Well, congratulations on the new job! Excited? I hope you are!
Whether career change means you are stepping into an executive role, moving to a new company, or changing industries altogether, there’s a lot to think about.
Today we are talking about career change and the financial decisions you’ll need to make about your new job and some about your old one.
Let’s take a good look at the group benie’s!
Most often, employer group benefits are the most affordable way to obtain coverage for you and your family, especially for health, dental, and life insurance, 401K, and Long and Short Term Disability. Many employers offer legal services, gym discounts, and health and commuter savings plans as well!
Your new employers may host group benefits selection through a website and oftentimes the company will send you a benefits enrollment package in pdf format. Review all of your benefit options with your financial professional. They can help you weigh the benefits and out-of-pocket expenses against your budget and goals. Don’t miss an opportunity!
Don’t leave anything behind!
Don’t forget about your retirement plan savings that you’ve already invested in with your previous employer. You typically have three options: 1. The funds can stay where they are. 2. You can transfer them into your new employer’s plan. or 3. You can roll them into a traditional IRA.
I like the traditional IRA because it helps with consolidation and many times allows for more investment options. I have clients in their 40’s who, in the past 25 years, have had 8 employers and retirement plans with each. Let’s face it, in this day and age you never know where you will end up 10 years from now, having all of your funds in one location where you can keep an eye on your investments makes life a lot easier.
Start saving again!
Find out what your new employer is offering. Is there a company match? ROTH option? Automatic enrollment? Automatic escalation? No matter what, just start!
Review your options with your financial planner and put as much money in as you can afford right now, then plan to increase that amount annually until you are at the maximum deposit amount. This is one of the best ways to grow your savings and fund your retirement.
Many times life gets busy and we forget to log back in and enroll and can miss a precious opportunity to save and have our funds grow and compound. Set a reminder on your phone so you don’t miss out on this most important benefit.
Take advantage of new offers and supplement where needed.
Don’t leave any money behind! Make smart choices with your old employer’s retirement funds.
Make elections to start saving as much and as soon as possible!
Celebrate your new opportunities and make the best next decision! Reach out to your financial planner, or start a relationship with a new planner that can help you with a plan that meets your current and future goals. At Sephton Financial Services, we help you plan and meet your goals, schedule a free consultation today at www.sephtonfinancial.com.
Thank you for joining us for this episode of Widow & Wisdom (your wealth edition), where your mindset and money matter most.