Are You Withdrawing from Your 401(k) Retirement Fund Account? BEWARE!

Posted on April 5, 2012 by

Save Your 401(k) Plan Money as Long as Possible

What are the federal tax consequences of withdrawing money from a 401k account?

Karol’s Note:  Many thanks to Donna Nell, a finance expert, for sharing this information.  Many people who have lost their jobs have been forced to withdraw money from their 401(k) accounts.  If you did this, make sure you’re aware of the tax consequences.  I’ve had to withdraw funds in my 401(k) account several times over the years, and each time, I get hit with a tax penalty and end up owing the IRS.

A 401(k) plan is a Retirement Account

A 401k retirement plan is considered to be an “employer sponsored retirement account.”  Employees save money through their contributions and earnings to their 401 account.  Additionally, they save paying taxes on their contributions to their 401 account.

Consequences of an Economic Meltdown

After the recent economic meltdown, interest offered on retirement accounts is dropping. The economic situation in the US is complicated because the nation is on the verge of default. Therefore, the federal government has declared to raise the debt ceiling. The effect of raising the debt ceiling can be severe on the economy. The government can introduce different policies that might have severe implication on retirees’ accounts, cutting interest rates in banks and lowering retirement benefit.

US Job Losses Compounds Our Recession

In the US, the financial situation is taking a severe twist after the recent recession. Many people suffered job loss and have no incomes. In order to manage their financial expenses, people are continuously draining their retirement accounts. If you are doing this, Beware!

 The Tax Man Wants You

There are expensive tax consequences of withdrawing from a 401k account. If you withdraw money from the account before attaining the age of 59 ½, you might be subjected to early withdrawal penalties.

Once you attain the age of 59 ½ you’ll be eligible to withdraw from your 401k plan despite your employment status. In some exceptional cases, an individual can withdraw from their account if he/she becomes disabled or leaves the job after attaining the age of 55 without incurring penalty on the account.

Know the Consequences of Withdrawing from Your 401k Account

If you are not eligible to withdraw from a 401k account, a 10% penalty will be imposed on your 401 account. Withdrawals are considered taxable income during the year that a person takes the distribution.

You can avoid penalty charges for early withdrawal on your 401k account. Check with the human resource department in your prior company to find whether you can take out a loan against your 401k account.

 What are the exceptions?

If an individual is undergoing severe financial crisis, the IRS does not impose a penalty on the early withdrawal of 401k account. It might be inclusive of a down payment to buy house or prevent eviction, excessive medical costs and manage educational expenses.

Therefore, the IRS might impose a penalty on early distributions to prevent people from taking benefits out of their retirement fund and keeping their retirement savings.

Donna Nell.  Learn More : http://www.ovlg.com/

 

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THE 5 MOST COMMONLY ASKED QUESTIONS & THEIR ANSWERS

Posted on January 26, 2012 by


Want to know the most common questions in a job search?  Would you also like to know the answers?

I am routinely asked these same questions by 99.9% of my clients and blog readers, so I am sharing them with you today.  If you’re like most people in a job search, anxiety tends to set in just because you’re not sure of the path you’ll be taking in your search.  Here are the questions and answers:

1.    How do I get started in my job search?

Answer:  Determine if you’re ready to start a job search.  If you’ve been recently laid off, you may want to:

  • Determine your mental readiness before starting a job search.  Think about whether you’re resentful or antagonistic about losing your last job.  If you’re still focusing on “why” you lost your job, it’s probably too early to start an active job search.
  • First, think about what you did “right” in your last job and what “you could have improved upon.”  Write down the answers and move on.
  • Recognize that all the second “quess-ing” in the world is not going to change your current job status.
  • If you are anxiety-driven about being able to find a job or if you are still “dazed and confused” about what happened to you in your last job, you may appear hostile or antagonistic during your job search.
  • It’s important to be mentally ready to look for a job and if you’re not, it will be readily apparent to employers and recruiters.  Remember:  “What’s past is past” and no amount of dwelling on the past will make it better.
  • Focus on the Future:  Spend some time thinking about your career and what you’ve done to be successful.  Write down what made you successful and then write down all the ways you can be successful again.

 2.      Are the large job search websites, like Monster and Career Builder effective in helping me find a job and, should I make my resume “Public” on these sites?

