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Setting Up a Support Network When You’re Unemployed

What is an unemployment support network?

An unemployment support network is a group of people, organizations, or resources available to help you cope with issues that unemployed people must face. Setting up a support network when you’re unemployed is important for several reasons. First, when you lose your job, your ego is likely to be damaged, and you’ll benefit from the encouragement and perspective that talking to others can bring. Second, if you plan on returning to work, you may need help finding a new job or exploring a career change. Third, if you’re an older unemployed worker thinking about retiring rather than seeking another job, you may need the advice of others who have experienced retirement firsthand. Whatever your reason for needing support, you can easily find it if you know where to look.

Emotional support

When you lose your job, you’ll most likely turn to your friends and family for emotional support. Another option is to find or form a support group (also called a self-help group) to share information and provide emotional support to one another.

Finding a support group

If you live in a metropolitan area, finding a local support group should be easy. Look in the Local or Community sections of your newspaper or contact your local community center, college, or university to see if it sponsors support groups. You can also try the American Self-Help Group Clearinghouse website www.mentalhelp.net for information on starting or finding a self-help group in your area.

Job-hunting services and assistance

Rather than go it alone, you may choose to find a job using an employment professional or a government agency or community organization. Some employment professionals will charge you a fee for their services, while others do not. Government job services are free but may offer only basic assistance. Community organizations may sponsor free or low-cost services, which are sometimes tailored to the needs of specific groups.

For-fee services

If you are having trouble marketing yourself, you might consider paying someone to help you. You can, for instance, hire image counselors to teach you how to dress professionally, rewrite your resume, target your job search, and rehearse interviewing. Or, in a tight job market, you might use a for-fee job placement agency. You sign a contract with the agency, under which you promise to pay a flat fee or a certain percentage of your first year’s salary and in turn, the agency promises to find you a suitable job. Whatever your reason for paying someone to help you find a job, be careful. Before you sign a contract, know what you’ll get for your money. How hard will the company work for you? What kind of guarantee does it offer? What specific services does it offer? In particular, check the company’s reputation. Make sure that it has been in business in the same location for several years, and call the Better Business Bureau (if the agency is a member) and ask for references or published statistics on its placement success rates.

Fee-paid services

  • Headhunters and recruiters: If you work in a high-demand occupation or you are a professional with a few years of experience, you may be able to find a job through a recruiter or a headhunter. In fact, one may come looking for you! Headhunters or recruitment professionals are usually paid by companies who use them to find qualified employees. Most headhunters specialize in finding employees in a particular field, and they expect you to be flexible. They may not want to talk to you, for example, unless you are willing to relocate. They also may not be interested in you if you are changing career paths or if you don’t match their area of specialization and requirements.

Caution: A recruiter can seem like your best friend when you are unemployed. Remember, however, that the recruiter is also a salesperson, and you are the product. Don’t be upset by a recruiter’s reluctance to talk to you unless you are a seasoned professional, and don’t be misled into thinking that a job offered through a recruiter is necessarily the best job for you or the only good way to find a job.

  • The temporary or permanent placement agency: Another type of fee-paid employment service is the temporary or permanent placement agency. You sign up with an agency and specify the type of position you are looking for, and it tries to match you with a job opening. You’ll work for the agency, not for the company unless the company buys your contract from the agency. This means that you won’t be eligible for any company benefits or perks. Some agencies specialize in placing candidates in a certain industry (banking, for instance) while others are generalists. A good employment service will be responsive to your needs, offer training and benefits (if necessary), and won’t mislead you about the jobs they usually have available. Some companies publish “teaser” jobs in the paper that probably won’t be available when you call the agency because they are designed to lure you in to fill out an application.

Caution: Although taking a temporary job is a good way of supporting yourself for a short time or even finding a permanent job with a good company, you’ll probably find that the pay is relatively low. However, you may be able to negotiate a better rate of pay if you are a good, qualified candidate.

Government agencies and community services

Your local employment office (where you apply for unemployment insurance benefits) may assist you in finding a new job, or there may be programs set up in your community to help displaced workers, low-income workers, senior workers, or veterans. Check your telephone directory under Job Services, Employment Services, or Social Services. Your local college or university may also sponsor career-counseling seminars or courses that are open to the public even if attendees are not enrolled in a degree program.

