Times can be overwhelming when it comes to starting a job or switching career paths. Here are some steps that you can take to ensure your transition is smooth.
Before you leave your current job
- Most employers prefer that you give a two weeks' notice before quitting. After you have received an offer for a job in writing, be sure to notify your current employer next.
Know benefits available at your new company
- Most employers don't offer health coverage starting on day one, so be prepared for whatever gap coverage needed.
401(k) roll over options
- Keep your money with your current employer (usually as long as you have at least $5,000). The benefit for this option would be that you already know the plan.
- Completely rollover your money to your new company. Your human resource department can help you with the rollover and if your new company doesn't offer a retirement plan, many companies let you set up an IRA online.
- Your current employer sends you a check, usually if your balance is below $5,000. You will have 60 days to deposit the full amount into another retirement otherwise you will be subject to taxes and penalties.
Sign-up for direct deposit
- Many companies offer the benefit of direct deposits. If you would like your checks to be automatically deposited into your account(s) sign up with direct deposit.
Track your monthly expenses
- Be sure to track your monthly expenses and income before switching jobs to ensure a healthy budget with your new income. Check out Financeworks to learn about tracking your expenses.
Check all current accruals
- Meet with your Human Resource Director(s) and discuss all accruals that you are entitled to upon leaving.
- Be sure to track your monthly expenses and income before switching jobs to make sure that you can afford your spending on your new income
- Back Pay
- Vacation Pay
- Sick Pay
- Future distributions
Congratulations on the engagement! Getting married can be such an exciting time, but there is a lot of planning that goes into it and this can make it a little stressful. Here are some things that you may want to consider updating after the big day.
- Update bank accounts
- Contact a Personal Banker at 515-232-5561 to schedule an appointment.
- Combine finances
- Merge accounts to get rid of paying on duplicate bills
- Work together to create a realistic budget
- Discuss credit scores with each other for future purchases
- Reduce and eliminate bad debt to help build a stronger credit
- Put money aside for an emergency fund
- Start planning and saving for the future
- Personal Information
- Driver's License
- Credit card companies
- Insurance companies
- Utility companies
- Student loans
- Alumni association
- Insurance companies
Update your social security card with your new last name. Your number will remain the same.
Update your mailing address if a move occurs
Consider making your spouse beneficiary on all accounts
- Life insurance
- Personal investments
- Work savings or stock plan accounts
- Review health care plan and update with spouse information
- Consider buying life insurance
- Review beneficiaries
- Update W-2 tax exemptions
Create a will
- Establish or update your will to include your spouse
- Review beneficiaries
Having a Child
Things are about to change with the news of a child coming into your life. There are many responsibilities that come with caring for someone else. Let us help you make sure that you have everything in place so that you are ready when the time comes.
Review your finances
- Review and revise your budget to account for child-related costs
- Don't forget-Medical and dental expenses
- Reduce or eliminate debit to increase your credit
- Set aside an emergency fund for those unexpected expenses
- It's never too early to set up a college fund for your children
- Set back money for more expensive purchases in the future such as cloths, school supplies, electronics
Discuss benefits with your employer
- Talk with your human resource department about any benefits that you may be able to sign up for
- Adoption reimbursement
- Flexible spending
- Child care subsidies
- Maternity leave
Update tax information
- Take advantage of the government credit for becoming a parent
- Update your W-2 tax exemptions
Create a will
Inquire about life insurance
Start a savings account
Planning for Retirement
What are your retirement plans and goals? As you near retirement, one of the most important questions is whether you have accumulated enough to financially sustain a comfortable lifestyle throughout retirement. Let our First Point Financial Management team help assure you that you will have a stress free retirement. Here are some tips to consider when you are nearing retirement.
Things to consider 5 years to retirement
- Discuss your retirement plans with your spouse and/or financial advisor
- Prepare a retirement budget taking into account realistic inflation
- Compile pension and benefits information from your current and former employers
- Consider consolidating your accumulated retirement assets
- Determine if you may need additional coverage for health care or long-term care
- Take an earnest look at your projected income compared to projected expenses
- Asses the adequacy of your investment portfolio
- If necessary, increase retirement plan
Things to do with 1 year to retirement
- Review your retirement budget
- Re-evaluate your income along with your retirement distribution plan options
- Choose your retirement date
- Begin necessary paperwork for retirement assets accumulated with your former employer's retirement plan, various IRA accounts, and your current employer's retirement plan
- Make any necessary changes to your asset allocation strategy
- Take action if you will need any additional health care or long term care insurance
- Contact the Social Security Administration to apply for benefits three months prior to the date you want payments to begin
- Three months prior to your 65th birthday, sign up for Medicare
Ways to ensure a secure future for your retirement
- Max out your retirement
- Open an IRA
- Invest in a tax deferred annuity
- Know the tax benefits
- Understand your lifestyle change
Have an understanding of your income plan and retirement investment
- Understand the guidelines for your withdrawal rate and which accounts to withdraw from first
- Have a strategy in mind for generating income in retirement.
- Keep the importance of asset allocation and periodic rebalancing in mind as you transition to retirement
- Understand your annual income you will need to cover your expenses in retirement
Make changes to your Will and estate
- Turn retirement savings and pensions into income
- Estate planning
- Consider options for assisted livings
- Optimizing taxes