Changing jobs is more than just updating your LinkedIn profile or learning a new office culture; it’s a pivotal moment for your financial life. Whether you’re advancing in your career, switching industries, or starting anew, the decisions you make during this transition can have lasting impacts on your wealth. From managing retirement accounts to adjusting benefits and taxes, here’s what you need to know to protect and grow your financial future.
How to manage 401(k) when considering a career change
If you’ve been contributing to a 401(k) or similar plan, you typically have a few options:
- Leave it with your old employer
- Roll it over to your new employer’s plan
- Transfer it to an IRA
- Cash it out (not recommended due to taxes and penalties)
- Rolling over your retirement account into an IRA or your new employer’s plan can help you maintain tax-deferred growth and simplify your financial life.
Benefits of working with a fiduciary advisor when changing jobs?
A financial advisor can help you evaluate your rollover options, avoid costly mistakes, and align your retirement strategy with your broader financial goals. Firms like Fairvoy Private Wealth, a registered investment adviser, specialize in retirement and income strategies and offer fiduciary guidance—meaning they are legally bound to act in your best interest.
Health insurance gap coverage during a job transition
If your new job has a waiting period for benefits, you’ll need to bridge the gap in health coverage. COBRA, marketplace plans, or short-term insurance can help.
Also, review your new benefits package carefully, including:
· HSAs or FSAs
· Life and disability insurance
· Wellness programs
What are the benefits of working with a Financial Advisory firm with health coverage gap options?
An advisor can help you compare benefit options and identify gaps in coverage. Fairvoy’s insurance and trust services are designed to help clients protect their wealth and plan for contingencies, especially during transitional periods.
What Tax Considerations should you consider during a career change
A job change can affect your tax situation:
- Adjust your W-4 to reflect new income
- Plan for sign-on bonuses or severance
- Consider state tax implications if relocating
Why you should work with a fiduciary advisor on tax considerations during a job transition
Tax planning during a job change can be a complex process. Fairvoy offers tax planning services that help clients optimize their tax strategy and avoid surprises. Their team collaborates with CPAs and other professionals to ensure your financial decisions are tax smart.
Consider your equity compensation during a career change
Understand the vesting schedule and tax implications of any stock options or equity compensation you’re leaving or gaining.
Why work with a financial advisor?
Fairvoy offers stock option strategies and alternative investment guidance to help clients make informed decisions about equity compensation. Their advisors can help you evaluate timing, tax impact, and integration into your overall portfolio.
How to manage finances when changing jobs
Even with a salary bump, a job change is a prime opportunity to revisit your budget and reset your financial priorities. Transitions often come with new expenses and lifestyle shifts, such as:
- Moving costs
- Commuting changes
- Adjustments in benefit contributions
- Wardrobe or equipment needs
This is also the perfect moment to reassess your financial goals. Are you saving enough for retirement? Do you have a solid emergency fund? Are you on track for major milestones like buying a home or funding education?
Why work with a financial advisor like Fairvoy is beneficial?
A financial advisor, especially one with a fiduciary standard like those at Fairvoy Private Wealth can help you build a budget that reflects your new income, lifestyle, and long-term goals. Their expertise in cash flow optimization and comprehensive planning ensures that your financial strategy evolves with your career, not just your paycheck.
Final Thoughts
Changing jobs is a major life event—and a prime opportunity to make smart financial moves. By proactively managing your retirement accounts, benefits, taxes, and budget, you can turn a career shift into a wealth-building moment.
Partnering with a firm like Fairvoy Private Wealth—known for its fiduciary commitment, personalized portfolio management, and certified expertise—can provide clarity and confidence during this transition. Their team is equipped to guide you through every stage of your financial journey, ensuring your next career move is also a step forward in your financial life.