Outplacement assistance

If you have prior warning that you will be losing your job, you can do several things to make unemployment easier. First, if you’re being laid off, find out if your company has outplacement assistance. You may be able to attend seminars or speak with a job counselor one on one. Next, if you plan on looking for another job, ask about your current company’s policy regarding employment verification and references. If a potential employer calls and asks about your work history, what information will the company give out? In addition, are your coworkers or supervisors allowed to give professional and/or personal references? If you’re leaving the company because you’re moving or being laid off, don’t forget to ask everyone you know who might have leads on job openings for introductions to managers or executives at other companies.

Other job-hunting resources

The Internet

Many Internet sites are devoted to the needs and concerns of the job-hunter. These sites offer career counseling, networking opportunities, job fairs, and lists of available jobs (including on-line applications). Some popular sites are Monster (www.monster.com), Headhunter.net (www.headhunter.net), and the Career Resource Center (www.careers.org). When you’ve lined up a job interview, you can prepare for the interview by researching the company on-line under the company name. You may be able to pull up press releases, articles about the company, or even financial information. You may have to pay an extra fee for the latter. Information about public companies is readily available, while information about private companies can be difficult to find.

Libraries and bookstores

If you go to the library or a bookstore, you’ll find many books on job hunting and career counseling. These books can be quite useful, particularly if you’ve been out of the job market for a while or you need help in a particular area. You can also buy or read local and out-of-town newspapers that advertise jobs.

Friends, family, and acquaintances

One good way to find a new job is to tell everyone you know that you’re looking for one. Your friends, family, and acquaintances may know about jobs that are presently open within their companies or about job opportunities that might be available in the future. They may also be able to put a good word in for you with a manager or the human resources department. Some companies use a very formal process to hire (first open the job to current employees, next advertise the job to others), while others hire more informally.

Special considerations for retirees

There are many resources tailored to your needs if you are an unemployed older worker looking forward to a relaxing retirement, searching for volunteer opportunities, thinking about working part-time, interested in opening your own business, or facing health concerns. You can find support groups in your community or on the Internet to help you adjust to retirement. There are also a multitude of organizations set up just to help you find the resources and information you need.

 

 

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Investors are Human, Too

In 1981, the Nobel Prize-winning economist Robert Shiller published a groundbreaking study that contradicted a prevailing theory that markets are always efficient. If they were, stock prices would generally mirror the growth in earnings and dividends. Shiller’s research showed that stock prices fluctuate more often than changes in companies’ intrinsic valuations (such as dividend yield) would suggest.1

Shiller concluded that asset prices sometimes move erratically in the short term simply because investor behavior can be influenced by emotions such as greed and fear. Many investors would agree that it’s sometimes difficult to stay calm and act rationally, especially when unexpected events upset the financial markets.

Researchers in the field of behavioral finance have studied how cognitive biases in human thinking can affect investor behavior. Understanding the influence of human nature might help you overcome these common psychological traps.

Herd mentality

Individuals may be convinced by their peers to follow trends, even if it’s not in their own best interests. Shiller proposed that human psychology is the reason that “bubbles” form in asset markets. Investor enthusiasm (“irrational exuberance”) and a herd mentality can create excessive demand for “hot” investments. Investors often chase returns and drive up prices until they become very expensive relative to long-term values.

Past performance, however, does not guarantee future results, and bubbles eventually burst. Investors who follow the crowd can harm long-term portfolio returns by fleeing the stock market after it falls and/or waiting too long (until prices have already risen) to reinvest.

Availability bias

This mental shortcut leads people to base judgments on examples that immediately come to mind, rather than examining alternatives. It may cause you to misperceive the likelihood or frequency of events, in the same way that watching a movie about sharks can make it seem more dangerous to swim in the ocean.

Confirmation bias

People also have a tendency to search out and remember information that confirms, rather than challenges, their current beliefs. If you have a good feeling about a certain investment, you may be likely to ignore critical facts and focus on data that supports your opinion.

Overconfidence

Individuals often overestimate their skills, knowledge, and ability to predict probable outcomes. When it comes to investing, overconfidence may cause you to trade excessively and/or downplay potential risks.

