Updated 12/1/2023

When a client starts a new job, this shift can come with a number of changes that might impact their financial situation, both in positive and negative ways. In this checklist, we focus on reviewing the potential financial impact of a job change on your clients, including:

Cash Flow and Income

• Will the client’s income and expenses change due to their new job?
• Any adjustments should be reflected in a new income and spending plan.

Employee Benefits

• Your client should review the benefits offered by their new employer, especially health insurance, to gauge the impact on their financial situation.
• If they still have FSA dollars left with their former employer, be sure they use this money so as not to lose it.

Retirement Plans and Deferred Compensation

• If your client participated in a retirement plan with their former employer, they will need to decide what to do with their account (e.g., leave it, roll over to IRA, roll into new employer plan). Additionally, they will want to be sure to deal with any stock options and deferred compensation they may have with their former employer.
• The client should review the retirement plan options offered by their new employer, and be sure to contribute as soon as they are eligible and implement an investment strategy that aligns with their overall portfolio.

Other Planning Issues

• Will the client’s new compensation move them into a different tax bracket? Be sure they adjust their withholding accordingly, and look at any tax planning opportunities.
• Will the client be subject to any type of non-compete or other restrictions as part of their new job?

This is a comprehensive checklist of the types of issues that advisors should be discussing with their clients who are starting a new job. This change can have a great financial impact, and your planning can help the client to make the most of this life transition.