Your Job Transition Financial Checklist

Benjamin Haas |





It’s rare for someone to work their whole career with one company anymore. So one way or another, they will go through a job transition; a period of time where their financial lives are in flux and their financial plan needs to be reevaluated. Whether a new career, a termination or a partial retirement, a job change can be a stressful time, especially as you consider the immediate changes to your daily life, such as replacing your paycheck.  

So here are a couple of common financial planning considerations for your job transition period.

  • First, check your cash reserve and liquid assets. What of your savings can you get your hands on quickly, for emergencies or opportunities that may arise during this transition period?
  • At the same time, review your expenses. This is the perfect time to cut the excess in your spending. Can you pare back on your cell phone or cable package? Can you plan more meals and eat out less? Other suggestions include making your morning coffee at home instead of paying the premium for Starbucks and checking your subscriptions for services you don’t use.
  • Look into your unemployment eligibility and file, if necessary.
  • If you have a severance, make sure you understand how and when this will be paid to you. This may impact your income tax liability and/or be dependent on other future employment.

A change in job may also mean a change in the foundational parts of your financial plan, such as employer provided benefits like health insurance. It may also require a review of employer provided retirement savings accounts like 401(k) plans, pensions, stock options, etc.

  • Review the paperwork you should receive from your employer regarding COBRA insurance. At the same time, you may want to review your spouse’s health insurance to consider the best/most efficient way to cover yourself during this time of transition.
  • Once you are no longer an active participant in the company retirement plan, you may want to assess how these retirement benefits will be managed moving forward. Consider talking to an advisor about your options.

Finally, reassess your financial plan.

  • If your compensation has changed or you now have new retirement benefits, you should review the assumptions you previously made within your retirement plan to account for this new financial information. A strategic financial plan aims to help realign your personal values, vision and wealth, especially when new information needs to be considered.

If that all seemed like a lot to work through on your own, give us a call. We’re here to help align your personal values, vision and wealth, especially during times of transition. You need not make big financial decisions on your own.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Article Tracking # 1-578899   Video Tracking # 1- 584552