Switching careers
Changing careers
Switching careers can change your financial landscape. Having a professional and a financial plan could help smooth the transition.
1
2
3
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.
4
5
6
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 $58,000 or 25% of an employee’s gross salary for 2021, 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.
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.
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.
6
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 first learned about managing their finances once they started working.
The Consumer Sentiment Survey was conducted by Marcus by Goldman Sachs in March 2021 among 1,501 Americans. Savings accounts defined as savings accounts, certificates of deposit (CDs) and money market accounts.
Would like to see other Money Guides by Life Stage?