Answer:

  • Can you find a needle in a haystack?  Those are about the same chances you’ll have in getting your resume considered.  Of course, there are always exceptions, but why take a chance.
  • Your job search will be based on a marketing campaign of “YOU,” so, unless you are at an entry level job, don’t post your resume  as “Public” on these sites. Your goal is to present yourself as the one  perfect person who can fulfill all the needs of a particular company.  That’s a hard sell when you’re posted all over public sites.
  • Whether on Monster, Career Builder or any other site, your application will probably go through an Applicant Tracking System (ATS) key word scanning system before it ever goes to a recruiter.  More importantly, your resume must contain all of the needed job competencies before it will be passed on to a recruiter.  It’s pretty hard to include these job competencies if you don’t know what they are.
  • Most recruiters limit their resume views to about 15-30, so you’re chances are very limited in getting the attention you deserve.

3.     Should my resume be professionally re-written?

ANSWER:

  • This is an expensive option ($700+) but it will give you a template and effective wording for your use in preparing a customized resume.  Beware:  most professional resume writers use the same or similar templates and wording, so you run a risk the risk of your resume looking like many others.
  • As an alternative, you could utilize the Word templates on your computer, or
  • You could look on Google for free websites.  Many of these offer good examples.
  • One generic resume no longer works.  You must have a customized resume that contains all of the Key Job Competencies needed for the particular job you are trying to get noticed for.  So, you must prepared a customized resume for EACH job.  No Excuses; just do it if you want to shorten your job search.

4.     Do companies still pay for relocation costs?

Answer:

  • NO.  Very few companies pay for relocation expenses now.  There are always exceptions to this, but don’t expect reimbursement of relocation expenses unless your skills are in high demand.  These are the typical exceptions to receiving relocation expenses reimbursement:
  • Sometimes if a company is located in a sparsely populated area or in an unpopular area, they will help pay for relocation, but generally,
  • Executives and some higher levels of management will receive relocation- if negotiated.  Lower level professionals, technicians and the rest of the world almost never receive relocation benefits.

  • You could ask for relocation reimbursement after you’ve received an offer and are at the point of accepting the offer.  Or, you could ask for a flat dollar reimbursement ($5,000-10,000) amount and move yourself in a truck rental.

5.     How long will my job search take?

Answer:

  • The length of time is directly related to your ability to market yourself;
  • Effective utilization of your time and research must be expended to find possible jobs,
  • Your belief in Yourself that you are the best candidate is critical, and
  • You must be able to communicate how and why you are the best possible candidate, and,
  • The time involved in a Job Search is a direct correlation of the efficiency and process of your organization skills.

Hope this helps.  Just remember that everyone is anxious when looking for a job.  The trick is to learn to follow a process in your search.  In doing so, you’ll calm yourself and appear “calm and collected” when in contact with others.

Later,
Karol

 

 

 

 

Posted in job change, job search, job search process, job search readiness, length of time to find a job, professionally written resumes, relocation, RESUMES | 2 Comments

There Are Jobs in the Criminal Justice Systems…..Are They For You?

Posted on January 23, 2012 by

The below post is from our friends at Police Hired.com.  I usually think of our Criminal Justice System as having only Policemen, but there are many other job types…..And, most importantly……there are available positions.  Check them out here….

Criminal Justice is a Stable Career Field…

In today’s economy, finding a job can be difficult for anyone. Recent college graduates and seasoned professionals are finding themselves spending hours browsing job listings. One career field that has seen a relative amount of stability is the field of criminal justice.

Jobs in law enforcement, probation and parole, court services, and juvenile justice all fall within the realm of criminal justice. Although the federal system has seen very few new hires in recent years, the state and local agencies are still in need. A visit to your local county or city’s job listing website will reveal a myriad of options in the criminal justice field.

Education and background requirements will vary depending on locality and job description. Successful applicants will typically hold a bachelors degree in criminal justice, court administration, psychology, or sociology from an accredited university. Other degree fields are also desirable and will be listed in the individual job description. Applicants with military experience and those who are bilingual will be especially considered.

The Most Important Requirement…

The most important requirement for jobs in the criminal justice field is a clean criminal history. Law enforcement jobs will be especially stringent on this requirement. There is no standard in which to determine what makes a clean criminal history. People with extensive drug use in their background, multiple misdemeanor arrest, or a felony conviction will likely not be considered. Again, check with the local agency who you’re applying with with for details.

