Help a wealthy client who’s lost her job

The situation

One of your wealthy clients tells you her company downsized and she lost her job.

She wasn’t given much advance notice, so she’s in shock.

She wonders how she’ll pay bills, and is worried about her future.

How can you help?

She’ll need time to process what’s happened, so schedule a meeting in a couple of weeks to review her portfolio. In the meantime, she and her spouse should discuss their combined financial status. Tell her to bring all information, including pension documents and banking statements.

Since she was with the company for 25 years, and a six-figure earner, she got offered a severance package. But before she signs, tell her to review the document with a lawyer to confirm she was given what she was due. There may be room to negotiate the employer’s offer.

What are your new career priorities?

During the meeting, examine her tax considerations. She’ll need to decide if she wants to take her severance as a lump sum, or through scheduled payments. The latter are usually better for tax purposes.

She may want to know which assets are liquid and what she can pull money from. Speak with her accountant to see what would have large tax implications if sold, such as her share of the family cottage or a timeshare in the U.S.

Here are some questions to ask when you meet with her:

Ask

Were you wrongfully dismissed?

Not

Why’d they fire you?

Ask

What are your “need” expenses and your “want” expenses?

Not

How can we slash your expenses in half?

Ask

How are you doing with all this change in your life?

Not

Have you lost weight?

If her income is low enough that she owes no tax, there may be certain items her spouse should start declaring on his tax return, such as charitable gifts.

Also, she may be upset if she was fired, and want to sell her company stock. Make her aware this could push her into a higher tax bracket. Check with her accountant, and if the stock’s holding its value, point out there’s no better revenge than to have her former employer fund her retirement.

She may also feel like she’s lost her professional identity, daily routine and sense of security. This could affect her emotional and physical well-being. Suggest healthy ways to grieve, such as logging her thoughts and emotions in a journal. Be a resource by referring her to a recruiter or someone well-connected in her field.

Tips for an upbeat job search

• Create a plan on how to start your search, including connecting with a job recruiter.

• Keep a regular routine that includes meal times and exercise.

• Stay positive by focusing on what you can control, like preparing for interview questions.

• Avoid the tendency to withdraw and isolate yourself.

• Catalogue your strengths.

• Read those books you’ve been piling on the nightstand.