Losing a job or choosing to leave one can have a major financial impact. From severance packages to tax implications and long-term financial planning, navigating career transitions requires strategy. In this episode, we’re breaking down the key financial steps to take—whether you’re facing an unexpected layoff or planning a career shift. My guest is Sibyl Steverson Slade, CRPC®, EDFP, a seasoned financial advisor and Certified WOSB with extensive experience in financial planning, business development, and economic empowerment. She specializes in helping individuals and business owners navigate financial transitions, including career changes, layoffs, and long-term wealth strategies. Contact her here:
www.linkedin.com/in/sibylslade https://www.linkedin.com/company/integrivest-wealth-advisors-llc https://www.facebook.com/people/IntegriVest-Wealth-Advisors-LLC/100085087950516/# https://www.instagram.com/integrivestwealthadvisors/ https://www.instagram.com/sibylsslade/
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Transcript
The other thing I would say that is really huge, regardless of the economy, is social capital. That’s the real capital. Let me tell you that. That’s the real capital. How strong are your relationships? We hear it all the time. Your network is your net worth. And so that’s true. So who are you connected to? Who are your centers of of influence? Who are your strategic partners? We should be nurturing those relationships all the time.
So anytime that we come to a space in place where we have to pivot, it’s our network we go back to, right?
Yeah.
And they’re the ones, they’re the ones who can vouch for us firsthand. They can attest. We don’t need the social proof from social media because we’re getting this firsthand attestation from someone who’s making this introduction and telling them why they should hire you for the position or the contract, etc, so that social capital is huge. So if you are introvert and you don’t like to connect and network, it’s behooved of you to do these things because people will speak up for you when they know you, they know your credibility. They will put your name in rooms that you may never even think of or consider.
Hey, hey, hey, Savvy squad. Welcome to another episode of the Dr. Sev Talks Money, YouTube and podcast where we empower women to manage money confidently and create a future of financial freedom, security and opportunity.
Losing a job or choosing to leave one can have a major financial impact. From severance packages to tax implications and long-term financial planning, navigating career transitions requires strategy. In this episode, we’re breaking down the key financial steps to take. Whether you’re facing an unexpected layoff or planning a career shift.
My guest today is Sibyl Stevenson Slade, a seasoned financial advisor and certified woman owned small business with extensive experience in financial planning, business development and economic empowerment. She specializes in helping individuals and business owners navigate financial transitions, including career changes, layoffs and long-term wealth strategies.
Sibyl, welcome to the Dr. Sev Talks Money podcast.
Thank you Dr. Sev. Thank you so much for just allowing me to share on your platform with you. I am just honored to be here with you today and especially with this very important topic. So thank you again for having me here today.
All right, thank you so much. It is my pleasure to have you share on this very timely and important topic. Before we dive into strategies and insights, I’d love for you to share your own journey. What inspired you to become a financial advisor and how has your work evolved to help people navigate big career shifts.
Very timely subject. I cut my teeth at the Federal Reserve bank of Atlanta. I spent 21 years there as a senior regional community development finance manager. And what that means, in layman’s terms, is I helped to ensure that all segments of the population had access to products and services that banks offered. I also helped to forge partnerships between financial institutions, nonprofit government, and academia, again to ensure that all boats somewhat rise together. And one of the things that I quickly noticed is that the wealth gap continued to persist. And we were doing a disservice to the marketplace because we really talked about home ownership as that kind of driving vehicle to build wealth while there were so many other things that were on the spectrum. And when the housing crisis happened, 2008 and 2009, I saw where a lot of people lost their wealth, especially other segments of the population lost their wealth, as well as the communities that they lived in.
And so for me, I knew then, once I retired from the Fed, that I would then go into financial services just to ensure that everyone has access. All the newer investors have access to all the products and services that everyone else does. Ironically, for me, I had an involuntary separation from the Fed. Well, I could say it’s voluntary. I could have looked for another job when I was restructured, but I took my YOLO moment and here I am on the other side of the equation. That was 11 years ago, believe it or not, this month that I left the Fed. So I know a lot about this subject that we’re touching on today, and I’ve been able to help my clients navigate through it as well.
Okay. Thank you so much for sharing. Now, I know as a financial advisor, you may have a disclaimer. So if you are wanting to go ahead and give that right now, please feel free. Feel free to do that.
