With all of the changes at American Family - including surging interest rates - employees need to know what steps to take before leaving. Retiring, or worse, losing your job, is a monumental (for better or for worse) moment in your life. Your mind is racing, your palms are sweating, and you simply just doesn't know how to operate. The loss of a job, especially for those with over 20 years of service, affects the same receptors in the brain as the loss of a loved one. You have been connected with American Family for 20 years, and now the relationship is over. Remember to reach out to American Family HR & Benefits at 1-800-692-6326 for all American Family summary plan descriptions.
The same five stages of grief apply for a person going through retirement, job loss, or the loss of a loved one. Denial, anger, bargaining, depression, and acceptance are a part of the framework that makes up our learning to get through the lack of employment.
As the reality of the situation settles, your emotions will be a mess. You might feel upset one minute, and annoyed the next, and it can be tempting to vent your frustrations. Remember, acting upon impulse almost never turns out well, and can make a difficult situation even worse.
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Here are a few items to check off as you consider leaving American Family:
1. Sit down and carefully analyze your finances. If you have a spouse or signifigant other, involve them in this process. Avoid doing financial business with friends or family. Money and friendships do not mix.
2. Call your Credit Union or Bank, and consider opening a line of credit against your home equity. Consider opening additional credit cards to create an emergency credit line. As many of you have been employed your whole life, you probably won't think to do this - once you are unemployed, it becomes exceedingly difficult to get credit, making it very important you take this line of action.
3. Go over your 401(k) contributions, if you were making them. Decide whether or not you should increase your contributions for your remaining time on payroll, or cease them entirely to build up more immediate cash. How you proceed may have big tax implications. Depending on when you stop contributing, you may end up in a much higher tax bracket due to your severance payment, unemployment, etc.
4. It's not always wise to file for unemployment immediately after the loss of a job. Depending on the time of year you are laid off, paired with your financial situation, it could be beneficial to wait to file your claim so that your unemployment payments fall in the next tax year, when your overall income is lower due to the fact that you're unemployed. There are an overwhelming number of situations that you want to consider before making a move on this. We recommend speaking with a American Family-focused retirement specialist to go over your options, at 800-900-5867.
5. Unless you believe your layoff was deserved, speak to a trusted lawyer to go over your options. Venting your anger at managers and colleagues may feel amazing temporarily, but it will damage your career in the long run. You spent all this time building up your relationships at American Family, why burn them now? Avoid going online even anonymously to berate past American Family staff & management
6. Have a plan for how to fill the void on your LinkedIn profile and your resume. If you are pursuing a new job, having a job makes it much easier when finding your next adventure. In the mean time, you might consider becoming a consultant until you find a permanent position. You may also find the ability go go back to American Family as a contractor working on your terms.
7. Figure out what you will tell your American Family coworkers - create your go-to statement and practice it, so you can say it without becoming too emotional. It will be normal for friends and acquaintances to ask, and we assume you won't want to burst into tears or lash out every time the question is popped. However horrible you feel, it's crucial to remain calm and act professional, and try to avoid doing anything that might hinder your reputation or integrity. Remember to stay professional on social media when discussing American Family
What type of retirement savings plan does American Family offer to its employees?
American Family offers a 401(k) retirement savings plan to its employees.
Does American Family match employee contributions to the 401(k) plan?
Yes, American Family provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.
What is the eligibility requirement for American Family employees to participate in the 401(k) plan?
Employees of American Family are typically eligible to participate in the 401(k) plan after completing a specified period of service.
Can American Family employees choose how to invest their 401(k) contributions?
Yes, American Family employees can choose from a variety of investment options within the 401(k) plan to tailor their investment strategy.
What is the maximum contribution limit for American Family's 401(k) plan?
The maximum contribution limit for American Family's 401(k) plan is determined by IRS regulations, which may change annually.
Does American Family allow for catch-up contributions in the 401(k) plan?
Yes, American Family allows employees aged 50 and older to make catch-up contributions to their 401(k) plan.
How often can American Family employees change their contribution amounts to the 401(k) plan?
American Family employees can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan documents.
Are loans available from the 401(k) plan at American Family?
Yes, American Family's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.
What happens to my 401(k) balance if I leave American Family?
If you leave American Family, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if allowed.
Does American Family offer financial education resources for employees regarding the 401(k) plan?
Yes, American Family provides financial education resources to help employees make informed decisions about their 401(k) savings.