Key Takeaways

• • • • • • • • • Changing jobs during your career doesn’t have to damage your long-term financial goals, including retirement savings.
                  
                • Paying attention to detail as you consider a new job and start a new position pays off in the long run.
                  
                • Consulting your financial and tax advisors will help you avoid costly mistakes.

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    Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.

    Many of us find ourselves changing jobs more frequently than in decades past. Our grandparents and great-grandparents mostly worked at the same company for decades with predictable financial results at retirement: a pension, Social Security and, perhaps, some stock awards.

    The U.S. Bureau of Labor Statistics reported that individuals born at the tail end of the Baby Boom held nearly 13 jobs from ages 18 to 58, resulting in a different financial picture at retirement, including:

    • Multiple 401(k) plan accounts to manage
    • Potential interrupted savings
    • More complex tax and budget considerations

    Read on for tips on how to save money, manage retirement accounts and other benefits without compromising your financial goals.

    Before You Change Jobs

    Even when a new position is a step up in your career, in an industry you’ve wanted to join, or at a company that you’ve long admired, consider more than salary before you make a change.

    • Compare your current 401(k) plan match and investment options with those of the potential employer.
    • If your current or potential employer offers stock awards, consult a financial advisor to see how they affect your overall investment plan.
    • Review any stock options or unvested awards and consider the vesting schedule before making a move.
    • Examine the potential employer’s benefit plan carefully, especially if you or a family member have ongoing health needs. If the potential employer has a high-deductible health plan, consider a Health Savings Account (HSA) and explore any matching contributions from the employer.
    • Factor in additional costs of the new job, such as a longer commute, a change from remote to in-person work, paid parking, or an updated wardrobe for a new dress code.

    When You’ve Decided to Take the Plunge

    Once you’ve decided to change jobs, make sure to tie up loose ends before leaving your current position. If there’s a chance you may be asked to leave before completing a notice period, prepare everything in advance.

    • Check what you’re owed when you leave, including unpaid commissions, accrued paid time off, or bonuses.
    • Review stock options and stock award vesting schedules and exercise them if allowed.
    • Make sure your emergency fund covers any gaps if your new paycheck is delayed.
    • Take care of last-minute health and dental needs like checkups, prescriptions and teeth cleanings. If your new benefits have a waiting period, research interim coverage through COBRA or the healthcare marketplace.
    • If you have a flexible spending account, submit receipts and make purchases to use your balance before leaving.

    Consider Your Retirement Account

    Keeping your retirement savings on track is crucial when changing jobs. Consult a financial advisor and consider the following:

    • Make thoughtful choices when enrolling in your new plan: maintain contributions and select investments that align with your financial goals.
    • If the new plan has a waiting period, continue saving through other options:
      • Increase contributions once you’re eligible.
      • Save in an external retirement account.

    You also have options for your former employer’s retirement plan. Consult a financial advisor to determine the best choice for you.

    • Leave your assets in the old plan if allowed.
    • Roll savings into the new employer’s plan if rollovers are permitted.
    • Move funds to an Individual Retirement Account (IRA).
    • Take a lump-sum distribution—note this comes with a 10% penalty and mandatory 20% federal withholding, so consult your advisor first.

    Changing jobs is common today, but careful planning ensures your savings and retirement stay on track. Researching benefits and making thoughtful financial decisions now will help you transition smoothly without a costly setback.

    Ready to review your accounts and retirement options? Visit a Lake City Bank branch or call our One Call Center at (888) 522-2265. Our team can provide guidance and, if needed, connect you with a financial advisor for specialized support.

     

    Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.