If you feel you’re about to lose your job soon (involuntarily or voluntarily), here are some things I did just before I left mine.
(US examples, but likely applicable everywhere.)
(US examples, but likely applicable everywhere.)
1. Disability insurance
The best type is one that pays in case you can’t do your job anymore, for any health reason. For them to verify what “your job is”, it’s easier if you’re employed full-time. Also, lack of steady income is more risk for insurance abuse, so premiums go up.
The best type is one that pays in case you can’t do your job anymore, for any health reason. For them to verify what “your job is”, it’s easier if you’re employed full-time. Also, lack of steady income is more risk for insurance abuse, so premiums go up.
Highly recommended you get disability insurance while you still have a full-time job.
My disability insurance pays $10K/mo until 65 if I can’t program anymore, and there’s a 1 year period from disability to first payment. Premium is fixed at $2K/yr, and I started it at 35.
My disability insurance pays $10K/mo until 65 if I can’t program anymore, and there’s a 1 year period from disability to first payment. Premium is fixed at $2K/yr, and I started it at 35.
2. Life insurance
It’s a bit harder to abuse life insurance, but you’re still seen unfavorably if you don’t have evidence of steady income. Didn’t require employment verification, but the financial disclosures were extensive, and much simpler if you have a full-time job.
It’s a bit harder to abuse life insurance, but you’re still seen unfavorably if you don’t have evidence of steady income. Didn’t require employment verification, but the financial disclosures were extensive, and much simpler if you have a full-time job.
I got a $5M policy with a 15-year term and a $1.3K/yr premium, at 35. Highly recommended if you have a family, and very cheap if you’re still young and reasonably healthy.
3. Mortgage refinance
If you’re about to face a period of uncertainty, it might be better to face it with some liquid cash in the bank. It’s almost impossible to refinance unless you have a job, or 2 years of self-employment income. If you have home equity, consider a cash out.
If you’re about to face a period of uncertainty, it might be better to face it with some liquid cash in the bank. It’s almost impossible to refinance unless you have a job, or 2 years of self-employment income. If you have home equity, consider a cash out.
I refinanced my mortgage with cash out, and also got a secondary line of credit (applied at the same time with different banks). Total closing costs were about $3.5K. If you end up not needing the money, you can always put it back into the loan. Interest rates seem low right now!
4. Savings
If you think you’re going to live off your savings for a while, you may want to get them out of the stock market (or most of them). When I left my job, I gradually moved everything to US treasuries, but nowadays its all cash.
If you think you’re going to live off your savings for a while, you may want to get them out of the stock market (or most of them). When I left my job, I gradually moved everything to US treasuries, but nowadays its all cash.
Unless you have a very long runway, the risk of having it shrink by 50% overnight is probably not worth the potential gains from the market.
You also sleep better at night knowing that your critical runway is insulated from most of the randomness happening in the world.
You also sleep better at night knowing that your critical runway is insulated from most of the randomness happening in the world.
