Often a new job decision can affect the entire family’s finances, especially if relocation is involved. Depending on your position, benefits or relocation costs may be negotiable as part of your job offer. Discuss with your prospective employer, and get negotiations in writing. Changing jobs is a life event, and as most investors know, life events usually involve important financial decisions. Consulting a financial planner or tax adviser can help with important decisions that will affect the family’s finances. Here are a few questions that can help you determine how the decision will affect your family.
Employee Benefits
- Are there any restrictions or a waiting period for insurance benefits?
- Will you need COBRA coverage during the period before you are eligible for your new employer’s insurance?
- What types of insurance are offered: Health, vision, dental, life, disability?
- What kind of family plans are offered for a spouse or children?
- Are there any fringe benefits that will be considered part of compensation?
- Is there a company retirement plan available?
- If there is a 401(k), will the employer match your contributions?
- Are there stock options available?
Financial Picture
- Have you recalculated your household budget to reflect the change in salary?
- What are the living expenses in the new city?
- If relocating, will your spouse be able to find employment?
- Will you have to tap into your emergency fund while your spouse seeks employment?
- Will children need daycare or after school programs?
- Will you need to consider private schools rather than public schools?
- Will you need to move college savings plans to a different state for the tax advantage?
- Will you need to make changes in your life or disability insurance coverages to maintain your lifestyle in the new city?
- Will Wills, trusts or health care directives need to be updated for a new state’s laws?
Housing
- Is there a home that needs to be sold?
- Will the employer cover or reimburse any moving and relocation costs?
- Do you plan to purchase a home in your new city, or is renting an option until you get to know the city better?
- If you choose to rent before purchasing a new home, will you need a storage facility for belongings?
- If you chose not to sell your current home, will you rent it as an income property?
- Have you considered the changes in insurance for homeowners, renters or umbrella policies in your new city?
Investment Planning
- Will changing jobs affect any current stock options or profit sharing options?
- Will there be a change in household liquidity needs?
- Will you still be able to work with your current financial adviser or tax consultant in your new city?
- If you are earning more, will you increase your retirement savings?
Tax Planning
- Will your new income affect your tax bracket, thus requiring you to change your withholding?
- Will you have a home office you can take tax deductions for?
- If moving investment accounts or rolling over retirement plans, have you consulted your tax adviser to ensure the rollover does not become a taxable event?
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
