Money moments
I just got laid off — what do I do with my money?
The short answer: slow down the paperwork, secure health coverage, find the 90-day equity deadline if you have options, and switch your budget to runway mode. Almost nothing about a layoff requires a same-day decision — except knowing which deadlines exist.
What matters in the first 48 hours?
- Don’t sign anything yet. The severance offer will still be there tomorrow; the review period exists for a reason.
- Get the facts in writing: last day, severance amount and timing, PTO payout, benefits end date, and what happens to your equity.
- File for unemployment immediately. It’s an insurance benefit you paid for, not a favor — and severance doesn’t automatically disqualify you.
What matters in the first two weeks?
Health insurance (COBRA vs. marketplace), the 401(k) decision, and the equity clock. Then build the runway math: liquid savings ÷ true monthly essentials = months of runway. That single number converts an ambient dread into a budget and a job-search timeline.
Should I pause investing while unemployed?
Usually yes, except where there’s a match to capture — cash is what buys calm and negotiating power between jobs. An emergency fund being spent during an actual emergency is the system working, not failing. Restart the automatic investing with the first paycheck at the new job.
The moment this page is for
The calendar invite said “quick sync” and now you’re holding a severance PDF. Take a breath, then ask what applies to your situation — deadlines and all.
Quick answers
Should I sign the severance agreement right away?
No. Severance agreements are legal documents that trade money for rights, and you're typically given 21–45 days to review one (and in some cases a window to revoke after signing). Read it, understand what you're giving up, and consider an hour of employment-lawyer review for anything unusual — especially non-competes or unvested-equity language.
What happens to my health insurance after a layoff?
Coverage usually runs through the end of the month, then COBRA lets you keep the same plan for up to 18 months at full cost plus 2%. Compare that price against ACA marketplace plans — losing job coverage is a qualifying event, and with a lower income year you may qualify for meaningful subsidies.
What should I do with my 401(k) after leaving?
Usually either leave it (if the plan is decent and the balance is over the force-out threshold) or roll it into an IRA or your next employer's plan. Cashing out is the expensive option: taxes plus a 10% penalty before age 59½. One warning: if you have an outstanding 401(k) loan, it may come due quickly after separation.
Do I lose my stock options when laid off?
Unvested equity is typically gone, and vested options usually expire 90 days after your end date unless your plan says otherwise. This deadline is easy to miss amid everything else and can be genuinely expensive — check your grant paperwork in the first week, not the last.
Educational only — not financial, legal, tax, or investment advice. Rules and thresholds change; the specifics of your situation matter more than any general guide.