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Are you supporting your financial plan? Don't let "lifestyle creep" ruin your financial future.
ST. LOUIS, MO, June 17, 2020 /24-7PressRelease/ -- It's been a tough year for Americans. Millions have lost jobs due to COVID-19. Now many are faced with job changes, which can bring up issues like cash flow, benefits, and retirement planning. It's important to know how this can impact your future, so here are a few questions to consider.
How will this affect your savings? Can you save more or do you need to cut back on spending? It's important to remember your financial plan is flexible. If relocating for your new position, you'll need to plan for moving expenses, as well as consider renting vs buying, and cost of living changes.
If you're fortunate enough to make more money, that doesn't mean you should spend more. Analyze your income vs expenses. Are you supporting your financial plan? Don't let "lifestyle creep" ruin your financial future.
Next, compare your retirement plans from your old and new employer. Will you have a new plan that these can be rolled over to? Check with your plan provider to see if it's a good idea to initiate a rollover or consider a Rollover IRA. If your new employer offers a retirement plan, consider contributing at least enough to receive the full employer match.
Do you have unvested or vested stock options from your former employer? You may lose your unvested stocks, but vested stocks might have exercise periods. Check with your old employer to see what steps should be taken. Private company stockholders should check to see if there are any clawback or repurchase rights.
Deferred compensation calls for a review of Plan Documents so you know the vesting schedule, distribution schedule, and yearly or lump-sum distribution options available.
Many changes accompany starting a new job. Staying on top of these can ease the transition and give you peace of mind about your financial future. If you're unsure about navigating these issues, a Financial Advisor can help you make informed decisions.
With 17+ years of experience in helping people achieve their financial goals, Mike Clark of The Clark Group of Visionary Wealth Advisors can help you. Contact Mike at [email protected], (618) 726-3011, or www.visionarywealthmikeclark.com.
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