Career Transition? Three Steps to Protect Your Financial Health
Whether you’ve been laid off or are moving on voluntarily, career transitions can be stressful, but there are ways to help tame the uncertainty.


They say change is the only constant in life, but that doesn’t make it any less challenging to navigate even under the best of circumstances. This is especially true when it comes to career transitions. Work is so often the bedrock of our financial stability — not to mention a key resource for our overall health, mental well-being and sense of identity — so even positive career transitions to pursue a passion or take a leap into something bigger can bring the stress of uncertainty.
Whatever your circumstances, there are steps you can take to harness a career transition, stay proactive and safeguard your financial health even when things feel out of control. Here are three tactics that can help you regroup and find your footing for the next phase of your professional journey.
1. Refocus
Making a career change can be turbulent whether it was voluntary or unplanned. If you’re facing a job loss, remember that curveballs like this are sadly sometimes a part of life. Take the time to refocus your attention on your financial health and take it one step at a time.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One way to chip away at uncertainty is to arm yourself with as much information as possible so you can form a personal plan of attack and control what you can. Ground yourself with the details of your employment contract, any severance package and how the dates of final payments will work out. Don’t forget to find out what’s happening with employer-sponsored benefits. Oftentimes, companies experiencing layoffs may extend coverage for a transition period for affected employees, giving you a buffer to access offerings such as health insurance, retirement savings accounts and company stock programs.
Having all these details in front of you can help you figure out more tangible next steps for yourself and organize a strategy to protect your overall financial trajectory. Even if your job is safe, it can be a good practice to build up the flexibility to make a pivot should the need arise.
2. Fill the gaps
Once you have a clearer picture of your workplace situation and choices, it’s time to connect the dots to your personal finances. Divide and conquer important areas of your financial health by identifying your needs and planning to cover any gaps between your prior job’s coverage and your next career step:
- Budget. Check your typical monthly expenses as well as any additional costs on the horizon, then take steps to preserve your assets and reevaluate your budget. If you’ve been laid off and meet certain work and wage requirements, you may qualify to receive unemployment benefits from the government (this will vary by state). This might be the time to fall back on your rainy-day fund, but you’ll want a solid idea of how long you can reasonably expect to rely on any emergency savings you have.
- Health insurance. Look into your coverage choices, such as paying to extend your former employer’s group plan through the Consolidated Omnibus Budget Reconciliation Act, or COBRA; purchasing a different policy through the federal Health Insurance Marketplace under the Affordable Care Act; or listing yourself as a dependent on a partner or parent’s plan if you’re under 26.
- Retirement. With your short-term financial transition at the top of the priority list, retirement may feel far away, but resist the urge to make any early withdrawals. Keep tabs on your prior workplace accounts. You generally have four options: leaving assets in your former employer’s plan; rolling over your savings to a new employer’s plan, if allowed by the employer; rolling over savings into an individual retirement account (IRA); or taking a cash distribution. If you’re not sure which route fits your needs, it can be a good idea to consult with a professional, such as a financial adviser or a tax adviser.
- Equity. And if you received equity awards from your former employer, the impact of the change in your employment status will depend on the type of plan you had and the specific details of your company’s plan. Find out how your former employer is managing the transition and any contact information you’ll need to tap into any resources they’re providing. Don’t leave any money on the table.
3. Dare to dream
You also don’t have to go it alone: There are professionals who can help you think through your decisions and plan for success, such as a personal counselor to help you manage the human side of your career transition, a financial adviser or coach to offer insights around the specifics of your finances, or an accountant or estate attorney to help you safeguard your assets and plan ahead.
Once you’re clear on what you want, it may be time to begin reconnecting with people in your network, brush up your résumé or work on learning something new. Remember that even though much of life happens outside our control, you are in the driver’s seat when it comes to the choices that lay ahead of you. And with these strategies and best practices, you can help maintain a sense of control over your financial health.
This material has been prepared for informational and educational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account (“Retirement Account”), Morgan Stanley is a “fiduciary” as those terms are defined under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide “investment advice”, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code. For more information regarding Morgan Stanley’s role with respect to a Retirement Account, please visit www.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account.
Morgan Stanley at Work, Morgan Stanley Smith Barney LLC, and its affiliates and employees do not provide legal or tax advice. You should always consult with and rely on your own legal and/or tax advisors.
Morgan Stanley at Work services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley. CRC 5557649 4/2023
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Krystal Barker Buissereth, CFA®, is a Managing Director and the Head of Financial Wellness for Morgan Stanley at Work. In this role, she is responsible for working with corporate clients and organizations on creating, implementing and managing financial wellness programs that meet the needs of their employees.
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort Benefits
Plan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
By Carla Ayers
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder
-
SRI Redefined: Going Beyond Socially Responsible Investing
Now that climate change has progressed to a changed climate, sustainable investing needs to evolve to address new demands of resilience and innovation.
By Peter Krull, CSRIC®
-
Here's When a Lack of Credit Card Debt Can Cause You Problems
Usually, getting a new credit card can be difficult if you have too much card debt, but this bank customer ran into an issue because he had no debt at all.
By H. Dennis Beaver, Esq.
-
Going to College? How to Navigate the Financial Planning
College decisions this year seem even more complex than usual, including determining whether a school is a 'financial fit.' Here's how to find your way.
By Chris Ebeling
-
Financial Steps After a Loved One's Alzheimer's Diagnosis
It's important to move fast on legal safeguards, estate planning and more while your loved one still has the capacity to make decisions.
By Thomas C. West, CLU®, ChFC®, AIF®
-
How Soon Can You Walk Away After Selling Your Business?
You may earn more money from the sale of your business if you stay to help with the transition to new management. The question is, do you need to?
By Evan T. Beach, CFP®, AWMA®
-
Two Don'ts and Four Dos During Trump's Trade War
The financial rules have changed now that tariffs have disrupted the markets and created economic uncertainty. What can you do? (And what shouldn't you do?)
By Maggie Kulyk, CRPC®, CSRIC™
-
I'm Single, With No Kids: Why Do I Need an Estate Plan?
Unless you have a plan in place, guess who might be making all the decisions about your prized possessions, or even your health care: a court.
By Cynthia Pruemm, Investment Adviser Representative
-
Most Investors Aren't as Diversified as They Think: Are You?
You could be facing a surprisingly dangerous amount of concentration risk without realizing it. Fixing that problem starts with knowing exactly what you own.
By Scott Noble, CPA/PFS