It's likely you'll change your career at least once; being proactive and knowing what to do with your 401k BEFORE you leave is paramount.
When you start a job, collect this information from human resources: •pension plan description •stock options, ownership plans •summary of medical benefits •403(b)/401(k) plan descriptions Before you quit your job, know your options: •Write down your goals, financial future wish list, and explain your vision of your future to a financial advisor -- don't have one? Ask a self-made woman for a referral -- that's how she got rich.
•Next, find out what your company will allow you to do with your 403(b)/401(k).
Go back through the papers you collected when you first started your job.
•If you owe a 401k loan, it becomes due and payable upon termination.
Investing your money wisely before you quit may help pay off that loan faster than a savings account at the bank.
•You may be able to leave your 403(b)/401(k) where it is; you need to decide if this is to your financial advantage.
•You may receive cash; if so, invest it wisely -- wealthy women got rich by investing in assets - not closets.
•You may be able to roll it over to your new employer's plan; you need to decide if that is a good option given your financial goals.
•You can roll it over to an IRA -- but be careful not to trigger income taxes or other penalties.
Unlike quitting a job, retirement presents different possibilities like maxing out 403(b)/401(k) contributions before you leave.
Understanding the differences between a cash balance lump sum or an annuity is important.
In short, annuities are fixed sums of money paid to someone each year, typically for the rest of their life and cash balance lump sums are just that -- a one-time payout.
Which is right for you? If you get a lump sum you must consider whether to roll it over to an IRA -- knowing the pros and cons of paying taxes or penalties if you cash out -- will help make this decision easier.
If your current employer requires you to roll over a retirement asset, there are several rules and options.
If you are married, there are survivor benefit options to consider.
Knowing and understanding your living expenses while waiting for retirement benefits to begin is essential.
If your income the following year will be substantially less, you may need to move deductions or income from one year to another.
Make the most of your investments in stocks, bonds, funds, rental real estate, etc.
and understanding how selling them may generate capital gains.
Yes, there's a lot to consider before you quit your job or retire.
Knowing what you're up against, knowing what you need to know is a beginning.
Other Issues you need to consider when you quit a job or retire: If you have stock options, what are the rules before leaving?
Review, update and re-write your resume each year.
This allows you to quickly respond to opportunities as they present themselves.
Create several resumes for a variety of career directions that can be posted in an online database for easy retrieval and sending.
Compile a list of email addresses and phone numbers of people you might want to keep in touch with.
Draft a departure letter at home - not on company property.
You need good references to land another good job.
Get work/cell/home numbers before you leave.
Also, it's helpful for you to give your letter-writer a brief highlight reel of what you want them to say about you -- tailor your highlights to the job descrption of your 'new' job.
Leverage the power of LinkedIn and other social networking sites to connect with professionals in your field.
Update your profiles with recent accomplishments and expand your professional network by seeking out connections.
Advise headhunters of your pending intentions to get the ball rolling; they'll keep your pending departure confidential while seeking out possibilities before you leave.
Just make sure you're not corresponding with headhunters on your present company's clock or hardware! Draft a resignation letter.
Even if you are just issuing an oral resignation, you should think about what you are going to say.
If your boss asks why you are leaving, what will you say? Take the high road.
Be gracious and dignified.
Make the transition seamless for your current employer.
Clean up messes, offer to train your replacement, be available for questions after your departure and thank your current employer for the experience.
Leaving on a positive note will only enhance your future career options.
If you're not sure what a great resignation letter looks like, go online; there are many examples out there.
Start saving money early in your career by investing.
It's best to have 4-6 months of expenses on hand; investing your money now can make you money faster than a traditional savings account.
Again, it's likely you'll change your career at least once in your lifetime; be prepared, know your options, and get smart about money.
When you start a job, collect this information from human resources: •pension plan description •stock options, ownership plans •summary of medical benefits •403(b)/401(k) plan descriptions Before you quit your job, know your options: •Write down your goals, financial future wish list, and explain your vision of your future to a financial advisor -- don't have one? Ask a self-made woman for a referral -- that's how she got rich.
•Next, find out what your company will allow you to do with your 403(b)/401(k).
Go back through the papers you collected when you first started your job.
•If you owe a 401k loan, it becomes due and payable upon termination.
Investing your money wisely before you quit may help pay off that loan faster than a savings account at the bank.
•You may be able to leave your 403(b)/401(k) where it is; you need to decide if this is to your financial advantage.
•You may receive cash; if so, invest it wisely -- wealthy women got rich by investing in assets - not closets.
•You may be able to roll it over to your new employer's plan; you need to decide if that is a good option given your financial goals.
•You can roll it over to an IRA -- but be careful not to trigger income taxes or other penalties.
Unlike quitting a job, retirement presents different possibilities like maxing out 403(b)/401(k) contributions before you leave.
Understanding the differences between a cash balance lump sum or an annuity is important.
In short, annuities are fixed sums of money paid to someone each year, typically for the rest of their life and cash balance lump sums are just that -- a one-time payout.
Which is right for you? If you get a lump sum you must consider whether to roll it over to an IRA -- knowing the pros and cons of paying taxes or penalties if you cash out -- will help make this decision easier.
If your current employer requires you to roll over a retirement asset, there are several rules and options.
If you are married, there are survivor benefit options to consider.
Knowing and understanding your living expenses while waiting for retirement benefits to begin is essential.
If your income the following year will be substantially less, you may need to move deductions or income from one year to another.
Make the most of your investments in stocks, bonds, funds, rental real estate, etc.
and understanding how selling them may generate capital gains.
Yes, there's a lot to consider before you quit your job or retire.
Knowing what you're up against, knowing what you need to know is a beginning.
Other Issues you need to consider when you quit a job or retire: If you have stock options, what are the rules before leaving?
- Once you're jobless, it's harder to get money -- for example, to refinance your home.
If your future has major financial obstacles, it's best to consider them before you quit or retire. - Don't forget to use up any paid leaves or vacation time now - once you quit, they're gone forever.
- Do check the company's internal website for information you may need later that you won't have access to once you are gone.
Print or copy important documents while following company policy.
Review, update and re-write your resume each year.
This allows you to quickly respond to opportunities as they present themselves.
Create several resumes for a variety of career directions that can be posted in an online database for easy retrieval and sending.
Compile a list of email addresses and phone numbers of people you might want to keep in touch with.
Draft a departure letter at home - not on company property.
You need good references to land another good job.
Get work/cell/home numbers before you leave.
Also, it's helpful for you to give your letter-writer a brief highlight reel of what you want them to say about you -- tailor your highlights to the job descrption of your 'new' job.
Leverage the power of LinkedIn and other social networking sites to connect with professionals in your field.
Update your profiles with recent accomplishments and expand your professional network by seeking out connections.
Advise headhunters of your pending intentions to get the ball rolling; they'll keep your pending departure confidential while seeking out possibilities before you leave.
Just make sure you're not corresponding with headhunters on your present company's clock or hardware! Draft a resignation letter.
Even if you are just issuing an oral resignation, you should think about what you are going to say.
If your boss asks why you are leaving, what will you say? Take the high road.
Be gracious and dignified.
Make the transition seamless for your current employer.
Clean up messes, offer to train your replacement, be available for questions after your departure and thank your current employer for the experience.
Leaving on a positive note will only enhance your future career options.
If you're not sure what a great resignation letter looks like, go online; there are many examples out there.
Start saving money early in your career by investing.
It's best to have 4-6 months of expenses on hand; investing your money now can make you money faster than a traditional savings account.
Again, it's likely you'll change your career at least once in your lifetime; be prepared, know your options, and get smart about money.
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