CHANGING JOBS? HERE’S A FINANCIAL
CHECKLIST
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If you’re starting a new job, you want to make the right financial choices in line with your personal situation.
Here is list of some essentials to consider:
☑️ EMPLOYEE BENEFITS SUMMARY
Many employers will provide a guide that summarizes the details of your work benefits. Grab this!
☑️ NEW RETIREMENT PLAN
Check to see what kind of plan they have. Learn about matching, vesting schedules, and investment choices. There is often a separate handbook for the employer plan to answer these questions.
☑️ OLD RETIREMENT ACCOUNT
You’ll want to consider rolling over your previous plan(s) either into your new work plan or into an IRA. Generally we suggest rolling into an IRA because it gives you more flexibility and more choices.
☑️ OTHER BONUSES
Find out if your new employer offers any stock options or executive bonus plans.
☑️ INSURANCE OPTIONS
The biggest one will be the major medical plan. This might also include dental and vision. There is often a separate summary for these plans as well.
Next, see if they offer any short or long term disability insurance. You’ll want to know the amount of the benefit and if they pay the premiums. This will help you calculate any potential coverage gaps.
Then see if they offer any life insurance. Coverage is usually basic, but employers often offer voluntary coverages too.
*If you initially opt out of benefits like these, you’ll have to wait until the next open enrollment (typically each Fall).
☑️ CHECK FOR HSA OR FSA
Your employer may also offer these special savings benefits. The HSA is especially useful long term if a high deductible health plan is right for you.
☑️ UPDATE YOUR BENEFICIARIES
Do this on your life insurance and retirement plan.
☑️ CHOOSE THE RIGHT WITHHOLDINGS
On your W4, elect what kind of tax to withhold. Go to the IRS withholding calculator or consult your tax professional for help.
☑️ MISCELLANEOUS STUFF
They may offer other supplemental financial benefits. Depending on your situation, they could be helpful. When in doubt, consult your financial professional.
💡PLANNING TIP
In general, we’d say that work benefits are “bonus benefits.” Meaning, your work benefits should supplement your personal plan.
NEED HELP?
Our team helps clients daily with choices like these. Schedule time with one of our advisors for a complimentary consultation.
Email us at exponent.group@thrivent.com or call 309-431-1496.
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