The Space Shuttle program is coming to an end.  Shuttle Atlantis landed today to complete its’ final mission.  We have a launch of Discovery scheduled for September 16^th and a launch of Endeavour planned for mid-November.  Those are the last scheduled missions for the shuttle fleet.

As a resident of Merritt Island, I will miss several things.  The first is the excitement and the beauty of the launches.  I will miss following the reports of the missions, and I will miss the twin sonic booms that rattle my house and scare my dog as the shuttle returns to earth at Kennedy Space Center.  The shuttle program has long been a part of the fabric that makes life special on the Space Coast.

But the real pain from the retirement of the fleet will be the economic impact on the workers, surrounding businesses and property owners.  There will be several thousand shuttle workers who will be left without a job.  Their losses will cause a ripple effect across our local economy.      

If you are in the unfortunate position of possibly losing your job, you should have already been fine-tuning your resume and exploring your career and retraining options.  While there are a number of things you can do to enhance your employment opportunities, this is also an important time to plan for the financial impact of starting a new job or career.  Below, I have listed some of the things you should be considering as you prepare to move into the next phase of your life.    

Planning ahead can minimize financial losses

• Determine how the change will affect your income and expenses.

• Save up an emergency cash reserve.

• Reduce consumer debt as much as possible.  Pay off any credit cards and loans that you possibly can.

• Determine whether you can afford to be out of work temporarily in case you are not able to find work right away.  Are you being offered a separation package? 

• You may need to return to school.  Figure out how you will pay for your education.  You may be eligible for grants and financial aid.  You may also be eligible for a Lifetime Learning tax credit

Evaluate your insurance coverage

You will probably lose your employer health plan, although you should be able to continue coverage under COBRA.  But COBRA is expensive, so you should evaluate your options.  If you have a disability policy, you need to consider how it is affected also.  And, you may lose your group life insurance, so it is important to make sure your family is still protected.

Changing jobs/careers may affect your retirement nest egg

Depending upon how long you have been with your employer, you may or may not be vested in their contributions to your retirement plan.  If not, you will only receive a portion, or possibly none, of the employer contributions.  Secondly, you will need to decide how to handle your retirement account.  Upon separation, you will be able to access the funds, and if you do not have a new job, it can be tempting.  But you should only access the money in your retirement account as a last resort.  Any amount withdrawn from the plan will be taxable, and if you are under 59 ½, you may also pay a 10% penalty.  If you plan to rollover the account into your own IRA, make sure you do so properly and in a timely manner.  Not doing so can result in the 10% penalty and 20% in tax withholding.

Everyone is different