Paul Applegate, Edward Jones | Harford County, MD Financial Advisor

Know the money involved. If your transition is due to a layoff or early retirement package, you need to understand how much money you'll receive and for how long. Will the money stop if you accept a new role, will you accrue sick leave and vacation time during your transition and will you be paid for unused leave at your final resignation date. You should also investigate if you qualify for any programs that would support you during your transition.

Know your benefits package. Many companies and organizations offer extended benefit packages for those transitioning into retirement or being laid off. For example, the Federal government may offer coverage under the Federal Employees Health Benefits (FEHB) program, or you can research programs like the Temporary Continuation of Coverage, which can last up to 18 months for separating employees. Regardless of your situation, doing your research and asking questions about understanding what programs and support is available to you is key.

Know your retirement plan options. Many Americans have retirement savings in 401Ks and similar programs. Government employees use the Thrift Savings Plan (TSP). You should work with a financial professional who can explain how you’ll be taxed on withdrawals from these accounts, should you need them. In some cases, you can qualify for early retirement and can avoid the 10% early withdrawal penalties. If you're transitioning to a new role, you may have the option to transfer past accounts like your TSP to a new employer’s 401(k) if the plan accepts transfers. Finally, you could roll over your existing savings plan into an IRA allowing you to avoid immediate taxes and potentially providing you with some attractive investment options.

Review your finances and budget. What sources of income can you count on during this transition? If you have built an emergency fund containing several months’ worth of living expenses, you may need to tap into it. If you were already nearing retirement age, you might start drawing on Social Security, even if it’s earlier than you planned. If you aren’t near retirement age, you may be able to find some part-time work until you land your next full-time job. At the same time, you may want to closely examine your budget to find areas in which you can cut back. One of the many free budgeting apps available online can prove useful in this area.

Get some answers — and some help. You may want to consult with a financial professional, who can provide advice and guidance and help you work toward your short- and long-term goals.