Advice for the Newly Unemployed, Part 2

It’s my pleasure to introduce Belinda Plutz as the Passionate Planner’s first guest blogger.  I’ve known Belinda for more than two decades, and over the years have come to realize that she possesses such an amazing combination of characteristics – she’s insightful and direct yet diplomatic, business-like but empathetic – that there can be no better individual to speak to the often highly stressful and emotional task of effective job hunting in a slow-to-recover economy.  Belinda is the person behind the company, Career Mentors of New York City.  If you need individualized help you can reach her by telephone at (212) 947-3180 or by email at careermentors@comcast.net.
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FIRST STEPS
by Belinda Plutz of Career Mentors.

So, you’ve lost your job.  While you’re probably very eager to “get out there” and “hit the street” there are quite a few practical, yet very important things that you need to do before you begin a job search. Working on these concrete actions can help you start moving; it is a way to “get your act together,” especially when you feel paralyzed by the lay-off.  Once these things are accomplished you can more readily, and effectively, focus on your job search.

TEST YOUR EQUIPMENT

Make sure your computer (both hardware and software), printer, internet and email access, telephones and answering devices (landline and/or cell) are all up-to-date and in excellent working order.  Purchase a back-up printer cartridge to avoid running out of ink at a critical moment, i.e. printing up your resume.  If you don’t know how to use any of your equipment – now is the time to figure it out.

VOICEMAIL

Record a clear, easy to understand landline and/or cell phone voicemail message with no kids, no pets and no comedic routines.  The message should be as professional as possible.  Give your name and/or your complete telephone number (including the area code) to make it easy for callers to be sure that they have reached the correct party.  Not changing the computerized phone message (typically the default program on your answering machine or service) may give callers the impression that you either are not technologically savvy enough to change it or simply too lazy to do it; definitely not a good first impression.

EMAIL

Establish a professional email address that projects the right image. No nicknames, birthdates or cutesy personal references.  For example, using “hotplanner@hotmail.com” clearly gives the wrong message.  Because email is a primary method of communicating with potential employers, it is very important to get this right.

RÈSUMÈ

To update your résumé begin by doing an analysis of your recent and previous positions.  Make sure that you acknowledge your accomplishments and functions, especially those that are relevant to your future job focus and those that you like or enjoy.  Highlighting experiences or activities that you hated doing will not get the results you want.  Do not lie, or even stretch the truth just a little bit – dates of employment and job titles are easily checked.

Create an easy to visually scan and read document.  Bullets are better than paragraphs.  Your résumé needs to be accomplishment focused, as well as “keyword rich” and “number rich” (e.g. sales results, staff supervised, budget figures).  It must be perfectly written with no typos, grammatical errors or mistakes; have someone (or a couple of someones) proofread it for you.  Test how it prints and also how it transmits electronically before you begin using it.

PERSONAL BUSINESS CARDS

Have personal cards made with all your contact information so that you can offer it to people or respond when someone offers you their card.  You will want them for casual connections as well as formal networking events. Carry a few with you at all times. If you run into someone while out walking, you will make a positive impression if you can hand them your card (as opposed to having to write your contact information on the back of a store receipt).  The image that you want to present is that you are professional and always prepared. And don’t even consider “freebie” business cards with the name of the printer on the reverse of it; remember, first impressions…

SELF INTRODUCTION

Carefully script the self introduction you use to answer the standard American social question, “So what do you do?”  Your response needs to be positive, because what you say first is what people will remember about you. Do not start with the news that you were recently laid off — that should be the third or fourth thing that people hear.  Beginning your response with, “I just lost my job…” focuses on your current non-work situation, not you.

Your message needs to be consistent and clear with virtually everyone getting the same message.  And if you can frame yourself without clichés, in a “features and benefits” kind of way, not just “title” and “function,” it will be far more interesting (and memorable).  This self introduction is one that you will use verbally, but you will also need to create a written paragraph that you can drop into emails.

This is worth repeating: What you say first is what people will remember about you.  You are helping to craft their impression of who you are and what you do, and it is up to you to present yourself in the most professional and appealing way.

NETWORK LIST

You may not realize this, but you already have a “network.”  Your network is all the people you know, and have ever known, and all the people you have ever worked with in any capacity.  Begin putting your list together – who should you be reaching out to and connecting with.  You can network for information, connections, insight and advice or any combination of those.

People will want to help, but you have to have realistic expectations; no one is going to hand you a job just because you need or deserve one.  In tough times (like now), it is very difficult to network directly “for a job.”  But, since companies do not hire people – people hire people – it is critical that you make connecting with people a major priority.

ONLINE PRESENCE

Having a professional social networking presence can be a good way for people to find you and for you to reach out to people.  If you are on one or more social networking websites, make sure that the message and image you project are the ones that you want potential employers to see… because they are definitely looking.

