Changing your job
There are many things to consider when changing jobs -- personal, professional and financial. As with any major life event, it's important to weigh all the pros and cons when deciding whether a job is right for you. But from a financial perspective, salary is only one of many important considerations. Diane Jackson, a financial center manager with Fifth Third Bank, recommends you also evaluate the following:
How will your new health insurance compare? For many people, health insurance is a top concern when accepting a new position. With most jobs, employees are responsible for paying a portion of the monthly premium. Do you know what that cost will be? Also, with some new jobs, there's a few months' delay before health insurance begins. If that's the case, it's important to be covered in the interim. You may want to ask whether you can you pay the full premium on your own for several months, or whether you can extend coverage from your current employer. It's also important to check whether your new policy will allow you to keep the same doctor and whether it covers prescriptions.
For some people, it's also important to have vision and dental insurance as well as short- and long-term disability insurance. If these benefits are available to you, it's important to know what they'll cost and what, exactly, they'll cover.
How much will your new life insurance premiums cost? Many large companies allow former employees to keep their life insurance policy -- and pay the premiums themselves. Because life insurance policies go up as people age, you may want to consider whether this is an option for you. Even though you are paying the full premiums, they may be more affordable than paying a portion of the premiums on a new policy obtained through your new employer.
Should you postpone a new job until you've become fully vested with your current employer? Vesting refers to the ownership of your employer's contributions into your retirement account. Though your employer may make contributions into your retirement account, your complete ownership of them depends on your employer's vesting schedule in their retirement plan. So before you take a new job, it's helpful to know how long you must work with your current employer to qualify for these contributions -- and, exactly, how much money is at stake. With this information, you can decide whether postponing a new job is in your best interest. "This can be a very personal decision," says Jackson. "While it's important to take advantage of these benefits, it's also important to like your job and enjoy your quality of life."
Will your transportation costs be affected? With some new jobs, you may find yourself paying substantially more for gas or parking. Some people may even need to buy a new car for the extended commute. These costs also must be factored in when evaluating the financial value of a new job.
Will your automatic or online payments be affected? You may want to have your paychecks directly deposited into your checking account -- especially if you have a mortgage and other bills automatically deducted each month. It also may be necessary to review exactly when these deposits and withdrawals occur -- to make sure your account will have sufficient funds when bills come due.
For more financial advice when changing jobs, contact Fifth Third Bank at (866) 475-4201, or visit the Fifth Third website.



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