client scenario:
The Unplanned Sabbatical After a Layoff
- Collette (43 yo)
- Former Senior Director
- Lives in San Francisco
She wasn't planning to step away from work and got blindsided by a company-wide layoff.
She soon decided to reframe her time without work.
“What would it take for this layoff to be the best thing that could have happened to me and my family?”
financial situation before Layoff/sabbatical
Annual Income:
$260,000
Assets:
- $400,000 in retirement savings (401(k))
- $120,000 in liquid savings & investments
- $150,000 in company stock options (vested)
- Owns her home and a vacation home 1 hour outside the city
Collette wasn’t planning to step away from work. She might have thought about it someday, but it always seemed like a distant dream.
After more than a decade building a strong career and climbing the corporate ladder, she was blindsided by a company-wide layoff. Overnight, the steady income, benefits, and structure that she was used to disappeared.
Her initial reaction was disbelief, then panic. She didn’t think she could last long without working, so she dove straight in updating her résumé, applying to jobs, and coordinating networking meetings. She fell back on her skills; it felt good to make a list and check things off.
But she noticed after a while that her efforts weren’t really leading her anywhere. She didn’t feel like she was being strategic. It was hard to be strategic because she didn’t really know what she wanted next.
After a few weeks, she realized she was flat out exhausted – emotionally from the big news, and also physically from years of constant rush, aggressive goals and deadlines, and little time for herself.
She paused. Instead of rushing into the next thing, she decided to create some space to breathe and to use this time more intentionally.
She knew this would be hard. She was married with 2 kids. Their lives would continue – her husband would continue going to work, and the kids to school, and all their activities that kept them busy. She had always been the ambitious do-it-all mom. Now she didn’t have much to do. And that scared the heck out of her…at least at first.
So she started asking herself, “What would it take for this layoff to be the best thing that could have happened to me and my family?”
Collette decided to reframe her time without work. She stopped looking for her next role, which was really uncomfortable. Instead, she decided to take a 6–12 month “unplanned sabbatical” to regroup, recover, and reset her direction.
She wanted to use this unexpected time she was given wisely: recharge, do some of the things that had been on her list, watch her kids’ basketball games from beginning to end, explore different industries she’d always found to be intriguing, and look into taking some classes on AI so she could figure out what to do next.
But first, she needed to make sure she could afford it – and do it in a smart way. This would give her the peace of mind and confidence to go for it!
This is a hypothetical client scenario based on experiences across multiple clients.
HER GOALS
➡ Use 6–12 months of intentional sabbatical time rather than scrambling into the next job
➡ Build clarity around a career pivot into a new industry, possibly health & wellness
➡ Ensure financial stability while unemployed
➡ Create a clear timeline for when to return to work
➡ Use this transition period to build skills, connections, and confidence in the new direction
Her Biggest Fears & Challenges When Thinking About Her Sabbatical and Career Change:
➡ “How long can I afford to step away?” – Anxiety about defining the timeline before finances get too tight.
➡ “What if I run out of money before I figure out what’s next?” – Fear of burning through savings and having to settle for the first available job.
➡ “What will I do all day?” – Not used to having no structure, no calendar that runs the day.
➡ “How will I explain this to my family and friends?” Pressure from peers and family to bounce back fast, even if it’s not the right fit.
➡ “My family was on my health plan, what do I do?” – Concerns about finding new coverage and how much it would cost.
➡ “What if I can’t find my way into a new field?” – Worries about starting over and competing with people who already have years of experience.
➡ “What if this break hurts my chances of being hired?” – Fear that taking a sabbatical will be seen as a red flag by future employers.
Collette could have let fear push her straight back into the same kind of role that had started to feel like a marathon. Instead, she chose to pause with intention, using financial clarity to design a sabbatical plan that prioritized rest, exploration, and preparation for a more fulfilling next chapter.
smart financial planning for sabbaticals
Our Approach To Turn Your Sabbatical Dream Into Reality:
At Middleton & Company, we guide professionals like Collette through every phase of transitioning into a sabbatical and a new career path with the financial clarity, structure, and accountability they need to move forward with confidence.
