Life Events

Job Change
Starting a new job brings exciting new opportunities. It also brings important financial considerations.

Consider the following:

Don't leave your retirement savings behind.
If you've accumulated assets in the old company's retirement plan you have several options:
• You may be able to leave your assets where they are or you can transfer the assets to the new company's plan (if there is one), which could be beneficial if the new plan has more or better investment options or lower fees. Transferring the assets can also allow you to consolidate your assets.If your new employer has a 401(k) plan, features, such a loan provision, may allow you to borrow against your assets in case of an emergency.
• You can also roll your assets over to an IRA. This will allow you to choose from an array of investment options for your retirement assets. Starting with 2002, you were allowed to rollover both your pretax and after tax contributions.
• While cashing out is usually an option and can be tempting, it is not generally recommended. Besides missing out on the potential tax deferred growth, you will also be subject to income taxes and penalties for early withdrawals.

Don't forget your health.
If your new employer doesn't offer a health plan or if there is a waiting period before being eligible to participate in the plan, you should try to find interim coverage. You may wish to continue your coverage from your previous employer using a federal law called the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Of course, you have the option of purchasing your own policy. In either case, you are responsible for paying the premiums.

If you're considering taking a new job, we suggest that you:
Consider the cost of living.
If you are moving to a new location for your new position, be sure to compare the cost of living in your new city versus the old. A higher cost of living in your new city could mitigate any salary increase you gain.

Be sure to consider other benefits.
When changing jobs in addition to salary, compare other benefits as well. Perks such as Flexible Spending Accounts (covers childcare and health care costs with pre-tax dollars), life insurance, disability insurance, stock options, health club memberships, etc. may be included in your new benefits package. Be sure to consider the value of the entire package when considering changing jobs.

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