These are exciting times.
Let’s make the right financial decisions
for your situation.
Congratulations, you’ve landed a new job. You’re thrilled and have shared the great news with your family and friends. You have a well-thought-out 30-60-90-day plan for climbing the learning curve, delivering early results, and making a lasting impression on your new employer. However, during this time, you’ll also be faced with financial considerations and decisions to make that will have an impact on your financial plan and financial well-being.
If you have changed employers or you're thinking about a job change, there are many important considerations to think of and plan for:
- A difference in your income. People change employers and jobs for different reasons; new opportunity, increase in salary, a promotion, just to name a few. The key to dealing with any change in household income, whether an increase or decrease, is to revisit your financial goals and reassess your cash-flow and budget. If you are earning more, how can you most effectively put this money to work for you? If you are making less, what has to be adjusted to achieve your financial goals?
- Cost and coverage of your health benefits. Depending on your needs and the coverage your new employer offers, you may need to budget for replacing benefit coverage at your own expense. Is there a health spending account (HSA) that can give your family the flexibility you need? Be sure you do your research to understand how much this may cost. Also, does employer offer immediate coverage or is there a waiting period. You may be able to negotiate this, especially if you are a more senior employee.
- Group Insurance. Insurance is an essential element of any sound financial plan. Different kinds of insurance help protect you and your loved ones in different ways against the cost of accidents, illness, disability, and death. The insurance decisions you make should be based on your family, age, and economic situation. It is likely that your new employer offers group long-term disability and life insurance, but is it adequate for your personal situation?
- Pension or group retirement plan. Most employers offer a group registered retirement savings plan, fewer and fewer offer a defined contribution pension plan. Find out what your employer offers, will match, what are the investments options, associated fees, and, the vesting schedule. These are all critical factors in deciding what’s right for you, your family, and in light of your broader financial picture.
- Leaving your past employers group retirement savings. Deciding what to do with your retirement savings from your previous employer may not be your first consideration, but it is essential. When it comes to Group Retirement Savings plans, you are generally offered a variety of options including converting it to a different program, transfer it elsewhere, etc. If you had a defined benefit plan, you might have the option of remaining in the pension plan or taking the commuted value and transferring it to a Locked-In RRSP. I can help you cut through the jargon and help you understand your options.
- Stock Options/Restricted Stock Units. If you’re lucky enough to be offered or given Stock Options and/or Restricted Stock Units, you’ll want to find out about the terms, restrictions and vesting period of your new plan. If you had them at your previous employer, be sure to determine how your job change might affect existing employee stock options. But whatever you do, if you have stock shares or options, don't forget about them.
I know it’s probably getting a little overwhelming at this point, but it’s very important you understand your options and make the right decisions for your situation. A job transition can present many financial considerations, choices, and decisions. Let me help support you so that you can make financial decisions with confidence and have peace of mind.
Your financial future is important. Let me be a part of your support team.
Contact me at 416-699-4550 or send me an email at email@example.com for a no-obligation consultation. You can also click here if you want to send me a question.