Positions other than law enforcement will be less particular in regards to criminal history, but may have more precise educational requirements. Law enforcement positions may require a certain level of education, but will not specify the degree field. Jobs in probation and juvenile justice will be highly specific in the desired degree field.

Future Predictions…

The Bureau of Labor Statistics projects an average amount of job growth in the criminal justice field over the next decade. The best prospects for new job opportunities will be found in local jurisdictions. County and city agencies nationwide are experiencing expansion in their areas of responsibility. Federal cuts and reductions have forced local agencies to undertake a greater amount of tasks. This is one cause of the fields growth despite a poor economy.

Civilian Opportunities….

For the seasoned professional with experience in fields not related to criminal justice, jobs are still available with local municipalities. Positions historically filled by sworn personnel are being made civilian positions for the reason listed above. This has led to many new positions in human resources for civilian personnel in law enforcement agencies. These personnel enjoy some of the same desirable benefits packages usually reserved for law officers.

These benefits packages are one of the most appealing aspects of jobs in the criminal justice field. Another benefit is the rigid pay elevation scale. While the starting salaries are comparable to other related jobs, criminal justice professionals have the luxury of knowing how fast they can expect to progress.

Take the opportunity to become a part of your community’s criminal justice system. In addition to a reliable source of income, you’ll have a chance to make a positive impact in your community. Check your local jurisdiction for opportunities in your area. Additional resources on this topic can be found at https://www.policehired.com. Happy job hunting.

 

 

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FREE OFFERING….

Posted on January 14, 2012 by

OMG: I JUST LOST MY JOB! WHAT DO I DO NOW?

OMG: I LOST MY JOB! WHAT DO I DO NOW?









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YOU NEED AN ELEVATOR PITCH and PERSONAL BUSINESS CARDS IN YOUR JOB SEARCH

Posted on January 9, 2012 by

elevator pitch

Elevator Pitch

Having both an Elevator Pitch and Personalized Business Cards is critical to Job Search Success. 

So, in addition to all the other advice you get on finding a job, think about having your Elevator Pitch ready and memorized so that you can repeat it at each and every opportunity.

Also have personalized business cards with your contact information and your abbreviated elevator pitch printed on the cards.   Pass out the cards at every opportunity.  Doesn’t matter if you’ve shared your cards before with your friends or contacts.  Share them again.

Here’s how to prepare perfect elevator pitches and personalized business cards:

  ELEVATOR PITCH:

Having an elevator pitch solves a couple of problems in job search:

  • Your elevator pitch becomes implanted in your brain so that you can easily repeat it, and more importantly,
  • You gain confidence in yourself every time you repeat it.

Job search can be intimidating and frustrating.  When all else fails, repeat your Elevator Pitch a couple of times and you’ll start feeling better about yourself and your abilities.

STEPS TO A SUCCESSFUL “PITCH”

  1. Sit down and come up with the four or five things you are most proud of in your career and list them,
  2. Then attach results and the related metrics to each.
  3. Look for the pattern that will emerge around your accomplishments,  and
  4. Put into a generalized statement about yourself.
  5. Your Elevator Pitch should be actionable and factual.
  6. It should shine a light on you as a successful person who does extraordinary things.
  7. Memorize your Elevator Pitch until you can spout it out at will.

Here are a couple of examples:

Example:  Accomplished Sales Engineer who successfully improves Company Sales by a minimum of  30% in periods of economic downturns. My goal is to help a company achieve unprecedented higher sales levels through strategic planning and implementation.   For example, while I was at  xx Company, I implemented xxxx which resulted in $$$ savings.

 

Example:  Dynamic and versatile Human Resources Leader with a successful history of creating improved Human Capital ROI by at least 35%.  My focus is on improving employee skills and productivity while helping managers communicate effectively.

While at xx Company, I improved New Hire Training by 50% which resulted in $$$ savings on quality improvements.  I also implemented effective communication programs between employees and management which resulted in XX% fewer terminations and XX% improved production and quality.

Your Elevator Pitch becomes your mantra.  You will repeat it time and again, so as you are editing and re-editing it, think about what you are saying about yourself.  Make sure that the picture you paint is the one you want others to see.