Absolutely. Let me do that so that we can talk more freely here. All right. Securities and investment advisory services offered through OSAIC Wealth, Inc. member of FINRA and SIPC. OSAIC wealth is separately owned and other entities and other marketing names, products or services referenced are independent of OSAIC Wealth. There we have it. There’s my disclaimer.
Let’s talk.
Thank you so much. So you mentioned that you are one of these. You’re in this position where you were laid off unexpectedly, although you could have chosen to go another direction within the department for the restructuring. What are some of the most critical financial and professional steps one should take in the first maybe 30 to 60 days to stay afloat and regain stability after being laid off unexpectedly?
So I will say, and honestly, I will take it before the 30, 60 days out the gate, I’m going to talk about it from getting the package. So let’s, let’s, let’s start there because you want to plan for this landing, right? So really, you know, when I’m talking with clients or even with myself, I really did a financial assessment of where I was. And so what were my most liquid assets? Where there wouldn’t be tax implications or penalties if I had to touch, touch them. And then from there, you know, any monies that would do to me, what did that look like? So I could again know what my liquidity was like from an after tax standpoint. And then from there, what’s my budget? What’s a lean budget? You know, what were my must haves? Not my wants, just my must haves. How, how could I literally get by what is that number? And from there, making sure I knew exactly how many months I could cover my expenses based on the cash I had on hand. Then I looked at the severance package, did the same thing, look at the severance package, determine what my net was. Because obviously with the severance package, it’s going to be taxed a bit higher.
Usually 40% of it is taxed because it’s not earned income. I knew what that number was. Now, how many months can I go with this severance package to just cover my expenses? And so that’s kind of the first thing you want to do before signing the documents. But then, you know, now you kind of know, hey, I can make it 6 months, 8 months, 12 months. I know what my lean budget is meaning. These are must haves. This doesn’t necessarily include wants.
And then, you know, another thing that I’ve learned to do with my clients, which I didn’t have the luxury of doing myself, I’ll say for me, because I knew I wanted to come to financial services, I just started looking at opportunities to come into financial services and kind of knew what that startup cost was going to be, et cetera. But for those who may actually be going back into the marketplace to seek employment, you really need to know kind of what is the industry trend for the profession you’re in, right? And the industry. So what does that Runway look like for rehiring? And so there are a lot of tools out there to help you do that. Things like Glassdoor, ZipRecruiter, SHRM. There’s also the National Association of Colleges who puts out a publication. So kind of utilizing those tools to really know, can I get Rehired in three months, it’s going to be nine months. What did that time horizon look like? So now I can better match what the industry trend says for my profession with my dollars.
Yes, yes.
So that’s why I want. Go ahead. I’m sorry.
No, no, go ahead. You’re good.
No. So that’s why I really want to start before the 30, 60 and 90 days out. You know, really kind of look at the short and long in tandem so that I could feel confident. Right. While making these decisions, whether I’m forced to make it or it’s voluntary.
Yes. And I just wanted to reiterate the preparation beforehand because we are in an age right now where there are a lot of layoffs. We see Meta is laying off, all these big corporations are laying people off. So instead of waiting until we get tapped on the shoulder, we really should be preparing ahead of time. Whether we think our jobs are in jeopardy or not, we really should be doing some of the things you’re talking about is assessing the industry, assessing our liquidity. How long can we sustain our lifestyle? Or even if we cut down our lifestyle, how long can we sustain, sustain that bare bones lifestyle if we were to be laid off? So those are some really great points that you brought up. So AI and automation are reshaping industries. Whether we like it or not, they’re here to stay.
Okay, so some of the things that we’ve noticed in the news that’s leading or that they’re saying is leading to workforce reductions and shifts or AI and automation, how can professionals proactively prepare for potential involuntary separation caused by technological advancements?
So here’s one of the things that I learned. So I’m a little nerdish coming out of the Fed. I’ve gone through so many economic downturns, I began to start paying attention to patterns. Although there may be something, another idiosyncrasy that’s new from the previous time, there are still some things that kind of foundational, they continue. So anytime there’s a lull in the economy, there’s always going to be significant technological advances and the jobs that were here before may not all return. And so we have to open our minds to that. And so with that being said, as we start thinking about foresight when it comes to our industries or our professions or the economy in general, we really should always, even in our every day to day life, think about how can we improve the efficiency and effectiveness of the things that we do, whether that’s personally or professionally. Because sooner or later there is going to be some type of technological advancement.
