A New Job Can Mean A Fresh Financial Start – Guest Post
A new job can provide uncertainty and excitement other than just income. You should take advantage of your new job to take charge of your finances by making a proper budget to cover both short and long term goals. Check the benefits and retirement plans offered by your new employer in order to maximize all financial options. Your new job can definitely provide with a fresh financial start, you just need to put your mind to it.
Retirement and Savings
Check your new employers’ retirement plans such as 401k and IRA. Decide how to manage your saving accounts based on the ease of use or maximum personalization options.
1. Check your 401k. Get in touch with your previous employer to know your old retirement plan options. Depending on the employer, you could leave your old 401k plan untouched. If you are unable to keep your previous plan, you will have to transfer it to the new employer. This type of transfer is called a rollover, which could be easier to manage. With fewer accounts to manage, check the features of the new 401k plan of your new employer.
Moreover, raise your contributions to your new 401k if possible. Experts suggest having at least a 10% contribution to meet long-term goals. Having a comfortable retirement life, with properly managed savings, is the best way to plan.
2. IRA rollover. An IRA rollover provides the opportunity to personalize your account. You can choose from a vast amount of mutual funds provided by the market to use on your IRA. However, an IRA rollover will also require that you spend more time doing research and investment tracking. Check all fees for both a 401k and IRA rollover to determine which choice is better for you.
After you have decided where to place your retirement funds, you should update how you allocate your assets based on the new salary. Do some fund research and check your asset distribution. Learn about the benefits of traditional and Roth accounts based on your new tax bracket and income.
Ask your new employer about the financial benefits offered. Most benefits can help your finances such as gym membership discounts or food allowances. Depending on the employer, you may even get discounts on purchases at certain retail stores or savings on service plans like cell phones.
In addition, check for dental, health, and eye insurance policies with your new employer. Know if the new employer offers manageable medical and health related care accounts that cover such expenses. If you are married, check how the new plan can benefit both you and your partner based on previous healthcare coverage.
Create a Budget
You should adjust your budget based on your new salary and benefits. Check your tax-withholding rate to get an estimate on how much to withhold by using an IRS calculator. By doing this, you should break even during tax time. If your new job comes with a higher salary, consider whether to save or spend more based on your long-term goals and new budget.
Getting a new job provides you the chance to a fresh financial start. This financial start should be focused on controlling your income to maximize savings and overall expenses. Take advantages of the many benefits that a new job may provide based on your lifestyle to properly manage your finances.
This article is provided by Sam courtesy of Credit Season, a consumer finance website providing information and tools on loans for people with bad credit and other personal credit services.