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Mikayla Felt Blindsided by a Late-Career Layoff
See how we helped her navigate a career curve ball ahead of retirement
Mikayla’s Story
58, around $1.3 million in investable assets
After decades building a successful career in engineering, Mikayla was shocked to learn she was part of a company-wide layoff. At 58, she was nearing her ideal retirement age (65), but not quite there yet. Now, with this sudden change in income, she wondered how she’d be able to continue saving for retirement while meeting her other more immediate financial obligations. Another challenge? Mikayla had accumulated significant employer stock in her portfolio, and she didn’t know what the best move would be long-term—sell it or keep it?
Mikayla came to us feeling overwhelmed, unsure about her next steps, and worried she would have to push back retirement indefinitely.
She had several hard-hitting questions for our team, which we were ready to help her address.
How can I continue preparing for retirement without a steady paycheck?
What will I do for health insurance without my employer-sponsored plan?
Should I sell some (or all) of my employer stock?
The Challenge
- She’s lost a steady paycheck, and all the benefits that come with it (health and disability insurance, 401(k) matching, etc.)
- Mikayla thinks she’d like to switch gears and open a consulting firm, but becoming a first-time business owner is intimidating
- She knows she needs to continue preparing for retirement, but this sudden shift in her financial life has her unsure about her next move (including what to do with her employer stock)
- She’s worried about her ability to stick to her original retirement timeline, ideally 65, and is now thinking about moving out of California (since she’s no longer has to stay here for work)
- Her largest asset, her 401(k), is still held with her previous employer, and she isn’t sure what her options are.
With an understanding of Mikayla’s top concerns following this unexpected career shift, our goal was to ensure she felt comfortable with the next steps. We helped her revise her retirement roadmap by:
- Reviewing her severance package closely and building a plan to replace existing income until her business had time to grow
- Applying for a retiree medical plan through her former employer, which would offer health coverage until she reached 65
- Setting up a Solo 401(k) for her business to continue saving for retirement and rolling over her old 401(k)
- Identifying tax-saving opportunities to consider during this low-income year
- Tax efficiently offloading some employer stock to help reduce concentration in her portfolio and provide some immediate liquidity
- Working with her attorney to set up an LLC,introducing her to CPA, and managing investments so she can focus on the business
Mikayla’s Results
Mikayla found the silver lining in this sudden, late-career layoff by using her newfound freedom to start a consulting agency. This meant Mikayla was a first-time business owner, which was both exhilarating and nerve racking.
While Mikayla focused on building this new business, we helped her leverage her severance, employer stock, and other resources to support her immediate financial needs while keeping her ideal retirement timeline a top priority. We even helped her navigate the process of buying land and a moving out of state, which meant revisiting her tax liability, estate plan, cost of living, and other key financial factors.
With our ongoing guidance and encouragement, Mikayla was able to:
- Confidently pursue entrepreneurship, which ultimately helped bridge the gap between her layoff and retirement
- Maintain her ideal retirement timeline, despite losing her job just a few years prior
- Bring better balance to her portfolio in a tax-efficient manner
- Maintain healthcare coverage for the period between losing her job and becoming eligible for Medicare at 65
This is a hypothetical case study for illustrative purposes only and should not be construed as a recommendation.
It may not be representative of your experience.