How to Financially Plan for Returning to Work

Summary

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WSJ Your Money Briefing: How to Financially Plan for Returning to Work

Date: August 20, 2020
Host: Charlie Turner
Guest: Veronica Dagger, Wall Street Journal Personal Finance Reporter

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Episode Overview

As businesses and schools begin to cautiously reopen during the COVID-19 pandemic, many employees face the transition from remote work to returning to the office. This episode, hosted by Charlie Turner with guest Veronica Dagger, explores key financial considerations for workers heading back, including budgeting, emergency funds, insurance, and estate planning. Dagger provides a checklist on how to financially safeguard oneself amid ongoing economic uncertainty and health risks.

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Key Discussion Points & Insights

1. Reassessing Your Financial Checklist (01:28)

• Budgeting Revisited: Returning to on-site work brings new or renewed expenses (commuting, meals, childcare). Veronica Dagger emphasizes reviewing your budget and ensuring all personal financial documents and policies are up to date.
• Quote:

  "You should start thinking about your budget again in a different way, making sure you have a will in place, thinking about your insurance coverage. And no matter how old you are as a worker, you want to make sure all these things are in good shape as you return to the office or school building."
  — Veronica Dagger (01:28)

2. Emergency Fund Strategies for Uncertain Times (01:45–02:32)

• Rethinking Emergency Savings: The standard advice of holding three to six months in savings may no longer suffice due to heightened economic uncertainty. Financial planners now recommend 12–18 months of essential expenses where possible.
• Why Save More: The pandemic’s unpredictability and job market instability mean a larger safety net may be necessary.
• Quote:

  "Because of this economic uncertainty, it's sort of changing the game when it comes to emergency funds. So a lot of planners are saying save more if you can… you might want to save 12 to 18 months of expenses to cover those essential expenses."
  — Veronica Dagger (01:52)

3. Preparing for Health-Related Work Absence (02:32–03:05)

• Investment Adjustments: For those concerned about being sidelined by illness, Dagger advises reviewing investments to ensure sufficient liquid assets are available (cash, money market funds, CDs, or short-term bonds) to cover 5–7 years’ worth of spending if needed.
• Quote:

  "You want to make sure you have adequate funds saved outside of the stock market... because you want to be able to cover your income shortfall for an extended period of time, like five to seven years in some cases."
  — Veronica Dagger (02:39)

4. Understanding and Maximizing Sick Leave Benefits (03:05–03:43)

• Employer Benefits: Check what your workplace provides in terms of paid sick leave.
• Legal Protections: The Families First Coronavirus Response Act offers paid leave for certain COVID-19-related absences (two weeks for quarantine or symptoms).
• Local Resources: Workers not covered by federal law should look for additional aid from local or state programs.
• Quote:

  "There's also something called the Family's First Coronavirus Response act and that provides protections to employees who qualify, such as two weeks of paid sick leave..."
  — Veronica Dagger (03:10)

5. Long-Term Disability Insurance Importance (03:43–04:13)

• Replacing Lost Income: Long-term disability insurance can replace up to 60% of gross income in some cases.
• Supplemental Policies: If employer coverage is inadequate, especially for sole breadwinners, consider purchasing additional insurance privately.
• Quote:

  "Depending on your employer, this may replace up to 60% of your gross income if you become disabled. If your employer doesn't provide adequate long term disability coverage, really look into securing a supplemental policy from a private insurer..."
  — Veronica Dagger (03:49)

6. Updating Wills and Estate Planning (04:13–04:59)

• Legal Essentials: Now is a crucial moment to make or update your will, power of attorney, and healthcare proxy.
• Pandemic Adaptations: Many states allow virtual notarization; digital options and employee legal benefits may offer easier or less expensive access.
• Quote:

  "This is really shed light on the need for having a will in place. Also a power of attorney, a health care proxy. All of these things are super important."
  — Veronica Dagger (04:18)

7. Organizing Important Documents (05:04–05:34)

• Access in Emergency: Single individuals, in particular, should ensure a trusted person can access legal, financial, insurance, and medical documents, as well as online passwords and even burial information if needed.
• Quote:

  "You want to make sure you have a trusted loved one who knows where to find and access all of your legal documents, financial and medical and insurance records, online passwords, even your burial information..."
  — Veronica Dagger (05:04)

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Notable Quotes & Memorable Moments

• On changing emergency fund benchmarks:
  "The coronavirus is a prime example of never knowing what's going to happen in life."
  — Veronica Dagger (01:52)

• On why to update your will:
  "This is a great time to do that. This is really shed light on the need for having a will in place."
  — Veronica Dagger (04:18)

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Timestamps for Key Segments

• [01:28] – Reassessing your budget and insurance before returning to work
• [01:45] – Emergency savings and why more is recommended now
• [02:32] – Financial preparations if you get sick (asset allocation and liquidity)
• [03:05] – Understanding sick leave, Families First Coronavirus Response Act
• [03:43] – The necessity of long-term disability insurance
• [04:13] – Updating wills, powers of attorney, and other estate planning
• [05:04] – Who should have access to your important documents

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Tone & Takeaway

The discussion between Charlie Turner and Veronica Dagger is straightforward, practical, and filled with actionable advice. The urgent tone reflects both the ongoing pandemic risks and current economic uncertainty. The episode is especially helpful for anyone returning to in-person work who wants a clear checklist to protect themselves financially and legally against new and unexpected challenges.

