How Prepared are you for Income Loss?
My friend at Jibberjobber has been writing about age discrimination. He’s recounting the story of someone who lost his job and how a much younger replacement showed up. It wasn’t handled well and the man wasn’t prepared to retire early.
Today he gave this advice (I’m only focusing on two points, he made three. The last one was more specific to his situation):
(1) Financial discipline.
I was preparing for retirement. But, I should have done better. Saved more. Hired a financial adviser; not some brokerage flunky. Been more focused on the “what if”. What if the bridge comes up short? That was a question I should have been asking all along. How’s your financial pyramid? Can it stand up to a tsunami of a premature job loss?
(2) Diversified income stream
Followed my own thinking, I should have created my own internet business. Hard to do, yes. Shoulda, coulda, woulda. They will kill you. I had ideas that I could have “spun out”. The internet is perfect for “part time” jobs. Instead of trying to convince younger people to do it, I should have done it myself.
Starting an Internet business is a great avenue to develop another revenue stream. If you have an idea learn how to research demand online (using keyword tools which are often free).
Just like losing weight or any behavior change, having someone give advice and monitor progress improves results. A financial planner is like that. They can guide you so you’ll have a secure foundation and be able to weather financial downturns with less pain.
My husband, who is a financial planner in Layton UT talks about the people who come to his office AFTER something has happened. AFTER they get cancer and don’t qualify for insurance. Many live for now only, and have leveraged the future. Or, they are supporting adult children totally capable of supporting themselves. He’s very good at giving and living by his own advice to invest in your financial future. It’s harder for me.
As this man points out, you may need more money than you think to tide you through job loss and I add through whatever might come. Thankfully this man has the health and job skills to be availble for work.
Written by admin on November 12th, 2008 with no comments.
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