Whether your job transition is planned or unplanned, it’s essential to consider its potential impact on your finances. This checklist provides a useful reference for a conversation with your advisor. Together, you can prepare and navigate whatever your future holds.

Assess Your Financial Readiness

  • Review your current financial position, including monthly expenses and emergency savings, and assess the sources available to replace any lost income.
  • Identify essential vs. discretionary expenses to create a financial contingency plan.
  • Evaluate the impact of market volatility on the value of your assets.
  • Model different scenarios and create a responsive financial plan.

Understand Your Current and Future Income Sources

  • Analyze cash flow, including savings, investments, and other income streams.
  • Assess 401(k), IRAs, RSUs, SSARs, and PBRSUs for withdrawal strategies.
  • Determine tax-efficient withdrawal strategies to minimize tax liabilities.
  • Review pension options and how early retirement affects payouts.
  • If applicable, determine when it makes sense to claim Social Security and pension benefits.

Evaluate Insurance Coverage

  • If you have accepted a new job, review and compare your new employer’s health coverage options, considering coverage, deductibles, copays, network providers, and spousal/family coverage costs.    
  • If you have a health savings account (HSA), review its tax benefits and transferability.
  • If your transition is unplanned, review COBRA benefits and associated costs. Would a policy purchased through your state’s Health Insurance Marketplace (i.e., coverage purchased through the Affordable Care Act) be a better option?
  • Ensure you have adequate life and disability benefits and identify any differences in coverage between your new employer and previous employer.
  • If needed, develop a short-term plan to cover insurance gaps between jobs.
  • If you are over age 65, review Medicare enrollment options.

Reassess Investment Strategies

  • Align your investment portfolio with any changes to your risk tolerance and financial goals.
  • Rebalance assets to maintain financial stability during your transition.
  • Understand your retirement planning options and evaluate the pros and cons of consolidating your plans.

Secure Your Estate and Legacy Plan

  • Like all major life events, a career change should occasion a review and update of your estate documents and beneficiary designations (wills, trusts, power of attorney, etc.).
  • Consider how changes in your salary and benefits might alter financial goals, affecting your estate planning strategy.

How Cerity Partners Can Help

  • Provide personalized advice to help guide you through the many considerations of a job change.
  • Evaluate the impact of a job change on your finances and help you stay on track toward your financial goals.
  • Provide cash flow and tax planning strategies to optimize your financial outlook.
  • Offer investment strategy recommendations aligned with your short and long-term goals and risk tolerance.
  • Help you navigate insurance and estate planning considerations.
  • Guide you through buyout, pension, and Social Security decisions to maximize benefits.

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