Financial Planner Advises Those at Risk of Losing their Job to Prepare Now

March 21, 2011 - PRLog -- Austin, Texas –Darleen Gilmore of Austin Wealth Specialists has some pointed advice for employees both in Central Texas and beyond, who fear losing their jobs – prepare now.
 
Gilmore, a Certified Financial Planner™ professional who has been in the business for over two decades, advises to accelerate your debt payoff, especially if you have outstanding loans from your retirement plan.  Start by building up cash reserves for at least three months, ideally.

“Make sure your allocation in your retirement account is well diversified and conservative,” says Gilmore.  “You may even need to discontinue contributing to retirement accounts in order to limit deductions from your paycheck and receive more take-home pay to pay off your debts.

“Look into health insurance alternatives by asking questions, such as: ‘Can I be insured under my spouse?’”

Lastly, she recommends meeting with a financial planner to help you make smart, objective decisions regarding your investment – and ultimately your retirement – accounts.

Gilmore also offers some suggestions of what not to do:

“First and foremost, do not borrow money from your retirement plans,” advises Gilmore.  “If you do get laid off, all of that money is now due or becomes taxable with possible penalty.”

Subsequently, Gilmore says not to plan to pay off all debt with retirement funds: “You may need the funds later and you’ll end up owing Uncle Sam instead.”  

As a supporter of building wealth through successful investing, she discourages moving your investments to cash or trying to make a lot of money in the short term by getting more aggressive in your retirement accounts.  

“It is important to remember that your situation is unique to you,” says Gilmore. “Do not simply do what all of your friends are doing.

Her most important cautionary advice: “When your investments are not going your way, don’t panic. Use your resources to seek professional assistance and use these tips to turn your investments around.”

About Austin Wealth Specialists

For the past 20 years, Austin Wealth Specialists has been providing financial planning services including investment management, retirement accumulation strategies and estate planning. The firm's objective is to deliver customized financial guidance in terms of quality from which the client can derive maximum value. The values of Austin Wealth Specialists reflect one thing – a dedication to client success.  For more information, visit: www.austinwealthspecialists.com.