New Career? Here’s What Financial Terms You Need To Know
May 7, 2019 .2 min read
Taking a new step in your career is something that a lot of our readers are facing. It’s an exciting feeling to receive a job offer, but it’s an even better feeling when you officially sign your new hire paperwork.
But when it comes to accepting your new job offer, there are more things to think about other than just how much you’re going to be compensated.
In fact, it would be best if you familiarized yourself with your potential new company and their policies, as their stance may or may not become the deciding factor when it comes to accepting the job.
Here are some of the items we consider crucial:
Rolling Over Your 401K
Once hired, you should receive new hire paperwork, within that paperwork, you’ll find a benefits packet. Read it. This packet should include some information on your new company’s policies and whether or not you can roll over your 401k from your previous company. Some companies do not allow this. You’ll want to be aware of your company’s policy on this as that will affect where you put the money that you have from your previous company.
Your New 401K
Within your benefits packet from your new employer, you should also find information on your new 401K plan. Some companies do not allow you to contribute to your 401K until you have worked there for a certain amount of time; other companies allow you to contribute will not provide a company match after a certain period of time. These are some important things to consider and to inquire with your new employer as you get ready to sign your paperwork.
Your New Health Insurance
Like 401K plans, health insurance coverage changes from company to company. Take a look at what your new workplace offers and make a list of questions that you have. Don’t be afraid to ask all the questions you need to get the information on the details of the coverage that you’ll have through your new company.
Avoiding a Gap in Insurance Coverage
There are other reasons besides a potential monetary penalty for why you should avoid a gap in your insurance coverage. It’s a risk that you or one of your dependents might get sick during that gap and that might not be a risk worth taking. Try to avoid taking this gap if you can and make sure that you’re aware of when you’re eligible to enroll in insurance coverage with your new company.
When accepting your new job, these are some of the items we think you should be aware of as it could become a deciding factor when it comes to accepting the job and can help the transition process run as smooth as possible if and when you do accept.
Ande began her 20+ year career as an adviser and quickly realized that many people weren’t taking into account was how emotions play a huge factor in financial decision making. Leaving behind her practice to focus solely on educating both advisers and consumers alike, she became an expert in behavioral finance. Author, speaker, thought leader, and money educator, Ande is helping women to take control of their money.