off the teat
One of the things about having a job with benefits is that you get stuff rather effortlessly. Anyone who’s ever had to get medical care while unemployed can relate to this. Your employer stops paying for your coverage and you have to either go uninsured, try to find a coverage you can pay for on your own (with no steady income), or use COBRA. During the times I’ve been unemployed, or a full time grad student, I chose to go without insurance and bank on either having good health or being able to pull through whatever minor health problems I’d encounter. That’s the route I’m choosing to take now. As I’ve written before, I’m going to make sure I get whatever I need from the doctor before my coverage runs out in two months.
One thing I really was glad to have was disability insurance. But now I’ll need to get my own, if I can afford it. I’m going to do some comparison shopping for disability insurance today. If you don’t know what it is, disability insurance gives you income to replace your regular income if you get disabled somehow and are unable to work. I am young, and I’ve invested a lot of time and debt into preparing for my career. One accident involving nerve damage, memory loss, or the inability to read, write, or communicate effectively could make me unable to support myself doing what I’ve been trained for years to do. It just so happens that Wise Bread recently posted an excellent article about disability insurance that’s a great primer for someone about to stop for this type of coverage.
The other thing I’ll be considering is professional liability insurance. Just like doctors who need malpractice insurance, lawyers can use some of the same. If I work either under my own supervision, as a contract (temporary) worker, or for a company, and I make a bad judgment call and someone is adversely affected, I could be liable. I can’t just pay someone out of pocket if I accidentally cost them $20,000.00, and an "Oops, my bad," won’t cut it. I need to explore my options on this type of coverage.
I took some time out yesterday to check out my options on the $300 or so dollars that I had withheld for my 401K. If I wanted to try to roll it over, I’d have to roll it to a Traditional IRA. I’ve been doing so much reading on Roths, I’ve forgotten what I knew about Traditional IRAs. If I take the money, 20% of the payout would be withheld for taxes by my former employer, and then I could do whatever I wanted with the other 80%, including putting it into an IRA. I’m actually very annoyed that all I have to work with here is about $300. I don’t even know if I can open a Traditional IRA with that kind of money. That’s more investigation that I have to do.
Those of you who have suggested it may be happy to hear that I submitted a claim for unemployment today. My state says that their claims take about 4 weeks between filing of the claim and payment, and since my severance pay should last me for about two months in the possible absence of income, if I need the unemployment, it should start coming before I run out of money. I’m doing pretty well right now. I got my last paycheck yesterday and after paying bills, I picked up a small 2008 calendar and some resume paper at an office store, and I’m picking up some $20 business cards (for networking) today.
Speaking of which, it may seem counter-intuitive to be looking for ways to spend money (on insurance premiums and office supplies) since I know that my income is indefinite right now. But this is not a time to be fearful to the point of paralysis, ‘cause that won’t get me anywhere. I heard a quote from Arthur Ashe on Rev. Run’s show last night: "Start where you are. Use what you have. Do what you can." That’s right. That’s absolutely right. I’ve been on the phone a lot, I’ve got networking appointments already in my book, and I’ll have resumes and business cards at the ready when I get my networking on. When you’re off the company teat, you do what you can.
Where’s that copy of "Who Moved My Cheese?" Oh that’s right… my cheap butt never bought it, I just read it in the store. Guess I need to go on back to the bookstore…