REFERENCES

Even though many companies have a “policy” of only releasing titles and dates of employment when called for a reference, you should be prepared to give a prospective employer the names, titles and telephone numbers of three or four pre-screened people who are connected with your most recent and previous jobs who can speak about your performance.

It is both flattering and courteous to let people know in advance that you want to list them as a reference.  It is also a great way to network.  Give each person a copy of your current résumé and review the pertinent information with them. Reach an agreement with them regarding dates, titles, responsibilities, achievements, etc., that you would like them to address.

Once you have all of these things in place, give yourself credit for accomplishing them. You are now in a great position to put all your energy and attention into a successful job search.

© Career Mentors, Inc. 2009

To be continued.

Advice for the Newly Unemployed, Part 1

Losing your job and becoming one of the growing number of unemployed can be a shock to anyone.  Even if you weren’t all that happy with your position, at least you had one.  But once the shock of losing a job wears off, there are several things that you need to attend to.  Some are obvious, and some require a bit of analysis.

File for unemployment benefits

First, you will want to file for unemployment benefits.  Each state sets its own benefit amounts, eligibility requirements, and benefit length.  Benefit amounts are based on a percentage of what you made during your last year of employment, up to the maximum in your state.  Remember that unemployment benefits, like regular income, are taxable.

To determine your benefits, inquire at your state unemployment agency or, if the option is available to you, file for benefits online.  Still, understand that it can take up to a full month before you will receive your first unemployment check.

Verify your termination benefits

The second thing you need to do is to verify what termination benefits your employer will provide.  You may be entitled to severance pay, continuation of medical benefits, and possibly support in finding your next job.  Take advantage of anything and everything your former employer offers in the way of help.

Obtain health coverage

Speaking of health insurance, you need to maintain your existing coverage or find a replacement insurance policy.  If you worked for a company that had 20 or more employees, you’re eligible for COBRA.  This federal law ensures that you can continue coverage for an additional 18 months, but you must pay the premiums for it yourself.  With no employer contribution you may be quite surprised at how much money your continued coverage will cost you. 

It’s important, especially if you have a pre-existing health condition, that you not let your health insurance lapse or you may find that pre-existing condition will not be covered under a new plan.

The recent federal stimulus program may cover 65% of the COBRA premiums for up to nine months, and that is certainly worth looking into.

Decide if you need life insurance

Your employer might allow you to continue to participate in the company’s group life insurance provided that you pay your own premiums.  But life insurance might not be worth the expense if you have no dependents or your children are grown up and self-sufficient.

If you do want to keep your coverage through your former employer, you may be able to find less-expensive term plans on your own, though it will take a little homework.

Review your budget

After taking care of the necessities of health and life insurance coverage you may want to evaluate your budget to see where you can cut expenses. Depending on your field, your flexibility, how well you network and a host of other things – including a little bit of luck – your job search could take a year, or even more.  That should be motivation enough to look for ways to save money.

Analyze your retirement plan options

What you should do with your retirement savings accounts is one item that requires extra care and analysis.  If you withdraw funds from your 401(k) or 403(b) employer-sponsored savings plan, you will pay ordinary income taxes on that amount, and if you’re less than 59½ years of age, incur an additional 10% penalty.

If you transfer your employer’s retirement plan to an individual IRA by “rolling it over,” you will not have to pay any income taxes.  Moreover, you can likely build a better portfolio, since you will have more investment choices in your IRA.  Do this with care, by doing a trustee-to-trustee transfer.  And by all means, consult a fee-only advisor to avoid high up-front commissions.

Once your money is safely ensconced in an IRA, you may be able to tap it without penalty, if you need it to cover large medical expenses or pay medical-insurance costs.  For additional details, read this article.

How best to approach your job search and other tips on how to survive your unexpected unemployment will be continued in Part 2.

I Told You So!

“Stock picking and market timing are expensive, risky, and ultimately futile exercises.” – William Bernstein.

As you may recall, on Friday, March 6th I wrote that it was a mistake to be scared out of the stock market.  The stock market actually hit its bottom on the next business day, Monday, March 9th.  Since then, prices have soared, not in a perfectly straight line, true, but the increases have indeed been spectacular.

What does that mean?  That I can predict stock market prices?  No, absolutely not.  That remains an “unacquired” skill.

What it does mean, though, is that I follow a buy and hold philosophy, because getting out of and into the stock market again and again is a losing strategy, simply because you are not going to do it well.  One benefit of working with a fee-only financial advisor is avoiding the emotional swings that accompany volatile stock prices.

Please read my March 6th post, Nobody is Buying Stocks?  in which I mocked the total negativity that was seemingly everywhere in the media.  I pointed out just how overblown the language used at the time was:

“With so much uncertainty, investors are parachuting out of companies…”

“No one is taking a back-seat approach. Everyone is just selling.”

“It’s like an unending nightmare.”