Loss aversion

Research shows that investors tend to dislike losses much more than they enjoy gains, so it can actually be painful to deal with financial losses.2Consequently, you might avoid selling an investment that would realize a loss even though the sale may be an appropriate course of action. The intense fear of losing money may even be paralyzing.

It’s important to slow down the process and try to consider all relevant factors and possible outcomes when making financial decisions. Having a long-term perspective and sticking with a thoughtfully crafted investing strategy may also help you avoid expensive, emotion-driven mistakes.

All investments are subject to market fluctuation, risk, and loss of principal. When sold, investments may be worth more or less than their original cost.

1The Economist,“What’s Wrong with Finance?” May 1, 2015

2The Wall Street Journal,“Why an Economist Plays Powerball,” January 12, 2016

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[Motivation Monday] Enjoy Your Journey

PLJ Income - You Fall You Rise

Life has unexpected bends, some are delightfully surprising, and others… well, aren’t. But either way, as long as we’re on the road of life, there’s plenty to see and to experience and to be discovered by each one of us. And if we keep moving forward, letting our will carry us, we’re in for one fantastic journey.

Life is the ultimate road trip. For some people, the road is straight with just a few bumps along the way, but for most of us, that ride is full of curves, rough patches, and unexpected fun.

However your journey is, the key to living an inspired life is to explore it, own it, and keep moving forward. Bask in the precious privilege that is to be alive.

Here are our best tips that will allow you to keep moving forward and enjoy your journey while doing so.

1. Look for beauty and knowledge.

Just like when you find yourself contemplating how stunning the view is during a road trip, much of the beauty of life is in the details that could easily go unnoticed. Our world is filled with wonders, but we’re often simply too busy and don’t pay them the attention they deserve.

If you want to add more spark to your life, we suggest that as soon as you wake up, you take a couple of minutes to appreciate all the beauty that’s around you, and don’t be afraid to add to it during the day: look for beautiful art for your home, buy some flowers, take a picture of you smiling — the possibilities are endless. To honor knowledge, mentally list the things you learned during the day, just before you go to sleep. Try this little appreciation exercise every day, and you’ll soon start feeling more blessed than ever.

2. Focus on your destination but make sure to enjoy the ride as well.

Goals and desires are great because they keep us focused and give us a sense of purpose. But not everything’s about reaching a specific goal. Make sure to also enjoy the ride! After all, it’s during the process of achieving something that you make mistakes, learn, and become who you are. Arriving at your destination is wonderful, but aren’t the stories that happen during the journey the ones that stay with you the most?

3. Be prepared.

Like how you take precautions before going on a trip in order to enjoy it even more, you should also do that in your life’s journey. Being prepared for possible outcomes can reduce your stress and allow you to know where you’re standing. Take care of your health, invest on your self-growth, nourish your relationships, and last but not least, get your finances in order.

Being mindful about your economy will make you feel receptive to new experiences and adventures because the very act of being financially fit empowers women.

Life comes with many challenges and surprises, some of which we can’t really control, so let’s get up close and personal with the ones we do have a say over.

4. Respect your authenticity.

Everyone’s journey is different simply because each and every one of us is a unique human being with individual sets of qualities and flaws. This might seem obvious, but how many times have you compared your life to somebody else’s? It’s okay to admit it, we’ve all been there.

Sometimes we need to remind ourselves that we are authentic and that the path we’re on is not everyone’s cup of tea — but the great thing is, it doesn’t have to be!

We recommend that you stop comparing yourself to everyone else and get comfortable in your skin. Knowing that our journey is only our own makes all our characteristics and quirks even more endearing.

The next time you get caught playing the comparison game, try to relax by taking a deep breath and shaking the extra weight off your back. Opt for (self-) kindness and remember that you don’t have to be at the same crossroads someone else is … or at the very least, not now.

5. Follow your curiosity.

Following one’s curiosity is an undemanding way to find the things that make you feel alive and vibrant. Although having your priorities straight is always a good idea, being open to explore new things (from recipes, to clothes, to hobbies, to actual trips) is a great way to keep your inner light on.

Author Elizabeth Gilbert encourages curiosity and compares multi-passionate people to hummingbirds that move feely from flower to flower and from tree to tree. This approach usually creates complex, rich, and satisfying lives. Even if you know exactly what you want, it’s still okay to take on new adventures and projects once in a while.

