Down-sizing is an unfortunate reality in the modern business world, even when you are over 40 years old. How can you regain traction in your financial life?
Here are five significant financial facts to consider when starting a second career after 40 years old.
Starting Second Career
You are no longer a “spring chicken” and starting over can be a challenge. If you adhere to these career tips, you can optimize your chances for success. You need to be realistic, but also energetic. Follow these five significant facts to get your second career, off the ground.
1. Accrued Benefits
While you work, you accrue benefits that could include stock options, a 401(k) plan or pension. You have many options for your 401(k) plan, including cashing it out or rolling it over. Remember, that these include both yours and your employer’s contributions.
If you cash out, you must pay 20% federal withholding taxes plus a 10% early withdrawal fee. The 401(k) rollover allows you to re-balance the investments in the portfolio. This makes sense because your life has changed – you want your assets to reflect your new life.
2. Rethink Mortgage
You set up your housing finance based on your employment expectations. When you are let go, you might want to change your housing loans, consider refinancing or even getting a HELOC.
3. Keeping Skills Relevant
You might have started your job, a decade ago. It pays to update your skills. Use downtime efficiently.
4. Prime Working Years
After graduating from college, you might only qualify for certain entry-level positions. If you figure that your prime working years are from 22 to 65, you are in your mid-life when fired at 40. But, you do have valuable experience that allows you to qualify for certain higher level positions.
5. Experience Pays
Do you know how many college graduates would love to have your experience? Now you can be eligible for a couple of these high-paying jobs: Financial Analyst, Fundraiser or Social Media Manager. You have paid your dues, now cash in with a higher paycheck.
Losing your job over 40 can be a shock, but take advantage of the situation to find a better job. You are mature and experienced. Find a second career that pays you top dollar for your valuable, accumulated experience.