And so if we’re always using foresight, then we will always embrace technology and leverage it, leverage it to benefit us personally, professionally and economically. So that’s the first thing that I would say. We should always be able to have that foresight to think about what needs improving and how can I improve it. If you start thinking along those lines, it’s really easier for you to grasp this innovation when it occurs or this disruption when it happens. Right. Because you know nothing’s going to really return to the same. The other thing I would say that is really huge regardless of the economy, is social capital. That’s the real capital.
Let me tell you that. That’s the real capital. How strong are your relationships? We hear it all the time. Your net worth is your network. And so that’s true. So who are you connected to? Who are your centers of influence? Who are your strategic partners? We should be nurturing those relationships all the time. So anytime that we come to a space in place where we have to pivot, it’s our network we go back to, right?
Yeah.
And they’re the ones, they’re the ones who can vouch for us firsthand. They can attest. We don’t need the social proof from social media because we’re getting this firsthand attestation from someone who’s making this introduction and telling them why they should hire you for the position or the contract, etc, so that social capital is huge. So if you are introvert and you don’t like to connect and network, it’s behoove of you to do these things because people will speak up for you when they know you, they know your credibility. They will put your name in rooms that you may never even think of or consider.
Yes, I, I so can agree with that. It’s the people you know, the books you read, the people you know, those are some of the things that’s going to advance us. And social media can be a facade. We see all the likes, we see all the follows, and to some extent they mean nothing because you’re connecting to some black box somewhere. But the people that know you know your, know your level of integrity, know your professionalism, the people that really know that, that you’ve really connected with, those are the ones who are going to put forth your name in rooms or make suggestions. If they get an offer to do something and they’re not able to, they’re the ones who are going to suggest your name. Like you did for me, Sibyl, you suggested me for A radio broadcast. So as you’re listening to this, I’m wanting you to look around at your network, see if there are people in your network that can help you and you can help them advance.
How can they strengthen you? How can you strengthen them? Because again, going back to our original conversation, you do not want to wait until you get the tap on the shoulder. You want to start doing that now, building out that network, building out that strong connection, that collaborative group of people that’s going to help you, and you can help them advance in whatever it is that they’re doing.
I’d like to, if I could. Dr. Sev, I still want to double tap again on that foresight piece, because the other part of that foresight piece is we have to continuously upskill. We have to be masters of our craft. Talk about having that, that foresight. And even with doing that, that means we should have a business plan or professional career plan that’s always taken into account where our next best move is. And in some spaces and places, it’s very important to make sure we’re diversifying our income. So as we have this business plan or this professional plan and we think about other ways that we can monetize the value of what we do, we need to start diversifying our income away from just that W2 income or those two W2 incomes or those one or two contracts, because we leave ourselves out there to be vulnerable and, and have economic shocks, because any of those things can go away.
And with that, that’s essentially putting all of your eggs in one basket. So if we’re going to put all our eggs in one basket, hey, I’m a financial advisor. Just give me all your dollars and we’ll put them in a thousand shares of Coke and you can call it a day if that’s all you want to do, and put everything in one basket. So diversification and having that foresight as it relates to our profession, the value we bring to the marketplace, monetizing that is huge. We should always be learning, always improving ourselves.
Yes, I am a student of education. I am always learning something. There’s not a day that go by that I don’t read something that I don’t. Even if I don’t do a certificate or a degree, which I have no intention of doing another degree. But I am always reading something on my industry or something that I can learn that could help me become a better podcaster or become a better YouTuber or become a better person. I’m always reading something. And as Sibyl said, I Can’t add to it enough that you prepare yourself. Growth doesn’t stop after high school or college.
It shouldn’t stop after high school or college. It should continue. Should always be growing and building yourself up, because you never know when you could take a branch somewhere else. You can branch off somewhere else and use that skill that you’ve built up. You know, not to say, go look for something that will make you money, because that’s something that may burn you out. You want to look at something that you’re passionate about, but you can still make you money. Okay. Because listen, passion doesn’t pay the bills.