Is there something you’re curious about that you haven’t tried? Be a hummingbird and go do it. It may just be exactly what you need right now.

Keep putting one foot in front of the other, and enjoy your journey at your own pace.

You’re the only you who exists. Enjoy your journey.

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[Motivation Monday] Life Is A Circle

PLJ Income - Life is a circle of happiness, sadness, hard times, and good times. If you are going through hard times, have faith that good times are on the way

Life’s seasons change. For all of us, life is a rollercoaster. Sometimes we’re happy; sometimes we’re sad; and sometimes we wonder how we’ve survived. The only thing we can know for sure is that life is full of both ups and downs.

Sometimes we anticipate life’s turns. Certain changes are foreseeable or desirable. You understand your child will eventually leave home for college, for marriage, or for a new job in another state. You hope to become a grandparent. Perhaps you’ve planned for the day you retire.

It’s the unexpected changes that are hard. No one wants to become a widow. No one wants to lose a job. Few actually want a divorce. These changes are painful. You didn’t expect or want them. These changes blindside you. Often they feel like more than you can bear.

Coping with life’s uncertainties is challenging. One change may lead to another. You may have to move. You may be forced to change goals, change jobs, change friends.

Yet there is one constant in the midst of change: our approach to it. We can choose how we react to change. We can elect to use change to better ourselves, or we can let it defeat us. Allow change to make you better. You can learn to handle this in a healthy way.

Start by releasing your resistance to it.

Let go of the past so you can change the future

Many of us hate change because we gaze at the past with nostalgia. We decide that the way things were must have been better. We do not see that focusing on our personal history stunts our future. Dwelling in the past is tantamount to inviting misery and unhappiness into your life.

Do not let the pain of change make you wallow in self-pity. Do not fear change.

Through change, you grow.

When something hurtful happens, allow yourself a moment to suffer the pain, then, rise. Move on. Pushing through pain allows you to circle back to joy.

Remember that there will always be something that can block your happiness; it’s how you look at that something that counts. Confronting your emotions and rejecting the negative will help you to move on toward your future. More important, when you focus on the future, you circle back to life’s good things.

Discovering a positive approach

Unexpected changes can catch us off guard, but change also gives us the opportunity to better ourselves. Our lives may not be what we had predicted; unexpected events may make us sad or mad. But if we focus on the negative, we lose life’s beauty. Instead of letting the sting of life imprison us in despair, choose hope.

You can have the life you deserve by embracing and rolling with change. When you make this conscious choice, you allow yourself the time and space you need to heal. You learn to appreciate the bad because it led to the good.

If it seems like the bad outweighs the good, sit down and make a list. Put the good on one side and the bad on the other. Over time, you will notice the columns balance.

Remember to keep smiling and you’ll feel better.

Make yourself a promise here and now. Promise yourself that you’ll stop doubting yourself and that you’ll believe in “full circle.”

You are the author of your life; you write every line of your story. Trust that your story will be a best seller. Be happy with who and what you are. You deserve it.

Embrace your friends

Good friendships are give and take. Sometimes when something bad happens, we learn the friendships we have are not what we thought. Develop the courage to see this so you know when to let old friendships go. Perhaps you need to take a breath and wait. Life has a funny way of putting the right friends into our lives at the right time.

Remember that even though you are going through a hard time, your friends may not have it easy either. Your process may include helping another who is going through similar changes. Your life returns to you tenfold when you focus on the needs of others.

Redefine your wealth

We often think about wealth solely in terms of finances.

But being wealthy is so much more. We can be wealthy in our friendships, in our pursuits, and in our life choices.

Wealth is relative. However, if you feel financially insecure, take these steps.

Think about the things you want to do monetarily, then set up a budget. If you’ve never made a budget before, there are many ways to learn. Tools online can help you create one. A financial advisor can also assist. All you need is pen, paper, and information about your income and your expenditures.

Decide where you want to be next week, next month, six months, and a year from now. Allow wiggle room for unexpected changes. Keep to your budget as much as you can. Set small goals and allow yourself small setbacks.

Welcome back to your life

Yes, it takes time to go from stressed to calm. It takes time to get comfortable with a ‘new’ life when the old one takes an odd, unexpected turn.

