Layoffs At WorldCom Cause Concern About Financial Security; American Express Financial Advisors Offer Financial Tips for Wary Workers.

Business Editors

The past year has brought layoffs in many industries as a result of September 11 and corporate scandals at Enron and now WorldCom. Lifetime job security is a memory of the 1950s marked by gold watches and a pension for life after work. But, recent headlines about WorldCom's upcoming layoffs confirm what many employees already know...there is no job security.

How well you are able to adjust financially to any interruption in your income is crucial to your financial and personal well-being. American Express financial advisors offer these tips:

-- Assess financial position - Reviewing assets and liabilities gives you a place to start.

-- Evaluate liquidity - Cash flow will be important during this time. Take note of liquid investments, such as, savings and checking accounts, mutual funds, bonds, certificates of deposit, etc.

-- Don't forget about your 401(k) - You don't want to draw on retirement assets during unemployment, however, keep in mind that any after-tax contributions you made to a 401(k) are sent to you in a check when you roll-over to an IRA.

-- Keep base expenses as low as possible - You may have to forego some monthly expenses such as cable service or a health club membership during this time to keep cash available for necessary items like the mortgage and utilities.

-- Defer loans - Some loans, such as student loans, offer deferral of payment during periods of unemployment which keeps more cash in your pocket.

-- Maintain benefits - You should set aside money for COBRA benefits to guard against possible medical bills that will have a major impact on your financial situation.

-- Apply for unemployment - This allows cash flow to continue and may be required for certain loan deferrals.

-- Keep records of job hunting expenses - You can deduct some expenses associated with finding a job. Although this won't help your current cash flow situation it will help you at tax time.

-- Evaluate priorities - This may be a good opportunity to assess what you want for yourself and your career. Your financial position could allow a career change or possibly retirement.

If you don't see a gold watch in your future, start preparing now by putting away three to six months of expenses in an accessible account. It could be just what you need to stay afloat until you find that next career opportunity.

If you are interested in an interview with a local American Express financial advisor contact Ann Wasik, Media Relations, at 612-678-1592 or [e-mail].