Advice for Clients: Before the Layoff

With the recent uncertainty in the mortgage industry, you're likely to have some clients -- or prospective clients -- facing layoffs. Here's some tims for your client newsletter or for a news release

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The time to prepare for a layoff is before it happens. It is important to be prepared in case you're laid off. Consider doing the following:

Review Your Severance Package. Make sure you understand if or how long your health insurance will continue if you're laid off. Think about "selling back" any extra vacation or sick days you have to the company in exchange for pay.

Roll Over Your 401k Into an IRA. Unless you have no other option, don't liquidate your retirement account if you're laid off. You'll have to pay taxes on whatever you take out, plus possibly a 10 percent withdrawal penalty fee -- and the lost value of that money can never be replaced.

Raise Your Deductibles On Your Insurance Policies. That way, you can lower premiums. However, even if you're out of work, don't cancel any policy in an attempt to save money.

Keep Your Resume Updated. If you are laid off, you'll have to move fast. Make sure your resume is up to date at all times.

The Best Time to Look For Work is When You Have Job. Don't wait for the ax to fall. Start looking for another job now. A job search takes time, and the earlier you get started (particularly if "the writing is on the wall," so to speak, about your company's future), the better off you'll be.

Consider Temp Work. There is a big market for part-time, temporary and free-lance work in almost every job market. These kinds of assignments will put quick cash in your pockets while you look for something more permanent.