The recent wave of layoffs in the tech industry has been unsettling for many professionals in the San Francisco Bay Area. If you've been impacted, you might be feeling a mix of emotions—uncertainty, frustration, or even relief. While this transition can be challenging, taking a strategic approach to your finances can help you regain stability and position yourself for future opportunities. Here are key steps to consider as you navigate this period:

1. Assess Your Immediate Financial Situation

The first step is to get a clear picture of where you stand financially:

• Severance Package: Review the details, including any continuation of salary, benefits, stock vesting, and unused PTO payouts. If something isn’t clear, consider consulting a financial planner or employment attorney.
• Unemployment Benefits: File for California unemployment insurance (UI) as soon as possible. The state provides up to $450 per week, which can help bridge the gap while you search for new opportunities.
• Emergency Savings: If you have an emergency fund, now is the time to determine how long it can sustain your current expenses.

2. Evaluate Health Insurance Options.

Losing employer-sponsored health coverage can be a major concern. Consider your options:

• COBRA: Extends your current health plan for up to 18 months, but can be expensive.
• Covered California: You may qualify for subsidized plans depending on your income.
• Spouse’s Plan: If applicable, joining a partner’s plan may be the most cost-effective choice.

3. Manage Your Stock Options and RSUs.

If you have stock options or RSUs, it's crucial to understand their terms:

• Vesting Schedule: Check if any unvested shares are impacted by your departure.
• Expiration Dates: Some stock options require action within 90 days.
• Tax Implications: Selling vested shares can trigger capital gains taxes, so plan accordingly.

4. Reevaluate Your Budget.

Adjusting your spending can help stretch your financial resources:

• Identify non-essential expenses that can be temporarily reduced or eliminated.
• Prioritize necessities like rent/mortgage, food, and health insurance.
• Consider negotiating bills such as utilities, subscriptions, and loan payments.

5. Maximize Your Job Search Resources.

Many tech companies offer career transition assistance—take advantage of it:

• Networking: Leverage LinkedIn and local industry events to connect with recruiters and former colleagues.
• Upskilling: Consider certifications or courses that enhance your marketability.
• Freelance & Consulting: Short-term contracts can provide income while you explore full-time opportunities.

6. Plan for Retirement Accounts.

Leaving a job often means deciding what to do with your 401(k):

• Keep it with your former employer (if allowed).
• Roll it over into an IRA or a new employer’s plan when you find a new position.
• Avoid cashing it out unless absolutely necessary to prevent penalties and tax consequences.

7. Take Care of Your Mental and Emotional Well-Being.

A job loss is not just a financial event—it’s a personal and emotional one. Take time to process and seek support from family, friends, or professional counselors. Remember, this transition is temporary, and many professionals emerge from layoffs with new, even better opportunities.

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Final Thoughts.

Being laid off can feel overwhelming, but with a proactive financial strategy, you can navigate this period with confidence. If you need personalized financial guidance, working with a financial planner can help you make informed decisions and build a secure path forward. The Bay Area tech industry is resilient, and so are you—your next opportunity is out there, and with careful planning, you'll be ready to seize it.

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About

‍Collabria Capital, Inc. is a San Francisco-Bay Area fee-only fiduciary financial planner& investment manager providing wealth management services to clients locally and virtually throughout the US.Paul Saad, Co-Founder at Collabria Capital, Inc, is a CERTIFIEDFINANCIAL PLANNER™ (CFP®) focusing on comprehensive financial planning, personalized investment management, and equity/variable compensation.The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.