The purpose of Money Talk is to improve readers' financial capability with research-based personal finance information.
Friday, August 17, 2018
Career Planning Strategies- Part 2
There are many factors to
consider when thinking about a new job including a change in salary and a
change in living costs, if moving to a new geographic location. Below are three career transition recommendations to consider:
Due Diligence- Check Web sites such as www.salary.com and www.jobsmart.org
for information about the earnings potential of various job titles. For
non-profit managerial positions, check the non-profit organization’s 990 form
for the salaries of previous employees.
Retirement Savings- Keep your tax-deferred account balance tax -deferred
with one of three options: former employer’s plan, transfer to a new employer’s
plan (if allowed), or a rollover IRA, which provides the most investment choice
and control. When unsure about how to invest the money, consider placing it
temporarily in a money market fund until you can explore your options.
Relocation- Weigh the pros and cons.
Being willing to relocate can enhance prospects for employment because you are
“casting a wider net.” It is not without its trade-offs, however, including
differences in living costs and family resistance, especially if a “trailing
spouse” has to find a new job or school-age children don’t want to leave
friends and activities. There are also intangible financial costs to consider.
For example, if you are moving away from family members who provide unpaid
support services (e.g., child care), there will be a financial loss when these
services must be purchased in a new location.