Episode 33: Furloughed At Fifty

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing what it means to be furloughed.

With everything happening in the world today, it is understandable that you might have questions about what it means for your financial future when you hear that you'll be furloughed from your job. On this episode, John discusses the difference between being furloughed and being laid off. Tune in for all the details!

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values. Would you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mild right to your door. I'm Michael Delan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Well, good afternoon, John Browning. How's your day going, sir? My Day is going fantastic. I've had a great day so far. About you? Awesome. Yeah, can't complain, you know, sometimes I still do, but life's been good to me so far. How about that? I'm also thank good. Now, listen, ...

I listen to Joe Wasashfield as like that is such a good song. I'm sorry, and he's way past fifty, John and, but what we're talking about today is a for as another phrase. You've got these classic phrases. Last last episode we talked about financial flexibility. This time, this episode, I want to talk about furloughed at fifty and unfortunately a lot of people find themselves that when we hit fifty, we hit mid career, something like a pandemic happens, that it comes out of the blue and we're furloughed, we're laid off or something. Talk about that. You've probably had some clients in that situation or some people, and there are a lot of people in that situation. What is this all about and is there a difference between being furloughed and laid off? What it? What is all that and how does it apply financially to us? Yeah, this is a I mean this is a very timely topic, right, I mean because we've seen so many and furloughed to some seems like a new term, although it's not. It's happened...

...so much. I mean we're talking millions upon millions of people who have been either laid off or furloughed, and so many of them than furloughed and they're not even sure exactly what the difference between being furloughed and being laid off means. And so University of Chicago, for instance, actually conducted a study about how people felt about being furloughed versus laid off, and what they found is that about eighty three percent of the people who had been furloughed believed that within six months they'd be called back to work. Okay, reality of it was and I would I would have probably agreed with that before I really looked into it. But the reality of when they actually interviewed the business owners that had conducted those furloughs and the reasons that business for those. Instead of laysoff, is a much less expensive to say you're furloughed then laid off. There's some...

...technical reasons for that, okay, but things like unemployment insurance and all sorts of things that we don't need to get into right now. It's cheaper to say you've been furloughed than actually laid off. And if there's any chance that we might call you back and we're going to call it furlough. And the problem is that all these people are thinking I'm going to be called back within six months, but the businesses are like yeah, we really don't think so. We think maybe about forty two percent of the people who have been furloughed. At this point during the pandemic cycle that we're going through, nobody knows how far we are into it because they don't know how long it is going to last. About forty two percent of them will not be called back and eventually it will be rephrased into a layoff instead of just a furlough. So if you have been furloughed, definitely be taken a look, brushing up that resume, thinking about what you could do, maybe differently in the new environment,...

...to get back on your feet. But probably the most common thing that we hear, Michael, is that I've just been furloughed, so I want to talk to somebody, but I don't want to do anything right now because I've been furloughed. So why would I even think about financial planning and investing? And when I try and explain is oh please, this is exactly when you need to do this and plan something unexpected. It has happened and maybe you didn't have a fullblown, comprehensive plan and it's really hard to adjust right now. This is exactly when you need to talk to somebody like myself, somebody who spent their entire career in the markets and understanding the markets to help you develop a personal plan and work your finances so that you can get through this period, not just get through it, but actually thrive on the other side of what's going to happen. Yeah, and if you've not listened to the last episode we did with John, you need to, because if you've been furloughed, that is the time that you need financial flexibility and that's exactly...

...what we talked about in the in the last episode. and John's right, that would be the time to get an opinion from somebody who understands what's going on and can can help you navigate some things. Doesn't mean you're going to make a change, but it sure would be a great time to have a conversation with him. Let's talk about John. What are some differences? You talked about the differing to furlough and a layoff kind of from the employer's perspective, which is really interesting. I didn't know that and one of the reasons I love co hosting this podcast with you. The other thing, what about some of the financial differences for the employee if their furloughed or if they're laid off? Does that make a difference on their retirement system. And thanks. Yes, it does, because when you're when you are furloughed. First the first thing to consider is if you're laid off, you have access to your for one k. You can roll that over into an individual retirement account of...

