How to Prep Financially When Changing Jobs
Special to The Truth
The average American will hold 11.7 jobs between the ages of
18 and 48, according to The Bureau of Labor Statistics. If a
job change is on your horizon, remember that a new salary
and benefits package bring new financial considerations.
“Changing jobs brings with it a myriad of financial
decisions. Take time to assess your financial situation and
make any necessary adjustments so you can start the new job
focused and ready,” says Valerie Radford, a vice president
of Strategic Initiatives at Prudential Financial.
As you’re making the switch, Radford says there are a few
things to keep in mind:
• Don’t Leave Money on the Table: Keep track of your 401(k)
if you had one at your previous job. You can simplify your
financial picture by bringing together any orphan plans
you’ve left in the investing universe. Also, make sure to
take advantage of your new employer’s 401(k) match feature,
if offered, and continue momentum by increasing your
contribution, if possible.
• Don’t Go It Alone: Consider using a third-party platform
to manage finances and benefits in one place that’s designed
to rebalance your goals as circumstances change. For
example, when you set up an account with LINK by Prudential,
you’ll be prompted to answer questions about what financial
goals are important to you and, in turn, will be offered
personalized solutions to help you reach them. LINK combines
the convenience of a digital experience with the knowledge
of a professional advisor who can walk you through this
important transition by phone, video or in-person. To learn
more, visit prudential.com/link
• Consider Your Bonus: If you’re receiving a sign-on bonus
or have an old bonus saved, determine whether this money
belongs in a short-term, no-risk account or whether a
longer-term approach with exposure to financial markets
makes sense.
• Budgets are Fundamental: If you’re making more money,
calculate if additional funds can be put into savings. This
is a great place to use a tool like LINK that allows you to
see all your money in one place, and can help you determine
where to direct extra funds. If you’re making less money,
you might need to see where to make cuts.
• Review Your Insurance: Take a breath before moving forward
with health coverage decisions. If you’re married, evaluate
both partner’s plans, not only for the more affordable
option, but also for each plan’s restrictions. For instance,
if one plan allows you to see doctors without referrals
while the other doesn’t, you’ll have to decide whether
that’s worth the extra cost. Finally, take a look at the
amount your new employer is offering for life insurance.
It’s often not enough. Consulting a financial advisor can
help you determine how much additional insurance to take
out.
Don’t let your financial goals get lost in the shuffle of a
job transition. A few strategies and tools can keep you on
track.
LINK by Prudential is an umbrella marketing name for
Prudential Customer Solutions LLC, an SEC-registered
investment adviser, Prudential Annuities Distributors, Inc.
and various subsidiaries of The Prudential Insurance Company
of America.
Courtesy StatePoint
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