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HERE’S A CHECKLIST
FOR CHANGING JOBS
A
few generations ago, it was not uncommon for
workers to stick with a single job for their whole
careers. But for many of us today, frequent job
changes are a fact of life: The average employee
tenure is just over four years, according to the Bureau of Labor
Statistics. So, assuming you’re going to switch jobs a few times,
you’ll want to be prepared. Here’s a checklist of things you can
do to smooth these transitions and help your financial situation:
• Build an emergency fund. Some of your job changes may be
involuntary, so you’ll want to have a cash cushion handy – just
in case. One smart move would be to build an emergency
fund, containing three to six months’ worth of living expenses,
with the money kept in a liquid, low-risk account.
• Consider your options for your former employer’s 401(k)
plan. If you had a 401(k) plan with your former employer, you
have three main options: You could leave your money in the
plan, if the employer allows it; you could move the money into
your new employer’s plan, if permitted; or you could roll the
funds over to an IRA. You’ll want to weigh the “pros” and “cons”
of these choices carefully before making a decision.
• Choose investments from your new retirement plan. If
your new employer offers a 401(k) or similar plan, you’ll need
to choose the investments within the plan that are most
appropriate for your goals, risk tolerance and time horizon.
Contribute as much as you can afford to the plan, and consider
increasing your contributions every time your salary goes up.
• Make sure you have health insurance. The health insurance
offered by your new employer may not begin the minute you
start your job. Given the high costs of medical care, you’ll need
to make sure you are protected until your coverage kicks in. So,
for that interim period, you may need to consider the federal
health insurance marketplace, COBRA continuation coverage
or private medical insurance. You might also be eligible to
be covered under your spouse’s health insurance. And you
may want to learn what your options are for health savings
accounts (HSAs), if available.
• Review your new benefits package – and take steps to
fill gaps. Your new benefits package may include life and
disability insurance, but these group policies may not be
enough to fully protect you and your family. A financial
professional can help you quantify your protection and
insurance needs and offer guidance on how much coverage
you may require.
• Understand your income tax considerations. Getting
a new job may involve income tax implications, such as
changes in your tax bracket, severance pay, unused vacation
and unemployment compensation. And if you are thinking
of exercising stock options, be aware that this, too, can be a
taxable event. Finally, if you have to move to take a new job,
you may incur some relocation and job hunting expenses that
could be deductible. You will need to discuss all these issues
with your tax professional.
Starting a new job can be exciting – and challenging. But
you may be able to make your life easier by putting the above
suggestions to work.
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.
Edward Jones, its employees and financial advisors cannot provide
tax or legal advice. You should consult your attorney or qualified tax
advisor regarding your situation.
Matt Dudkowski, AAMS® | Financial Advisor | 1007 Mt Royal Blvd. Pittsburgh, PA 15223 | 412.487.3300
[email protected] | www.edwardjones.com | Member SIPC
Matt Dudkowski has been a financial advisor with Edward Jones since 2002, serving individual investors in
the Pittsburgh area from his Shaler Township office. In January of 2015, Dudkowski accepted an invitation
to become a limited partner with the firm.
Since joining Edward Jones, Dudkowski has obtained the professional designation of AAMS®. Prior to Edward
Jones, Dudkowski, as a CPA, worked at the H.J. Heinz Company, and at Ernst & Young LLP.
He currently serves on the board of directors for Keystone Wellness Programs, a local nonprofit organization.
A native of Butler County and a graduate of the University
of Notre Dame, Dudkowski resides in Gibsonia with his wife,
two sons and daughter.
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