Changing jobs means changing benefits, changing your salary, your retirement options and possibly even moving. If you have worked hard to change your career, you do not want to let switching benefits detract from the positive aspects of your new job. This is a stressful time since you are focusing on making a good impression on your new boss and coworkers, but your financial decisions are still important and should be considered carefully.
1. Health Insurance
Generally there is a waiting period at a new employer before you qualify for health insurance. You still need health insurance coverage during that time. You can choose between using Cobra insurance or a short-term health insurance policy. The short term insurance policy will cost less, but is catastrophic insurance, which means you will have a high deductible to meet before it starts covering your medical bills.
When you sign up for new health insurance at your new employer’s you may have different policies to choose from. Choose the most affordable plan that will give you good the coverage you need. If you do not need a lot of coverage you can opt for a cheaper plan.
2. Retirement Benefits
A new job means a new retirement plan. Many people leave a trail of 401(k)s behind them. They forget to roll their 401(k) over or figure it is too complicated. You can roll your 401(k) into an IRA at an investment firm or at your bank. This allows you more control of which stocks you use, plus it consolidates your retirement contributions to one place.
There may be a waiting period before you can begin contributing to a 401(k) at your new employers. If this is the case do not get out of the habit of contributing to retirement. Set up a monthly contribution to an IRA account until you qualify for your employer’s 401(k). Sign up for the benefits and any matching contributions you qualify for.
3. Budget
Take time now to work out a new budget with your new salary. This may mean you have found more money to put towards paying off your debt or increasing your retirement contributions. Before you increase your spending in any area consider getting out of debt and increasing your savings a priority now. Making the change when your salary increases is easier than cutting back after you have formed spending habits.
4. Moving
If you are moving for your new job, be sure to scout out your new area before signing a lease. You should also use a financial moving checklist to make sure you change all of the addresses you need to, close accounts, and keep yourself from late payments and other hassles that come with moving.
