Changing
Careers? Cover Your Assets
For years we’ve learned
that it’s not unusual for Americans to change
jobs and even careers several times in the
course of a working lifetime.
It’s one of the dramatic changes that’s occurred in the
21st Century job marketplace. And you need to be prepared
for it.
One way, of course, is to have a “failsafe career” that
guarantees you’re ready in advance for any job or career
change that may come your way . . . whether voluntary or
involuntary.
Another aspect of job change you should be aware of is to
protect your assets when you make your move. Be sure you
take your TAX-SHELTERED 401(k) ASSETS with you.
* DO NOT make the fatal mistake of cashing out your
account when you switch jobs.
* DO NOT have your organization write you a check that
you can immediately turn into cash.
Consider the income taxes and fees you’ll pay on the
withdrawal. For example, buying a car for $20,000 would
require you to remove up to $30,000 from your account.
That’s $30,000 that won’t be accruing interest toward your
retirement.
One report states that 50% of job-changers, ages 20 to
29, cashed out instead of rolling over their money to a new
account. Workers were more likely to cash out even if the
had $500 or less in their 401(k).
Bad idea . . . you’re losing money
Take the opportunity to roll your money into an account
with your new employer. Don’t leave it with your old
employer. Also, consider rolling your 401(k) into an IRA.
These accounts have more investment options than an
employer’s 401(k) program.
Whatever your decision regarding your 401(k) options,
remember you have other assets to consider. These are your
personal job and career assets you carry with you at all
times. They are as valuable as your financial assets. In
fact, they’re what make your financial assets possible.
Check out our website to discover how to make your
personal career assets work for you. Develop them properly
and they’ll guarantee your financial assets and your success
in the job marketplace!
|
