IF YOU are about to be made redundant, you will be going through one of the most stressful and uncertain times of your life.

You may have been with the same company since you left school, and had hoped that this would be a job for life. Unfortunately, these days this is rarely the case.

You may have found another job already, or you might be deciding whether to change direction completely and set up your own business.

Perhaps you have chosen to take early retirement, or to semi-retire and take a less stressful job.

At the bottom of all of these decisions is one common and all-important factor - money!

During the next few weeks and months, you will receive advice from a number of sources.

Your bank will be sure to contact you when your severance pay reaches your account.

You will certainly receive advice from your friends in the pub who will all know exactly how to invest your money for you.

So who is best to help you through this maze?

Clearly you need to speak to somebody who is independent and therefore not working for any particular company. This means that the advice which you receive will be across the whole financial spectrum.

Who can offer this advice - an independent financial adviser.

What does an independent financial adviser do?

He or she will help you to plan your future and to look ahead at the decisions you are going to have to make.

The adviser will show you the options available to you and discuss the advantages and disadvantages of each one for your personal circumstances

Every person is different and his or her situation is unique. Therefore the advice that person receives must be tailored to specific needs.

So what do you need to consider and what is the first stage?

The first stage must be to sit down and think about your wants and needs - not just this year, but in two years' time and 10 years' time.

Does your partner have the same ambitions or have you never discussed them?

Having decided where you want to be, you then need to work out how to get there.

Your independent financial adviser will help you to work out your outgoings against your income and see whether it is possible to either reduce or restructure what you currently have to better effect.

Should I pay off my mortgage with my severance pay? Would it be a good idea to clear my credit cards or change them to a lower rate of interest?Will I be earning as much in my new job or will I need to use my lump sum to supplement my income?

All of these questions need to be discussed with an expert who will help you to make the right decisions and will also save you a lot of time and energy.

When you sit down with an independent financial adviser he or she will want to know a number of things.

The good adviser will spend time talking to you in depth before he is in a position to offer you advice.

This is a very important stage - the more information the adviser has about you, the better the advice will be.

So what options do I need to consider now that I have decided what I would like in the future?

Perhaps you have received a lump sum and wish to invest it for the future...

You need to consider what you want this money for - perhaps you have a family wedding to consider.

When are you likely to need this money?

How much "risk" are you prepared to take, or are there funds which are "guaranteed" ?

How much do you want to keep as "rainy day" money?

All of these questions need to be discussed with an expert.

There are hundreds of ways to invest your money, but only a few will be right for you - take expert advice to avoid mistakes.

You may have left a company pension scheme behind with your job.

What happens to this now?

These scheme are sometimes referred to as being "frozen" but what does that mean?

You have a number of options as a company scheme leaver and all of these need to be considered.

You may want to leave your pension where it is but want to know the implications of doing this, and what will happen when you retire.

This does depend on the terms of your scheme but the fund of money must grow and is not "frozen" as many people think.

You may wish to transfer your pension to your new employer and you need to know what the advantages and disadvantages would be of doing so.

If you have been in the company scheme for less than two years then you may be entitled to a refund of your personal contributions.

How do you arrange this?

A cash equivalent may be available which can be transferred to a personal pension plan.

Is this a good idea?

Perhaps you are entitled to take early retirement but aren't sure what the penalties are and how they may effect your income.

All of these questions need to be discussed with an independent financial adviser with the expertise in this area.

Your first task must be to think about what you want, and to decide on your priorities.

Having done this you must work out what your current outgoings are, and whether these are likely to change.

Don't panic - there are experts here to help you through the next stage, and avoid you making a mistake.

Call for a free consultation on 01244 322388.

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.