Financially Preparing to Quit
The job market has shifted into overdrive. When Coronavirus struck the world, the economy was devastated but things have changed and we are regaining momentum. A shake-up might not be a bad thing. When you take a look at the status of the job market things are looking very positive for folks looking for employment. Wages are rising according to experts and it looks set to continue.
Jobs are plentiful and the future could be rosy for many. Statistics have shown that a record 4.4 million Americans quit their jobs in September as the number of open positions available nationwide seems to be empowering workers to have several choices when it comes to earning a living in America. The Bureau of Labor Statistics said that in The United States there were 10.4 million open jobs in September. The worker shortage crisis continues and if you are trying to make a change then this could be the best time to do so.
Before you hand in your notice and begin looking for a new job title you need to get all your budgeting and planning in place. Preparation makes the difference between failure and success. If you are going to quit your job then you need to be prepared for the possibility of a turbulent time financially. If you don’t prepare, you will be walking into something that isn’t easy to navigate and could end up in dire straits. David Beckerman, Senior Vice President of David Lerner Associates helps people with personalized serviced complimentary consultations and says, “Planning is key when you are making any changes. Whether you are planning for retirement or a change in the way you earn your living you should have your bases covered. A sensible middle ground of investing is what we aim to achieve for our trusted clients and no matter what you need our goal is to help you to tackle the next chapter of your lives.”
Decide why you are leaving your job before you leave officially. Are you looking for more flexibility or is it about money? Examine whether your reasons are valid or if the grass just looking greener on the other side?
TIPS FOR LEAVING
Contract: Review your original offer letter or contract and find out what you are bound to and what your agreement allows.
Budget: Make a detailed inventory that details your monthly cash inflow and spending.
Retirement savings
A 401(k) could be left in your current employer's plan if permitted, however, it also means that you can’t pay ion anymore. If you do secure a new position it is possible that you may be able to roll it into their plan. Explore rolling your 401(k) into an individual retirement account (IRA).
Being able to learn new skills might be a factor but perhaps you could ask your current employer to help you grow in this regard. Looking at all the angles means you are more informed and not just reacting emotionally. Make an informed choice and you will be far happier with the result.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC