Changing Jobs? Take This Opportunity to Review Your Retirement Plan

Career changes are busy times with many things to consider. With so much changing in your life, thinking about your retirement plan may not take top priority. But as you switch jobs there are several things to consider to ensure you are still saving for your retirement. It’s the perfect time to re-evaluate your retirement plan and look at possibly adjusting the way you save.

If you’re in the middle of switching jobs, take some time to ask yourself these questions:
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What should you do with your plan?

There are three basic routes you can take with your retirement plan when switching jobs. The first option is to leave the account with your previous employer. Another option is to take it with you and roll it into your current employer’s plan. The last option you have is to roll your old plan into an IRA.

Each option has its advantages and disadvantages. You may be comfortable with your old plan’s investment options and service processes. Then again, it may be simpler and more convenient for you to have all your retirement funds in one account. If you roll your old plan into an IRA, you may have access to a wider range of investment choices, giving you an opportunity to select an allocation that is more in line with your risk tolerance.

Are you contributing enough?

Starting a new job could mean a higher income. If this is the case, you may want to consider increasing your contribution rate. Even a small increase in your contribution rate can make a sizable difference over a long period of time. And, if you decide to put more toward your new retirement plan, chances are you won’t miss the extra money, since you won’t be accustomed to your new income.
Regardless of whether you choose to contribute more, at the very least, you should meet your employer match. If you don’t, you’re leaving free money on the table.

Should you speak with a financial professional?

Job changes are also a good time to talk to a financial professional. A professional can help you project your retirement needs and estimate your retirement income. You can also reassess your current savings plan and allocation, and an adviser can help you determine if you are on the right track to meet your retirement goals.

Ready to learn more about retirement planning? Contact us at Carstens Financial Group. We can help you evaluate your objectives and needs, and then develop a strategy. Let’s connect soon and start the conversation.

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

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