Please take a moment to read the entire post (if you haven’t already), but here is the conclusion if time is pressing:

“No one knows what tomorrow will bring, but unless capitalism ceases to function, stockholders will be rewarded in the long term for owning stocks and for taking risks. Yes, there is risk in owning stocks, as we have recently experienced. Since we’ve already seen the risk, how about staying around for the reward?

An old Wall Street proverb is that “Nobody rings a bell at the top or the bottom of a market.”

Are you waiting for that bell to ring?  Don’t.”

As I pointed out, since March 9th stock prices have soared.

Understand, though, stock prices can go down again.  In fact, I can  guarantee that.  Once again, I am not clairvoyant, and I rarely make predictions.  But, I have counseled a buy and hold strategy for many years. There is no evidence that anyone can get in and out of the market at the right time and improve on a buy and hold approach.

Heaven help the person who got out of the market earlier this year.  The March 6th post quoted financial advisor Bijon Mishras who said, “I want to wait for a firm turnaround, and be as safe as possible.” I wrote, “Whoa, Nelly. Remember this quote and see how it turns out.”  So, Bijon, is now the time to get back in?

On March 16th I wrote a series which started with Is Buy and Hold Not Working? Part 1.  I said that timing the market was impossible, “The evidence shows that most investors get it wrong over and over again.”

“Historically, stock markets have had sharp increases following a bear market.  The difficulty is identifying when that move is for real.  Bear market rallies, bear traps, etc. tend to keep investors gun-shy, so a sustainable bull market rally will only be identifiable in hindsight.

Nevertheless, individuals who keep their investments in cash or Money Market funds will miss out on most of the move.”

Conclusion

I’ll stick with what I said on March 27th, “Given what does not work, what is the recommended approach?  In my opinion, it is a diversified, low cost, buy-and-hold portfolio matched to your time horizon and risk tolerance.”

A good advisor should help you do that and also avoid the “big mistakes” of buying high and selling low.  Is that worth the annual amount you pay a fee-only advisor?  I certainly think so.  Do the math.

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Politics without the Shouting

For someone who calls himself the Passionate Planner, I think you’ll agree that I’ve been very cautious on this blog.  I have not discussed politics, because I followed the advice given to salespeople, “Never discuss politics or religion.”  As I heard it years ago, you may win the argument but you’ll lose the customer.

Another reason I don’t discuss politics with my clients is because, when meeting with them, we have more important things to go over such as personal challenges, investments, estate planning, saving for college, etc.

But the latest political news is that people are shouting down elected representatives at town hall meetings when the issue of health care reform comes up, as it invariably will.  I find that extremely disturbing, because it is terribly corrosive of the democratic process. 

So here is my modest attempt to restore civility to political discussion.

Advice to liberals: Read or listen to someone who is a conservative.

Advice to conservatives: Read or listen to someone who is a liberal.

I believe that listening to someone who disagrees with you is hardly ever done.  People who tune in to Bill O’Reilly generally do not also listen to Keith Olbermann, and vice versa.  To do so would likely raise one’s blood pressure and possibly make one ill.  Because we primarily listen only to people we agree with, we essentially live in separate universes, with not only different political opinions, but different political facts.

But my advice is to start out slowly, or in small doses.  It’s just like exercise; you don’t want to overdo it at first and risk sidelining yourself to an injury. If you love Glenn Beck, do not watch the Rachel Maddow show.    Let’s be realistic.

Herein then are my humble suggestions to change the political dynamic.

If you are a conservative, it is very likely that you read the Wall Street Journal.  Buried in the op-ed page is a weekly column by Thomas Frank, who I suppose could be called the “token liberal” for the Wall Street Journal.  Read his Wednesday column for a different viewpoint.  And even if you don’t get the New York Times, I would definitely seek out the opinion of Thomas Friedman.  As my cousin Dahlia said, “Friedman is brilliant, even when he is wrong.”

If you’re a liberal, you probably read the New York Times.  I suggest that you read David Brooks, because he is the conservative liberals love.  And in my opinion, Peggy Noonan, who writes a column in the Saturday Wall Street Journal is always worth reading.

I’m sure there are many others, but we have to start someplace.  I also like the Charlie Rose show, because it is what I call a “no shouting” zone.

Finally I’d like to put in a good word for Joe Scarborough, who has a morning program called Morning Joe on MSNBC.  He certainly gets good guests.  Joe is a conservative (a libertarian, if truth be told) and though I frequently disagree with him, I find him engaging and likable.  You can see a recent interview of him on the Charlie Rose show, because Scarborough is plugging his new book.

According to Scarborough, liberals will listen to him and engage him in debate, simply because he doesn’t call President Obama a “communist” or Justice Sotomayor “a racist.”  Sad to say, that makes him unusual among some right wing TV personalities.  Truly, I wish there was more civility and less name calling.

My favorite quote of his is about his decision to live on the Upper West Side of Manhattan, a liberal bastion if ever there was one.  He says that he loves the Upper West Side, because little old ladies come up and hug him.  They have never met a Republican before!

Cute.