Take heart. No matter how bad things get, a moment will come when suddenly you’re on top and then over that seemingly insurmountable obstacle.

Your dedication and commitment will always see you through.

You’ll know when you’ve come full circle. It will be a beautiful moment. You’ll gaze back at the road you have travelled and think, “Wow, I made it through.” What once looked like a terrifying path, was actually a short, beautiful passage.

You have the strength and power to change the course of your. You can grow flowers with anything life throws your way. You may walk through mud to get to the garden, but oh, what a lovely garden. Life is an unending circle that includes and is enriched by both sadness and joy.

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[Financial Friday] Six Potential 401(k) Rollover Pitfalls

You’re about to receive a distribution from your 401(k) plan, and you’re considering a rollover to a traditional IRA. While these transactions are normally straightforward and trouble free, there are some pitfalls you’ll want to avoid.
Six Potential 401(k) Rollover Pitfalls

1. Consider the pros and cons of a rollover. The first mistake some people make is failing to consider the pros and cons of a rollover to an IRA in the first place. You can leave your money in the 401(k) plan if your balance is over $5,000. And if you’re changing jobs, you may also be able to roll your distribution over to your new employer’s 401(k) plan.

  • Though IRAs typically offer significantly more investment opportunities and withdrawal flexibility, your 401(k) plan may offer investments that can’t be replicated in an IRA (or can’t be replicated at an equivalent cost).
  • 401(k) plans offer virtually unlimited protection from your creditors under federal law (assuming the plan is covered by ERISA; solo 401(k)s are not), whereas federal law protects your IRAs from creditors only if you declare bankruptcy. Any IRA creditor protection outside of bankruptcy depends on your particular state’s law.
  • 401(k) plans may allow employee loans.
  • And most 401(k) plans don’t provide an annuity payout option, while some IRAs do.

2. Not every distribution can be rolled over to an IRA. For example, required minimum distributions can’t be rolled over. Neither can hardship withdrawals or certain periodic payments. Do so and you may have an excess contribution to deal with.

3. Use direct rollovers and avoid 60-day rollovers. While it may be tempting to give yourself a free 60-day loan, it’s generally a mistake to use 60-day rollovers rather than direct (trustee to trustee) rollovers. If the plan sends the money to you, it’s required to withhold 20% of the taxable amount. If you later want to roll the entire amount of the original distribution over to an IRA, you’ll need to use other sources to make up the 20% the plan withheld. In addition, there’s no need to taunt the rollover gods by risking inadvertent violation of the 60-day limit.

4. Remember the 10% penalty tax. Taxable distributions you receive from a 401(k) plan before age 59½ are normally subject to a 10% early distribution penalty, but a special rule lets you avoid the tax if you receive your distribution as a result of leaving your job during or after the year you turn age 55 (age 50 for qualified public safety employees). But this special rule doesn’t carry over to IRAs. If you roll your distribution over to an IRA, you’ll need to wait until age 59½ before you can withdraw those dollars from the IRA without the 10% penalty (unless another exception applies). So if you think you may need to use the funds before age 59½, a rollover to an IRA could be a costly mistake.

5. Learn about net unrealized appreciation (NUA). If your 401(k) plan distribution includes employer stock that’s appreciated over the years, rolling that stock over into an IRA could be a serious mistake. Normally, distributions from 401(k) plans are subject to ordinary income taxes. But a special rule applies when you receive a distribution of employer stock from your plan: You pay ordinary income tax only on the cost of the stock at the time it was purchased for you by the plan. Any appreciation in the stock generally receives more favorable long-term capital gains treatment, regardless of how long you’ve owned the stock. (Any additional appreciation after the stock is distributed to you is either long-term or short-term capital gains, depending on your holding period.) These special NUA rules don’t apply if you roll the stock over to an IRA.

6. And if you’re rolling over Roth 401(k) dollars to a Roth IRA… If your Roth 401(k) distribution isn’t qualified (tax-free) because you haven’t yet satisfied the five-year holding period, be aware that when you roll those dollars into your Roth IRA, they’ll now be subject to the Roth IRA’s five-year holding period, no matter how long those dollars were in the 401(k) plan. So, for example, if you establish your first Roth IRA to accept your rollover, you’ll have to wait five more years until your distribution from the Roth IRA will be qualified and tax-free.

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