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Perhaps no single factor impacts your financial health more than your earning capacity. When your earning capacity is significantly altered, your entire financial life shifts. Whether you’ve been promoted, are about to land the job of your dreams, have been laid off, or are launching a new business, consulting with a Certified Financial Planner™ practitioner like Rachel McDonough, can save you significant stress and help clarify the steps you need to take to conserve and manage your assets. Sound financial advice from a trusted professional can be a valuable investment. 
Whatever your transition looks like – whether an increase in income or a temporary lull – take inventory of your lifestyle expenses. Are there ways to cut expenses on items in your budget that aren’t important to you in order to increase your savings? Obviously, when we see a drop in income, it’s easy to understand why this exercise is important, but even if your cash flow is increasing, making and monitoring a budget can be the first step to help you see your financial situation more clearly. (If you’ve been downsized, I recommend creating a no-frills emergency spending plan that will preserve your savings and your purchasing power while you search for new ways to generate income.) Review and adjust these plans often, especially when your employment situation changes.
Establish or replenish your emergency fund. The Certified Financial Planner Board of Standards generally recommends keeping 3-6 months worth of expenditures in a liquid, interest-bearing investment. In times of economic recession, many investors opt to set aside even more. This is the cash you may need to live on should you be laid off or transitioning to self-employment until you establish new sources of income.
Benefits, such as health, disability and life insurance, employer retirement plan contributions and stock options, are important and often-overlooked portions of a compensation plan. If you are considering self-employment, consider the cost to replace those plans. If you are moving to a new position, consulting with your financial advisor can help you understand the value of your new benefits package and take full advantage of it. Speaking of benefits, don’t leave a trail of orphan 401(k) plans with former employers, your investment is essentially unattended and may not be earning the return on investment that it could be. Rolling these plans into an IRA could provide a greater variety of investment options and reduce the risk of neglect. In addition, keep tabs on fully vested pension plans at former employers. These benefits often make a huge difference in your retirement projection, but because they provide monthly income rather than a lump sum account balance, investors often under-appreciate their value.
Create a long-term financial plan. While change can be disconcerting and tiring, keep your long-term financial goals in mind and adjusting your plan to achieve it. Your financial advisor can provide you with insights and options to help you prioritize and maximize your resources to keep your plans on track. One of the most common mistakes investors make is to assume that a financial professional can’t help them until they are fully settled into financial status quo. But times of transition can be great opportunities to refocus your financial plan and take time for financial goal setting.
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