A new job can be both exciting and overwhelming. Exciting, when we consider we may have better health insurance benefits, a higher salary, or more vacation time. Overwhelming, as we are faced with a series of new financial decisions that need to be made about health benefits and retirement accounts.
As we select our new benefits, we should remember to keep track of the benefits we had at our previous job. For many of us, our prior retirement plan is the first benefit that comes to mind. Some plans may allow us to keep our investment account where it is while others will require us to move it within a certain amount of time. It is important to note that since contributions to traditional retirement accounts are given special tax breaks; withdrawals from the plan may be subject to penalties and taxes. A financial advisor can help outline our options and determine which one is best for us.
It is also important to evaluate our life insurance needs when we move to a new job. If we had a life insurance policy at our previous employer, chances are that coverage ended when we left. This is the ideal time to determine whether we will need to add additional life insurance to keep our protection level consistent.
- Does my new employer offer a retirement program? If so, how much money should
- I contribute, and does my employer offer a match?
- If my new employer does not offer a program how do I plan to save for retirement?
- During this transition will I need to dip into my savings?
- What are my options for moving my retirement plan from my previous employer?
- Did my previous job offer life insurance that I will need to replace?