Switching careers

Changing careers

Switching careers can change your financial landscape. Having a professional and a financial plan could help smooth the transition.

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Think holistically

Learn about 401(k) rollovers

Review your financial accounts

Consider all of the changes that may come with a new career, including the impact it could have on your schedule, work/life balance, relationships and finances.

See how you can literally take it with you when you change jobs or careers. Some 401(k) plans may even require it. If you are keeping your money with your employer, you could pay higher fees as an ex-employee.

In addition to savings and checking accounts, see what else you may have easy access to – ideally without a penalty. Accounts have different rules, so your advisor may be able to help, as could a refresher on Roth IRAs and HSAs.

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Learn about SEP IRAs

 How to negotiate your salary

Create a bonus tax plan

Annual contribution limits are higher for SEPs than Traditional and Roth IRAs — up to $57,000 or 25% of an  employee’s gross salary, whichever is less. Because of their rules, SEPs are most often used by people who are self-employed. Small businesses owners with few employees sometimes offer them as well. 

Two things to consider when asking for more: Know what your skills are worth  and the non-monetary compensation (like additional time off) you may want.

Bonuses are taxed differently from other income, so you may want to calculate how much you could owe before spending the full amount.  

1

Think holistically

Consider all of the changes that may come with a new career, including the impact it could have on your schedule, work/life balance, relationships and finances.

2

Learn about 401(k) rollovers

See how you can literally take it with you when you change jobs or careers. Some 401(k) plans may even require it. If you are keeping your money with your employer, you could pay higher fees as an ex-employee.

3

Review your financial accounts

In addition to savings and checking accounts, see what else you may have easy access to – ideally without a penalty. Accounts have different rules, so your advisor may be able to help, as could a refresher on Roth IRAs and HSAs.

4

Learn about SEP IRAs

Annual contribution limits are higher for SEPs than Traditional and Roth IRAs — up to $57,000 or 25% of an  employee’s gross salary, whichever is less. Because of their rules, SEPs are most often used by people who are self-employed. Small businesses owners with few employees sometimes offer them as well.

5

How to negotiate your salary

Two things to consider when asking for more: Know what your skills are worth  and the non-monetary compensation (like additional time off) you may want.

6

Create a bonus tax plan

Bonuses are taxed differently from other income, so you may want to calculate how much you could owe before spending the full amount.

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Consider Roth IRAs for your kids 

A child with a Social Security number is old enough to have a Roth IRA. Ok, they also need earned income (so document any income your child earned). Good to know: The annual $6,000 contribution limit applies to these accounts.

 

of Americans think it is important to learn about finance at home and in school (62%), compared to at work (18%).

The Financial Literacy 2020 Survey was conducted by Marcus by Goldman Sachs® in March 2020 among 2,516 Americans. Savings accounts defined as savings accounts, certificates of deposit (CDs) and money market accounts.

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This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs® but may not reflect the institutional opinions of Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.