Personalized business cards

 PERSONALIZED BUSINESS CARDS:

These are business cards that promote you, not your company or former company.  Personalized business cards are particularly important if you are unemployed.

If you are lucky enough to be employed, it’s still o.k. to have personalized business cards.  If challenged by your manager or others about the personal cards, just remind them that you have and will continue to present yourself through your personal business cards and when appropriate, you share your company business cards.

Business cards are cheap or you can do them yourself on your computer.  I have several types of business cards that I didn’t pay more than $10 for 500-1000 cards, so this may be cheaper than the cost of printing your own cards.

 What to Put on Your Personal Business Cards:

Only include:

  • Name,
  • E-Mail address,
  • Phone Number and
  • Your Abbreviated Elevator Pitch.

Do not include graphics or pictures on your business cards; they only take up space that you’ll need for your Elevator Pitch. And, do not include your home address for the sake of your personal security.

Thanks for reading.   These are simple tasks to complete and are absolutely necessary in your job search.

Later,

Karol

 

 









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FRUSTRATED WITH BEING IGNORED?

Posted on December 30, 2011 by

The Black Hole of Resumes

 

  • Do you spend time preparing customized cover letters and sending your “perfect” resume to countless employers and never receiving so much as a “Thank You”?

If so, please take a minute to read why this may be happening.

Job Search has drastically changed since 2009. Blame it on our pitiful economy, social media, short staffed HR departments, or just too many people applying for the same job; it really doesn’t matter unless you’re the one being ignored. Does this apply to you?  If so, you’re like majority of people who apply for job openings, especially if the job is listing on one of the public internet search sites.

Remember that most recruiters spend less than 30 seconds on a resume.  If you can’t get their attention in the short time, you’re sunk.  If you want to be successful in your job search:

  1. Most important: Your resume must contain the same Key Words used in the Job Opening Description … and those words must be in the top 1/3 of your resume.  This includes job titles and job competencies.   Remember the 30 second rule?  If at least 90% of the job’s key words apply to you, there is hope that you’ll be considered.  Otherwise, you’re probably wasting your time and the company’s time.

If the job’s key words are not relevant to you, don’t even try to apply to the job opening.  Worse yet, if you try to cheat your way into getting noticed by using key words that don’t accurately describe your skills, you’ll only end up being very embarrassed should a recruiter call you for “more information.”

2.  Almost all companies and recruiters use Applicant Tracking Systems which look for the key words used in the job opening description.  If your resume doesn’t have these key words, you’re sunk…again

 3.  If you have the needed key word job opening competencies plus a whole bunch other competencies, you probably will be considered “over qualified.”  Several years ago additional competencies were considered a real plus and valuable for future job openings.  With this economy and the natural fear that many people have of being replaced with someone who demands less pay than they do, you could be seen as being overqualified.  This is particularly true if the Hiring Manager is the one in a fearful mode.

 4.  It’s only natural that people with 20+ years’ experience have more than a job openings’ requirements.  Sometimes you can get around this by explaining in your cover letter that you understand that you have more than the requisite skills but you are looking for a job that is less demanding… or you are planning on taking college courses…. so you don’t want to undertake a higher level job… or you’re coming out of retirement. No guarantees on this one.  Whether we admit it or not there is hidden age discrimination and as soon as you mention retirement, or indicate that possibly you are not a dedicated type of employee, doors are quicker to close.

5.  Another option is to revise your resume to include only the needed job opening skills. This is really what a company is looking for when they scan resume.  They usually could care less about all your other skills.  (Remember: job search has changed).  It’s great to be proud of your past accomplishments and you could probably awe some recruiter, but this still doesn’t pay the bills.

6.  Along this same line, if you have gaps in your work history, explain them in your cover letter.  One thing recruiters always look for is work gaps.  So, go ahead and explain them but be able to explain the gap in a positive manner.  For example:  if you elected to take a lay-off package, say so.  If you’ve been laid off, say so…. And then explain that you have been doing volunteer work, or taking classes to improve your skills during the interim.

This is a hint:  you need to be doing some sort of professional “busy-ness” if you’re in a lay off status.    Recruiters will ask you for details and the hiring manager will probably ask you similar questions, so if you have included this in your cover letter, you will be ahead of the game (if you repeat the same information that you had on your cover letter when asked).   You can also include this same info in the chronological part of your resume.