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For listeners who want to be proactive and financially resilient as they return to the office, this episode offers a comprehensive and accessible plan for safeguarding your money—and your future.

Transcript

[A]

Deal replaces fragmented payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 countries operate like a local everywhere. Visit del.com WSJ.

[B]

Here's your money briefing for Thursday, August 20th. I'm Charlie Turner for the Wall Street Journal. With some of us making the transition from working at home to going back into the office, now may be a good time to make sure our budgets are in good shape because of this

[C]

economic uncertainty, it's sort of changing the game when it comes to emergency funds. And so a lot of planners are saying save more if you can.

[B]

That's our personal finance reporter Veronica Dagger. She's here to discuss how to financially plan for going back to work. That's after the break. As businesses and schools tentatively start to reopen, employees heading back to work are thinking through the steps they'll need to take to avoid catching the coronavirus. But they may also want to make sure their finances are in order in case they do get sick. Our personal finance reporter Veronica Dagger is here with some financial tips you might want to keep in mind as you return to the office. So, Veronica, generally speaking, when people are returning to work, what kinds of financial considerations should they be thinking about?

[C]

Well, you should start thinking about your budget again in a different way, making sure you have a will in place, thinking about your insurance coverage. And no matter how old you are as a worker, you want to make sure all these things are in good shape as you return to the office or school building.

[B]

Let's talk about the importance of having an emergency fund. Why is that important? And what changes should a worker be considering?

[C]

Right. So you never know what's going to happen in life. I think the coronavirus is a prime example of that. Historically, financial planners have recommended three to six months worth of expenses saved in cash for emergencies like a broken down car or a health crisis. But because of this economic uncertainty, it's sort of changing the game when it comes to emergency funds. And so a lot of planners are saying save more if you can. So, for example, you might want to save 12 to 18 months of expenses to cover those essential expenses. And that can give you a bit of a safety net in case of a job loss or an extended illness.

[B]

Now what about getting sick with COVID 19 after returning to work? What kind of financial preparations can be made there?

[C]

Right. So if you think you're going to get really sick and this takes you out of the workforce, you want to look at things like adjusting your asset allocation for your investments. You want to make sure. You have adequate funds saved outside of the stock market in something like cash or a money market fund or CDs or short term bond funds, because you want to be able to cover your income shortfall for an extended period of time, like five to seven years in some cases.

[B]

And should workers also check to see if they're eligible for things like paid sick leave?

[C]

Yeah, so that can be crucial. So you want to see what sick leave or benefits your employer provides in the event that you get COVID 19. There's also something called the Family's First Coronavirus Response act and that provides protections to employees who qualify, such as two weeks of paid sick leave for those who are quarantined or experiencing COVID 19. If you're not eligible to receive benefits from this program, you want to check with your local city and state regulations to see if there's any additional COVID 19 relief benefits that are available to

[B]

you and if they're going to be out for a while. I think long term disability insurance is important as well.

[C]

Absolutely. Yeah. So you want to check that you're covered by your employer sponsored long term disability insurance. And depending on your employer, this may replace up to 60% of your gross income if you become disabled. If your employer doesn't provide adequate long term disability coverage, really look into securing a supplemental policy from a private insurer, especially if you are a sole breadwinner.

[B]

This isn't something people like to think about. But is this a good time to make out or update your will?

[C]

Absolutely. This is a great time to do that. This is really shed light on the need for having a will in place. Also a power of attorney, a health care proxy. All of these things are super important. In case of an unforeseen event such as the serious illness, you can get your will done by your attorney. There's a lot of states allowing virtual notarization at this moment. You can also go online. There's a couple digital options you can check out. Or some companies, including our own, have a benefit where you can work with an attorney to create your estate planning documents at a reduced price. So that's a nice benefit to sign up for if that's something of interest.

[B]

And Veronica, are there any other estate planning matters that workers should be addressing?

[C]

So especially for someone who's single, you want to make sure you have a trusted loved one who knows where to find and access all of your legal documents, financial and medical and insurance records, online passwords, even your burial information, and along with your contact information for your advisors and keys to your home, have all that information at hand with someone you trust just in case you need to call on them in such an extreme emergency if it arises.

[B]

Wall Street Journal personal finance reporter Veronica Dagger. Thanks a lot Veronica.

[C]

Thanks Charlie.

[B]

And that's your money briefing. I'm Charlie Turner for the Wall Street Journal.

[A]

Still running global payroll like a relay race. Deal replaces fragmented payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 plus countries with in house local experts and white glove delivery and deal plugs into what you Already use Workday, SAP, NetSuite, operate like a local everywhere. Visit d e l.com WSJ that's d e-L.com WSJ.