What To Do When Changing Jobs: The 10 Item Checklist

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What To Do When Changing Jobs: The 10 Item Checklist

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Transitioning to a new job is an important milestone that can impact your financial landscape. Whether you're embarking on a career change or seizing a fresh opportunity, it's crucial to take proactive steps to manage your finances during this period of transition. At One Bridge Wealth Management, we recognize the significance of job changes and stand ready to assist you in navigating these financial adjustments. In this article, we'll outline ten essential actions to undertake when changing employers, ensuring a seamless transition with a focus on your financial well-being.

1. Assess New Benefits:

Thoroughly review the benefits package offered by your new employer. This includes healthcare plans, retirement options, and any additional employee perks. Compare these offerings with your current benefits to understand any changes or adjustments required.

2. Consolidate Retirement Savings:

If you possess a 401(k) or other employer-sponsored retirement plan from your previous job, consider consolidating it into your new employer's plan or rolling it over to an individual retirement account (IRA). This streamlines your retirement savings strategy and facilitates a cohesive investment approach.

3. Evaluate Healthcare Coverage:

Examine the healthcare coverage provided by your new employer, including factors like premiums, deductibles, and network providers. Ensure the plan aligns with your healthcare needs and those of your family members, if applicable. Ensure there is no gap in coverage, and if there is, consider filling it with COBRA or Short Term Medical Insurance.

4. Adjust Your Budget:

Revisit your budget to accommodate any changes in income, benefits, or expenses stemming from your new job. Make necessary adjustments to maintain financial stability and progress towards your financial objectives.

5. Review Your Financial Plan:

Engage with your financial advisor to review and update your financial plan in light of your new employment situation. Tailor your plan to reflect changes in income, benefits, and long-term financial goals.

6. Understand Tax Implications:

Familiarize yourself with the tax consequences associated with changing employers, particularly concerning severance pay, bonuses, or stock options from your previous job. Seek guidance from a tax advisor to optimize your tax strategy.

7. Assess Insurance Needs:

Evaluate your insurance requirements, such as life insurance and disability coverage, offered by your new employer. Determine if additional coverage is necessary to safeguard yourself and your loved ones against unforeseen circumstances.

8. Update Beneficiaries:

Review and update the beneficiaries listed on your retirement accounts, life insurance policies, and other financial assets to ensure alignment with your current wishes and circumstances.

9. Seek Financial Guidance:

Consider seeking guidance from a financial advisor to navigate the financial implications of changing employers. A financial advisor can offer personalized advice and support, empowering you to make informed decisions that align with your financial objectives.

10. Negotiate

Job transitions is one of the main times an individual can negotiate for more money or more vacation days. Use this to your advantage.

In conclusion, transitioning to a new job presents both opportunities and financial considerations. By following these ten essential steps and leveraging the experience of One Bridge Wealth Management, St. Louis Financial Advisors, you can navigate this transition with confidence, setting the stage for continued financial success in your new role.

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