Due to the nature of our economic climate, many people have been faced with the possibility of redundancy. Whilst this can be a very scary proposition, in many cases, if the right financial advice is obtained, redundancy can be a positive experience.
We have listed below a top 10 check list to point you in the right direction.
- Positive Thinking- Occasionally redundancy can be completely unexpected. Try to remain positive and talk to family and friends, as well as trusted advisors about your concerns.
- Entitlements- You may be eligible for a number of different entitlements including;
– accrued annual leave
– accrued long service leave
– severance payment specifically relating to the job loss due redundancy or early retirement scheme
– golden handshake
– payment in lieu of notice
– payment for unused sick leave
– payment for unused rostered days off
– Despite the payment being made as a result of ‘early retirement scheme’ or ‘genuine redundancy’, not all these payments will be taxed on a concessional basis.
- Formulate a new budget- Based on the amount you receive from the redundancy payout, work out a new budget including your expenses. Base this on a weekly budget.
- Re-evaluate your expenses- Don’t spend unnecessarily, this may force you into unplanned debt.
- Assess your current loans position- Talk to your financial institution about loan repayment options. Many financial institutions will work out a more manageable payment structure, if you ask.
- Don’t make impulse decisions. Seek sound financial advice and make an educated informed decision with the lump sum redundancy payment you receive.
- Government assistance– Based on your redundancy pay out, check what financial government assistance you may be eligible for. This may affect your future financial planning and needs.
- Insurance- Now that you are no longer gainfully employed, what level of insurance cover do you need? If your employer provided insurance cover you may need to seek cover of your own. Alternatively the payout may mean that you no longer require all the insurances you have in place so this may present an opportunity to save money.
- Superannuation- It is important to seek the right financial advice in relation to super contributions after a redundancy payout. You should ensure that your financial advisor will assesses your new situation and works out the best superannuation strategy for you, for both your short term and long tern objectives.
- Investment- Consider your short term and long-term financial goal. There are a number of investment options available. Getting the right advice initially could stop you from making a costly mistake and turn a tough time into one that secures your financial future.
Are you facing the possibility of redundancy?
Do you know what your financial future holds?
Join Guest speaker Patrick Quigley of McMahon Osborne Wealth Management for an informative session, outlining different ways in which you can make your redundancy money work for you.
When: 7pm Thursday 22nd November, 2012
Where: Olive Tree Hotel, 111 Evans Street, Sunbury (upstairs)
Seating is limited for this Free Seminar so book now.
Contact Lynda or Kristie on (03) 9744 7144 or email firstname.lastname@example.org.
For more information, please click here.