Staying Financially Resilient While Unemployed: An Interview with Jacquette M. Timmons

Read an excerpt from my most recent RECRUITING NEVADA column....

I had the privilege of meeting Jacquette M. Timmons, founder and CEO of Sterling Investment Management (an investment education and financial coaching firm) during a reading of her new book, FINANCIAL INTIMACY (Chicago Review Press, 2010). I found Jacquette’s balance of financial know-how, strategies for effective communication, and humor delightful, and I’m so glad she has generously agreed to share her recipe for financial savvy in difficult times with Nevada jobseekers.

Alexia Vernon: If someone receives a pink slip, what are the questions he or she should immediately ask his/her employer?

Jacquette M. Timmons: First, if this is coming as a complete surprise, do not sign anything until you've digested the news. Even if your employer wants to wrap up things immediately and wants you to leave the premises post haste, ask for fifteen minutes to collect yourself.

Second, ask for a letter of recommendation, on company letterhead. It's best to have it in-hand or in your personal email in-box before leaving the premises. You don't want an "it's in the mail" scenario.

Third, negotiate for more severance - no matter how much they offer.

Fourth, ask them to pay your medical/health insurance for the duration of your severance. Try to delay having to pick up this expense, even if by COBRA, for as long as possible.

Alexia: When someone finds himself or herself unemployed, what's the first thing he or she should do with regard to personal finances?

Jacquette: Stop using credit cards, unless for emergency purchases or services. If tracking your money isn't a habit, now is a good time to begin this practice. Also, reduce any unnecessary life-style expenses, (e.g. if you're accustomed to going to Starbuck's everyday, start making your coffee at home during the week -- go to Starbuck's on the weekends.) Move your existing retirement account (401(k) or 403(b)) to an IRA, and to the extent possible, keep the same mutual fund holdings and maintain the existing allocation. This is not the proper time to make investment decisions, per se, but believe it or not, people often forget about retirement accounts from previous employers! Taking this step will help ensure this doesn't happen to you.

To finish reading my interview with Jacquette, CLICK HERE.