5 tips for changing jobs
If you’re considering a professional change, this may be the perfect time to review your financial to-do list. Getting your finances organized in advance can help you prepare to embark on the next stage of your career with confidence.
These tips are designed to help make your transition as smooth as possible:
Tip #1: Be prepared to leave your current job.
- Give your employer ample notice that you plan to leave.
- Prepare for your exit interview.
- Make sure you receive any compensation owed to you.
Tip #2: Take a holistic look at your financial situation.
- Review your assets and your debt.
- If your compensation will change, create a new budget.
- If necessary, budget for the interim period between the end of your current job and your first pay date for your new job.
Tip #3: Review the benefits offered by your new employer.
- Learn about your new employer’s retirement plan benefits and how they differ from your previous employer’s plan benefits.
- Find out if your new employer offers matching contributions to its retirement plan.
- Review additional or different types of benefit coverage your new employer provides and determine which are most important to you.
Tip #4: Take advantage of your fresh start by setting new financial goals, such as:
- Increasing retirement plan contributions
- Paying off debt
- Saving for a major long-term goal, such as buying a house
Tip #5: Manage your retirement assets.
Review all of your distribution options. These may include:
- Leaving your assets in your current plan. Review your current plan provisions before making a decision.
- Rolling your money into an Individual Retirement Account (IRA). An IRA may have different fees, so check before you decide.
- Moving your savings into a new employer’s plan. Examine the investment options, fees, and provisions of the new plan before making a decision.
- Taking a cash distribution. Consider this option carefully; depending on your age, you may incur taxes and penalties on your savings.
A financial professional may be able to help you understand all of your options during this life transition.