...some sort, which gives you, number one, a lot more flexibility in your financial planning and, number two, the fees and charges charged on a one K are generally fairly high. So you can eliminate those fees by talking to a good quality financial advisor and the but you can't do that if you've been furloughed because you're not officially separated or terminated from the company. So they that that's one very important difference. The other is that they, the company, can decide not to play pay your your health care, or they would. They would only pay the portion that they paid before. There's a lot of different ways that they can run it. So if you've been furloughed, obviously your income is probably gone down, even with the extra that they've given you an unemployment and now you know, at this point it's kind of up in the air what that will finally end up being going forward. So you're making less money but you still have to come up with your healthcare and unless...

...you make other arrangements, and then if you can't do that, then it just gets eliminated. And Healthcare Insurance is, I think most people would agree, one of the most important things that that we have, because we just don't know what's going to happen tomorrow or the next day, especially if you have children or something like that. So your benefits, and of course you're life insurance, if you have life insurance to your employer and as a post outside your employer, yes, that goes away. So there's a lot of things to consider when you've been furloughed and of course, if you're laid off, you know, hey, it's all over. I'm on Cobra, which is the insurance plan that is they're required to allow you access to, which it's great that you still have access to it, but it's quite expensive. Is that it is? That? It is, yeah, cover, I thought Cobra snake take a bike, because it Cobra takes a bite out of your paycheck. Is it is not cheap, that's for sure. Another reason. Yeah, for somebody to reach out because you you just unpacked like four...

...things there, John, that most people would now that not even think of if they got furloughed or laid off. And that's the life insurance, you know, the one K access. All of those things are questions that most people aren't dealing with because there's so much going on when that happens. Emotionally, the last thing I want to do is think about finances. Right, right, and because I'm not an expert at it, I'm not in it all day, every day, I don't think the way you do, and that's why reaching out to John or financial adviser to say here's what happened to me, here's what's going on. Yeah, what I do? What are your what's your counsel? Should I make a move of some nature? Should I not? What are my options? That's that's what John and Guardian Rockwell help you do. So if you're in a place where you've been furlowed at fifty, reach out to John, talk to him and he's got some ideas and strategies that you probably haven't thought of. I know I haven't thought of...

...ninety percent of what you talked about today and fortunately, you know, I'm in a better spot, but not everybody is. So don't, don't just crawl into your hole, look for options and John and his team can really help you out. And don't think that you have to be a multi bazillionaire to talk to John. He'll talk to people just like me, so he'll talk to you too. So go to the website Guardian rockwealthcom and you can reach out to John. You can request the copy of his Amazon best selling book, Number One Amazon best selling book by the way, and it is build a life, not a portfolio, and that's really important now, because when you're for a load at fifty, John, you actually have some time to really think about life, and so it might be a great time to reach out talking to you and reef think what, what's the next half of my life going to look like? Yeah, that's right. And of course it's not just fifty. You know, forty, here, thirty, anytime you've use so you've been laid off or furloughed. I would just encourage people don't think that that's not the time to talk to a financial advisor. It's...

...actually the perfect time to chat with them, because there are things that you should be thinking about and should be doing and changes that you should make fairly quickly. When this when this type of event happens. And frankly, what I have found, has been my personal experience and many of my friends who have been through a layoffs before, is that it doesn't seem like it at the time, but once you get to the other side of it, maybe that's a year, maybe that's six months, maybe it's even two years, you end up in a better place if you do make the right actions now. So give us a call. That is so true and we'll end on that. And that's that's a breath of fresh air and some hope that is out there from a very experienced man. So let me encourage you if you've been furlowed, if you just don't understand finances and or you just want to talk to somebody who will breathe hope into your life and counsel you and give you a good, good financial counsel as they understand who you are and what...

...is it that you desire in life, because that's really why this all exists. All this money we have is good for nothing if we're not going to build a life with it, and that's what John and is firm it, Guardian Rockwell help you do. They build a life, not just a portfolio. John. Thanks again. That was a great episode on furloughed at fifty and some things to do. Is Number one, reach out to John and talk to him, but know that that's not the end of the road and the future can be very bright. So thanks John. All right, thank you. Okay, go have a great weight buddy. All right, you too. By Bye. So thanks for listening to the building your life podcast with John Brownie. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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