay, I’ll talk to you about it.
Austin Wilson:
That’s good, that’s what I got you for.
Josh Robb:
The most important one is, if you’re going through a transition like this, make sure you talk to your advisor, all right. Your advisors are here to help, all right? They can help you read through all that paperwork we just talked about. They can help you understand those benefits, just get them the paperwork. They can also help you make sure that you are still going to be on track. “What do I need to look for in the next job to make sure all my goals are still on track? What do I need to do maybe to catch back up? Maybe it takes me four months to find a job. Okay, where am I at now? What do I need to do to get caught back up to be on track?” So make sure you include your advisor in any big life-changing event, is always a good idea in general.
Austin Wilson:
Absolutely. And I guess if you have any questions about some situation that you might find yourselves in, feel free to ask us. You can shoot us an email at hello@theinvesteddads.com, we will be happy to talk to you about what’s going on. And as always check out our free gift to you. It’s a brief list of eight principles of timeless investing. These are overarching investment themes meant to keep you on track to meet your long-term goals. These things happen, these things can be a part of your financial picture. And hopefully some of these things will keep you on track during that time. Josh, how can people help us grow this podcast?
Josh Robb:
Yep. First of all, subscribe that way you get our podcast every Thursday. Also, leave us a review on apple podcasts. That is a great way for us to rank higher. More people will find our podcasts and hopefully be helped by it. And then if you have any ideas, questions about this job transition, or are going through one yourself, shoot us an email at hello@theinvesteddads, we would love to help you. And then finally, if you know somebody going through this, share this episode, hopefully these tips will help them.
Austin Wilson:
All right. Well until next week, have a great week.
Josh Robb:
All right. Talk to you later.
Austin Wilson:
Bye.
Outro:
Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future, doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don’t miss the next episode. Josh Robb and Austin Wilson work for Hixon Zuercher capital management. All opinions expressed by Josh, Austin or any podcast guests, are solely their own opinions and do not reflect the opinions of Hixon Zuercher capital management.
This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher capital management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions or forecasts provided herein, will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.