Okay? So, yes, you’re passionate about it, but it can also make you money. So look around at your skills. Do some skills assessment if you, if you need to, to figure out what would be a good fit for you. And another thing that you could do is find organizations that will allow you to volunteer to test those skills to see how well you would fit into that circle or how well those skills can be parlayed into a pain position. So be open to all the options.
Right? Yeah. And know your, I mean, you know, even in your current employee, if you’re not concerned about your job or you do see the data, but if you have ideas where you can sell your ideas and show them how you can impact their bottom line, creating your own position. That’s the importance of knowing your value. It’s not about, oh, I can do all these duties. You need to know, are you increasing the bottom line?
Yes.
Right. So are you saving the money or are you growing their revenue? That. That’s how you show your value. And if we don’t know how we’re impacting that bottom line, it’s time for us to figure that out. Don’t just go in and say, oh, yeah, I can. I can close a thousand cases a quarter. That, that’s, that, that’s their metric. That’s what they want you to do.
You got to know your value.
Yes, yes. That you, you hit on a keyword value. Because that’s all companies care about. What value do you bring and how are you going to help us? Yes, I know they say you’re supposed to care about the employee, and they care to some extent, but their bottom line is they’re. They owe allegiance to the shareholders, and they want to know how you can add to that so that they can look good in the eyes of the shareholders. Thank you for bringing that up civil. So what tax implications should employees consider when making a voluntary career shift or facing an unexpected job Loss.
So you know, as I mentioned earlier, that severance package is going to be taxed. So that’s, that’s the first one. Now it can also happen as it pertains to your 401k if you have a retirement account, right? So if you have a retirement account and you have an outstanding loan, you just earned yourself a disbursement, right? So they’re going to take those dollars out first before you can get the remaining balance of your 401k. So that’s whether you’re going to need the 401k with the employer or whether you’re going to roll it over into IRA, there’s going to be tax implications for that loan disbursement. So, so those are some of the hidden things. Now, I know you’re referring to maybe some of the federal tax implications, but guess what, there are some personal tax implications too, right? And when I say that, I, I am talking about some out of pocket expenses. Your health care, if your healthcare plan was a part of your package that your employer paid for and maybe you had very small deductibles or premiums, that was great. Well, now that you’re no longer employed with them, you’re actually going to pay more in insurance.
And those are going to be expenses out of your pocket whether you take COBRA or whether you just decide to go to the health insurance marketplace or maybe you have a spouse that can cover you on their plan. But surely if they were individual and they’re converting to family, nine times out of 10, that’s going to be an additional cost to convert over to the spouse or the spouse and family plan. So those are some of the hidden costs with voluntary involuntary separation. And then some people sometimes, and I know you weren’t going down this path, but I’ll share it when you’re out there in the job market under the voluntary scenario, because you’re about to jump ship. A lot of times we are chasing compensation, compensation. So we’re looking at the compensation that we’re receiving. Okay, so now I’m going to make 5,000 more, 10,000 more in income. So I’m going to go take this job over here, not realizing that maybe the job where there was lower income that had better fringe benefits is better package than going to where the higher income is.
And now your premium is on healthcare. All your other benefits have higher out of pockets. So now you’re literally making less over here from a net perspective than you are with that, that first employee who may have been offering you less per hour you think about tuition reimbursement. Let me just say I don’t have any student loans. I floated my student, my tuition on a credit card. So I got my reimbursement back from the credit fed. Right. So those kind of perks, you know, it was worth me staying.
Right. Because I don’t have student loan debt. So again, you got to look at the total package, including the fringe benefits and see what that bottom net net is for the opportunity.
Yes. And that’s one of the things as, as an accredited financial counselor, we do when you get an offer, we’re going to evaluate both dollar to dollar for benefits, for take home, pay for vacation, all of that. So as Sibyl said, sometimes more money doesn’t need at the new job, doesn’t mean more money in your pocket because of other things that you’re not considering. So never ever just look at the top line number to make a decision. Always look at the details.
Yes.
For those considering a voluntary career move, whether for entrepreneurship, new venture or early retirement, what financial planning steps should they take to ensure a smooth transition?
