While we’d love to believe that employment is forever, the reality is these days, things can always change. Here are 5 things you should do if you experience Johnson & Johnson layoff.
But before we get into it… We are financial advisors in Morristown, NJ, providing financial advice for New Jersey residents as well as folks across the country. Before we get started, you may want to check out these New Jersey finance blogs we’ve written, if they apply to you:
A checklist for moving to Morristown, NJ from NYC
What is the average income in New Jersey?
What is the New Jersey 529 Plan and should I use it to send my kids to college?
Should you buy a New Jersey vacation home?
40 questions to ask a financial advisor in New Jersey
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With the transient nature of employment these days, lay offs have unfortunately become a part of working life in America. If you’ve been laid off from Johnson and Johnson, we’re so sorry to hear of this unfortunate news but the upside is that there are some things you can do to minimize financial stress. Check out these tips below.
#1 Secure health insurance
With medical costs escalated to spectacularly high levels, getting health insurance for yourself and your dependents is one of the first things you must do after an involuntary separation from Johnson & Johnson. There are two paths you could take.
You only have 60 days to enroll, so make sure you look into these options in a timely manner:
- Get a COBRA Plan. This is a temporary benefit offered by the US Department of Labor specifically for people who are terminated from employment.
- Get a Marketplace Plan. Usually you are only able to elect such coverage during open enrollment, but losing your job means you are qualified to receive coverage, should you choose to do so, outside of this period.
#2 Consider rolling over your Johnson & Johnson 401(k)
Did you check out our blog about JNJ company benefits, by the way? If not, give it a read first before moving on.
Any money held in your account at the JNJ 401(k) plan can potentially be rolled over to another qualified retirement plan such as an IRA. This allows you to consolidate your assets, making it easier to manage. You may also gain access to different or lower cost investments than what the options are in the Johnson & Johnson 401(k) plan.
It’s important that your 401k plan be rolled over without incurring tax consequences, so if you aren’t sure how to do this it would be a good idea to contact your CPA or a financial advisor.
#3 Assess your life insurance needs
Many people get their life insurance through their employer and JNJ employees are no different. However, if you find yourself laid off from Johnson and Johnson, you are now beholden to procure life insurance from elsewhere.
Employer-provided life insurance is often capped, usually people are underinsured anyways. As you search for a new policy, it’s useful to think about what your life insurance needs may truly be.
(By the way)
Can we take a brief pause for a moment?
It is useful, as you contemplate questions such as what to do with your retirement savings and life insurance, to have an overall plan guiding your decisions. If you have questions about how to create one, let’s set up a time to talk.
#4 Understand your total compensation
We’re about to toss a little nugget of radical honesty at you.
Are you ready?
It’s not uncommon for us to see JNJ employees who have no idea of what they are truly getting paid.
Shocker!
You may have some Johnson & Johnson stock options and the paperwork you were given talks all about vesting schedules, holding periods, and all sorts of esoteric rules and regulations.
Yuck!
But don’t let that stop you from gaining clarity about how much you are really being paid, all in. When you negotiate for your next position, you want to make sure that you are aiming for the true level of compensation that you deserve and are worthy of.
#5 Don’t overestimate severance
Getting laid off can be traumatic and what is even worse is the financial stress that can ensure thereafter. To minimize financial anxiety, know what your Johnson & Johnson severance is and plan out how long you can make it last. Be careful not to be overly optimistic or lax when you do this.
Unemployment has become normalized in our society with terms like “NILF” or “not in the labor force” to make people feel okay about not working. As financial advisors, we offer a different view. While time off may allow the time to travel, spend time with family, and relax, it’s useful to note that the longer you are out of work, the harder it is to get a job.
According to the SEC, the JNJ severance pay schedule is four weeks of pay, if you do not sign a severance agreement. If you do sign a severance agreement, you will receive two weeks of base pay per year of service with a minimum of six weeks of base pay. Other minimums and maximums apply.
The financial reality is, therefore, that you’ll probably only be replacing a few months of salary. It can’t hurt to go about your job search expeditiously, as being penniless on top of being unemployed is a tough pill to swallow and should be avoided if possible.
Saving is great – but how do I retire?
One of the most common financial questions we get is about how to retire from JNJ. Our role is to help people optimize their retirement savings, and usually that revolves around three key tasks:
- Creating an income stream from available assets
- Mitigating taxes (whether they are taxable distributions from a 401k plan or otherwise)
- Doing the right thing with your estate plan
By creating a financial plan and roadmap for how to manage the assets that you have saved through the Johnson & Johnson savings plans or otherwise, we help clients convert their savings into an income stream for retirement.
Minimizing the stress of getting laid off from JNJ
We hope our blog on Johnson & Johnson layoffs has somehow helped to lessen the strain of this unfortunate occurrence. Prudent financial planning and investment management are important at every stage of the game, and even more important in times like these.
We are financial advisors in Morristown, NJ serving the local community and beyond. If you have questions about retiring in New Jersey, moving there, affording to live there, or (like us) are just plain old Bruce Springsteen fans, reach out and send us a message.
Disclosures
Glassner Carlton Financial has no affiliation with Johnson & Johnson. Glassner Carlton communicates with its clients and the public in writing and verbally about Johnson & Johnson employee benefits, but there is no guarantee that the information presented on this website and its associated links is accurate. The information presented herein is subject to change at any time, and Glassner Carlton is under no obligation to update it. For questions regarding your Johnson & Johnson retirement or employee benefits, please contact your employer.