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Getting Downsized: Your Financial Options Before and After

Getting Downsized: Your Financial Options Before and After

October 02, 2020
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“Downsizing” is a word that no one likes to hear or say. If you’re the deliverer, that means your company is likely going through an economic rough patch. If you’re the receiver, you know that your lifestyle might be about to change.

As a Bakersfield, CA resident since 1993, I’ve navigated many ups and downs with clients; some have been the business owners forced to make a change and some have been the employees who have heard news they weren’t expecting. Our community has seen transformations in the healthcare industry as well as oil and energy – which is why planning for a rainy day has become an important part of my financial planning process.

After 31 years in the Bakersfield, CA financial industry, I have learned that when a newly downsized employee walks into my office, it’s important to look at the facts and then guide the client through the decisions that need to be made. Fear often lies in the unknown, so examining exactly where the client is financially is helpful.

However, even more helpful is looking at a client’s finances before the unthinkable happens. This is why.

Build a Financial Roadmap

Downsizing or job changes in general can happen at any time without warning. The best plan to mitigate some of the pain is to take the time to build your own Financial Roadmap. Sit down with a qualified financial advisor and review your current situation, look for opportunities and challenges, then utilize strategies designed to address risks. Start with your emergency fund: Do you have sufficient funds to sustain your family for 6 months in the event of a job change or long-term illness? We’ll work through that and develop a plan.


Know your Options Now

If you think your company might be downsizing in the future, let’s take a look at some of the actions you can take now. Rather than panic, take charge of your situation. A financial advisor can help you determine what options you have, and an impartial, third-party point-of-view might help you discover possibilities you might not have considered.


Take a Deep Breath

If the downsizing has already happened, it’s time to regroup and create a plan for going forward. Starting fresh can be a good thing for many people; this could be your opportunity to explore new careers and business ventures.

Whether you’ve already experienced a job change, you’re worried one is on the horizon, or you want to make sure your family is protected should the unthinkable happen, Charpentier Wealth Strategies is here to answer your questions and help guide you to a smoother financial path.

Debbie Charpentier has been serving clients since 1989 by using a holistic, comprehensive approach that helps clients create the life they value and the legacy they envision. Charpentier Wealth Strategies is a Bakersfield, CA Financial Planning practice that offers fee-based financial planning services. To contact Debbie, email Debbie.Charpentier@LFG.com.. charpentierwealth.com CRN-2789104-102219