Our 6-Phase Sabbatical Planning Program includes:
Phase 1:
Sabbatical Readiness
A full financial assessment to evaluate what’s possible
Phase 2:
Ideas & Limits
Space to talk, dream, and plan according to your unique situation
Phase 3:
Research & Development
Travel planning tips & inspiring reading materials based on where you are in your planning journey
Phase 4:
Execution
Personalized investment management & tax optimization, including corresponding directly with your CPA
Phase 5:
Homeward Bound
Planning the return to life and work
Phase 6:
Ongoing Planning
Year-round advice, support and adjustments before, during, and after the sabbatical
In this scenario, Collette partnered with us through 4 customized phases of our program. Since she wasn’t planning on taking a break until the opportunity presented itself to her, we didn’t plan years ahead for it. But there were still a lot of things we could do to meet her where she was!
✅ We completed a sabbatical readiness assessment so she felt like she could take the time off without worrying about how the money (and insurance!) would work itself out.
✅ We had regular conversations about feelings, thoughts, and ideas that surfaced during her sabbatical and how she wanted to incorporate her new perspective into her next role.
✅ We talked through and looked at different scenarios for her path forward. Each iteration got her closer and closer to deciding what was next and helped her to say no to things that didn’t seem to align with how she wanted the next phase to go.
✅ We took investment research, account management off her plate, and recreated a “paycheck” from her saved assets until she started earning again.
Our approach is structured and designed to feel easy for you. You’ll find that financial planning, travel guidance, and self-reflection are all woven naturally into our conversations. This is a meeting you won’t need to drive.
Just relax, chat with us, share your big dreams and goals, and we’ll take care of organizing the details and documenting your journey.
Outcomes
Collette turned her unexpected layoff into a 10-month intentional sabbatical.
🛑 She stopped the frantic job search spiral. Instead of scrambling for the first available role, she allowed herself to breathe, rest, and reset after years of deadlines and pressure that she hadn’t even realized had built up.
🌱 She invested in her well-being. She started therapy, built a daily exercise routine, and finally had the time to cook healthy meals and prioritize sleep. This helped her feel more like herself again. And it generated a spark for her next career move.
✈️ She embraced new experiences. Colette traveled to Amsterdam to meet up with a college roommate who had moved there, something she had wanted to do every time she saw her friend’s posts online.
🏀 She didn’t miss any of her son’s basketball games! She noticed she could be more present; she wasn’t thinking about whatever the next thing was. And she noticed that her son was pretty good – both athletically and in building team morale. She felt immense pride.
💡 She also took a short certification course to improve her AI prompting skills. She found that it expanded her curiosity and gave her a feeling of progress without the grind.
🧭 She gained clarity on her career direction. With space to reflect, she realized she wanted her next role to align with her values. She explored sustainability-focused health & wellness companies, and through informational interviews and some volunteer work, she confirmed her interest.
💰 She created a financial runway. By carefully managing unemployment benefits, severance, health coverage, and her investments, Collette maintained financial stability while taking the time she needed. Together, we mapped out a spending plan for her sabbatical, set clear “return-to-work” checkpoints, and managed her savings so she never felt panicked about money.
🌿 She reframed the career gap. Instead of being a setback, her unplanned sabbatical became a story of resilience and intentional transition, showing future employers that she used the time to learn, grow, and reposition herself with purpose.
📅 Before her sabbatical ended, Collette landed a new role at a mission-driven company that produces sustainable skincare products. She returned to work energized, aligned, and determined to protect her boundaries and values moving forward. She didn’t want to miss out on her kids growing up and on precious quality family time anymore!
Does this feel like you? Are you in a situation where you’ve been pushed into hitting pause? Turn this stressful time into an opportunity. Don’t go through this alone! Be curious about what this break could turn into. Let’s talk!
What’s the difference between the people who take a sabbatical and those who only dream about it?
Commitment.
Life will always be full of responsibilities. But when you commit to your future sabbatical, that’s when the magic happens – your dream starts becoming a reality.
We’re here to support you every step of the way: cheering you on, keeping you accountable, and offering the expertise you need for a smooth, confident journey. And beyond that, we’ll connect you with a community of like-minded people who’ll make the process even more meaningful and enjoyable.
You don’t have to do it on your own.