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You don’t work at Twitter anymore. In fact, about half of the microblogging site’s staff has departed, most of them gone within weeks of regime change under new CEO Elon Musk in late 2022.
Or maybe you’re still at Twitter, but amid all the disruption, you feel the ax could drop at any moment.
It’s true that Twitter garners a lot of headlines for its staff cuts, but layoffs are back en vogue across a range of industries from financial service and old-line media to soft drinks and e-cigarettes. Still, it seems that most layoffs are coming from technology companies these days.
You’re facing uncertainty. You’ve got housing, healthcare, and other immediate expenses while your chances of quickly finding a new job seem impaired by layoffs and belt-tightening elsewhere. You may also be involved in one of several lawsuits against Twitter over severance pay and other issues, including discrimination.
So, let’s jump to some steps to help you make the most of your finances while you work on getting back on track.
It seems most of Twitter’s recent ex-employees will have received severance compensation — different media reports and court filings have it at one, two, or three months’ pay. COBRA healthcare eligibility will have kicked in. And, by most accounts, the company has paid cash for departing staffers’ stock awards, which may have been a lucky break.
More to the point and depending on how much Twitter stock compensation you received, you may be the recipient of “sudden wealth.”
Like lottery winners, pro athletes, business sellers, and M&A beneficiaries, some laid-off tech workers suddenly find themselves with more liquid cash on hand than they’re used to having. While that’s definitely good on balance, it can complicate things when you’re worried about bills and looking for work in a tightening labor market.
Sudden wealth can also drive out caution, even if caution is your customary stance on finances. You may become an impulse buyer or make promises that may not be in your long-term interest. In all cases where sudden wealth comes into your life, it’s better to resist the urge to spend — or even invest — until you have a solid financial plan.
At Cerity Partners, experience has taught us that a financial plan can provide a framework for managing your sudden wealth, whether the amount represents a life-changing windfall or enough to see you through a rough patch in a long and lucrative career.
The five-step framework we recommend helps you balance competing priorities and make informed decisions while minimizing income and estate taxes, now and going forward.
Luckily, you don’t have to shoulder all this responsibility by yourself. There are experts available to help you at every turn starting with the professionals — lawyers and accountants, for example — you already rely on. Ask if they can help you directly or recommend others in their professional networks. If current contacts don’t fit the bill — your financial situation has grown more complex, after all — it could be time to find advisors able to guide you through the five steps above, and help you assemble a team of professionals that is up to the task.
Myles is a Partner based in the San Francisco office. He provides investment and financial planning advice to help clients achieve their short- and...Read more
Cerity Partners is not contracted with, endorsed by or affiliated with Twitter, Inc.
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