and You Can Learn From It.
This Article was Originally Published on NerdWallet.com
Ron Gardenhire, the Minnesota Twins Manager for 13 years was fired recently from his job and now he has some big decisions to make in regards to his financial plan and investments.
If you have ever experienced a layoff or early retirement you can take a cue from Gardy and adjust your plan using these five tips:
1. Start by Gauging Your Overall Financial Position
Take a step back from the shock of being unemployed and take an objective look at your plan, your investments, spending and other sources of income. This gives you a base. From here you can determine what needs to change to keep your financial life on track.
2. Try to negotiate a severance package
Now's your chance to try to get some additional severance from your employer. Everything's negotiable so try to extend your health benefits, cash out your PTO, and try to extend your severance pay.
3. Re-run your retirement projections
Adjust your financial plan to reflect your new situation and lower income. Can you afford to retire early and still live the life you want? Or can you at least sustain yourself until you find a new job. Make sure you run some different scenarios to see what happens if you find a lower paying job.
4. Look for ways to supplement your income
This might be the chance you have been waiting for to turn your hobby into a job. There are a lot of ways to make money so start trying to find ways to replace or at least supplement your income until you land that next job. Try not to draw from your retirement accounts as there can be some hefty taxes and penalties.
5. Reallocate your portfolio
Now's the time to take a look at your current investment portfolio and decide how to re-allocate to reduce your risk. If you think you are going to need any money from your investments you should consider moving some of your stock investments into less volatile bond funds.
The key is to take a step back and analyze your current financial position. Reassess goals, budget carefully and consider other potential income sources. Finally, with this knowledge, you can confidently adjust your investments to better suit his new situation.
Best of Luck to you Gardy!
Read the full article for more detailed analysis of Ron Gardenhire's Financial Plan.