You’ve made it through the brutal interviews. You’ve conquered the awkward negotiating process. Now it’s time to start that new, fabulous job of yours! Here are some helpful tips to help you get the most out of all the hard-earned mulah you’ll be making:
One of the very first things you should do when starting a new job is to find out if your new employer offers a 401(k) plan and ask when you’ll be eligible to participate. The best advice is always to participate as soon as possible. Remember: If you’re not used to seeing that money in your paycheck, you’ll never miss it!
If you have a retirement plan at your previous employer, you have a few options:
- Cash Out (which most financial advisors adamantly advise against because of taxes and penalties)
- Roll your 401(k) funds over into your new employer’s plan (ask if this is allowed and when it can be done)
- Leave the money in your old employer’s plan (typically allowed if you have over $5,000 in the account)
- Roll the money into a rollover IRA (a service that we happily offer here)
401(k) SAVINGS CALCULATOR – A 401(k) can be one of your best tools for creating a secure retirement. Use this calculator to see why this is a retirement savings plan you cannot afford to pass up.
401(k) SPEND IT OR SAVE IT CALCULATOR – There are several ways to manage your 401(k) when you leave an employer. Making the wrong decision can cost you thousands of dollars both in taxes and lost earnings.
Be sure to ask your employer to directly deposit your paycheck right into your Linn Area account. And while you’re making changes, you might as well make saving a little easier for yourself by signing up for Payroll Deduction. This service will take out a specified amount of money from of each paycheck and put it directly into another Linn Area account. Naturally, this can be any savings, checking or loan account you have with us. (Look at you checking things off your “To Do” list! BAM!)
Now go wow that new boss! Good luck!