So, you know, that happens a lot nowadays because a lot of people are looking at, oh, well, you know, I can do the same thing and make more money as an entrepreneur or consultant or dual entrepreneur, whatever label you want to put on it, depending on how they decide to move into the marketplace. The first thing, you know, I work with my clients on is really understanding what are your personal expenses? Do you have 12 months of that? And what will be your business expenses? Do you have 12 months of that on hand? If you don’t have those things on hand, then I usually deter them and ask them, wait until they do. Why do I say that? Because that first year of business, even as a consultant, if that’s the route that they’re going, that first year of business, you’re going to be so busy working in the business, when you look up, you’re at the one year mark. And if you don’t have reserves to take you from there, the business can essentially close. I have had clients who had to go back to work, literally, because that’s what happened. They decided, oh, well, I feel comfortable, I’m making enough money right now. But you don’t have the track record of making this money year over year. 1/4 or 2/4, or 3/4, even 4/4 is not enough for you to leave.
To leave your employment, you really need to have your historical data from your financial statements from up to three years. Honestly, two years could, you know, maybe you’re in A great position in two years is fine because you actually have enough emergency savings on the front side of you too to be able to make the transition. But elsewhere, stay on that treadmill, stack that cash.
Yes.
Then make the transition.
Yes. And listen, there’s nothing wrong with going back to work, if that’s what you need to do, okay, I know they glorify entrepreneurship out in these Internet streets, but your bills need to be paid. And if you need to go back to work, do that. Do whatever you need to do for you and your family and forget about other people because they’re not paying your bills. Okay? So as we get ready to wrap it up, what would you like for people to take away from our discussion today?
So really, you know, honestly, and this probably feels like I’m self promoting, I’m not. It doesn’t matter who you connect with, make sure you speak to a financial professional to assist you with making any of these decisions. Your HR person is checking compliance boxes. That’s their role, to make sure that everything, all the decisions you make are compliant. They don’t know your financial situation. They don’t know economically if this is a huge disruption or not. Your financial professional can help you through that. What are the tax consequences? How’s it impacting your family emotionally? What, what are your short term and long term goals? Your financial professional is not going to ask all those things and they don’t even have the, the skill set to do those things.
Again, they’re checking compliance boxes. So what I would urge you to do is take that packet, review it with a financial professional before making all of your final decisions. And I’m not taking anything away from the HR profession. I’m just saying that’s not their skill. They’re a benefits professional. That’s it. They’re not financial planners.
Yes, and I concur. So I know I’m going to be putting in the show notes and on YouTube also all the places where they can contact you. But for somebody who may be driving and listening, what is a quick place that they can contact you? The best place they can contact you if they want to.
So the best place to reach me is my website and that’s integrealthadvisors.com and that’s I N T E G R I V E S T Wealth advisors dot com.
Okay. And I will definitely have all of our contact information again in the show notes. We like to wrap up with a fun question and my fun question for you is if you were to meet anyone living or dead and have lunch with them. Who would they. Who would that be and why?
Michelle Obama.
Okay.
I just love her story. I love her grit. Ahmm. And she’s always inspiring. Every time I’ve seen her, I’ve had an opportunity to see her a couple of times. She’s always inspiring. And it’s not just about the professional side. I mean, when she talks about marriage, I mean, everything I felt like, she’s my sister, our family member. She’s just so inspiring in so many aspects of life, very refreshing. You know. That’s why, she’s just inspiring. I’ve never left a room that she has sat in where I wasn’t inspired.
Yes, very down to earth. Alright.
So, thank you again Sibyl for coming on the Dr. Sev Talks Money podcast and sharing with us. And folks, you’ve heard where you can contact her and again, I will have all of the other contact information in the show notes where you can find out all about her and hire her to examine your package. Again, we are seeing a lot of layoffs in this economy and there is more to come. Unfortunately. So you want to make sure you hire Sibyl or similar professional to look at your package and help you plan ahead so that you are not scrambling at the last minute.
And as wrap up, please remember to subscribe to the podcast on YouTube. If you listen on Apple Podcast, leave a review and a rating. If you listen on Spotify, leave a rating. And as you are completing your ratings, remember that we love the number 5. Until then, this is Dr. Sev saying stay savvy and we’ll see you next time.