 7.  One sure way to get your resume trashed is to have typing errors or inaccurate information on your cover letter or resume.  I know this seems obvious, but many people simply cannot spell or put together a sentence. That’s why computers have spell check and grammar help.  Even worse is if you make a dumb error, such as not having correct employment dates, incorrect company information, including addresses or any other information that is easily tracked.

 8.   All companies check with prior employers to verify information and most will ask “reason for termination.”  If you were terminated “for cause,” better come up with an explanation as to why that happened.  If it’s something like “management disagreement”, that’s easier to explain than “blatant misconduct” or something similar such as “could not perform essential job duties.”  It’s best to explain the circumstances of your termination, if asked.

But, unfortunately even if you have 90%+ of the job competencies, most companies are hesitant to hire someone who has been fired.  Many companies will change a termination reason if requested.  They are well aware of possible legal implications.  Try contacting the HR Department of this company and ask them what the termination records indicate.  Then ask them to please change it because you are having great difficulty finding a job.  Of course, it always helps to add words such as “you’ve learned your lesson and you will never do xxx again.”

If the HR Administrator is “not authorized” to change the term reason, ask to speak to the company recruiting manager and then have a conversation with your manager who fired you and plead for help in changing the term reason.

9.  Also, remember, that the economy is affecting employment.  Many companies get jobs approved by upper management and the economy or the company budget tightens, and the job is cancelled or delayed.  So, since the company has already paid for the ad, they may let the job ad run.  Then when the job reopens, they will have a supply of resumes to start the interview process…. And, unfortunately, many recruiters and companies like to build a pipeline of possible candidates.  In the recruiter’s case, this is a selling point to attract business.  In the company’s case, they are optimistic and anticipate a positive change.

Hope this helps as a checkpoint when you are ready to start banging your head on the wall in frustration.  Job search is just that: a search.  If you can improve your chances of getting noticed, job search becomes past tense because your search will be over.

Later,

Karol

Posted in FRUSTRATION WITH RESUME RESPONSE, GETTING YOUR RESUME NOTICED, RESUME CHANGES, RESUMES | Tagged , , , | Leave a comment

CHANGE IS GOOD … FEAR of CHANGE IS NOT

Posted on December 26, 2011 by

Change is Good; Fear is Not

Mastering the Art of Change Is Necessary if you Want to Advance in Your Career

 

  • Do you hate going to work every day because the work you do is boring?

  • Do you hate your boss more than the boring work you do?

  • Are you tired of scraping pennies together to pay bills?

  • Are you afraid to look for a job because your boss might find out about it?

  • Have you looked unsuccessfully for a job and gave up in frustration?

  • Do you know that you should move your career forward now, but don’t know what to do?

If you answered “yes” to any of the above, you’re no different from the many thousands of people who want or need to change jobs but don’t know how to get started or what to do and say in an interview.

I Conquered Fear and Won!

I used to be just like you.  I spent ten years in a job that was going nowhere but I didn’t know how to get out of the job or what to do to move forward.  The company I worked for was very paternalistic and made it very easy to just stay there.  The breaking point for me came when I had been passed over for a promotion three times.  The third time I was passed over I asked why and the answer was:

“You don’t need the money like Joe xxx.  Your husband has a great job and you should be thankful for that.”

That did it.  I was madder than mad and that statement was responsible for changing my career. 

I made up my mind that I was going to move to another company and move into a management position that was much better than the one I had missed. 

What did I do?  Well, I made a lot of mistakes that I will help you avoid in this report.

But, this “passed over for promotion” event changed my life.  And, it changed it for the better. 

I went on to another Fortune 10 company and was promoted three times in eighteen months.  Then, I switched to a high tech Fortune 50 company and was promoted twice into executive positions before landing a top executive position during the high tech boom. 

If I had not decided to leave the company that refused to promote me, I would have been laid off when they were bought out about a year later. 

More importantly, this determination to change jobs gave me confidence to continually be aware of other opportunities.  And, the opportunities were ones that I thought would I would never be able to get.  But I did; and you can also.

More later,

Karol

Posted in career change, change, change is good, fear, job change, Uncategorized | Tagged , , , | Leave a comment