There are many factors to consider when thinking about a new job including a change in salary and a change in living costs, if moving to a new geographic location. Below are three career transition recommendations to consider:
¨ Do Salary Due Diligence– Check Web sites such as www.salary.com and www.jobsmart.orgfor information about the earnings potential of various job titles. For non-profit managerial positions, check the non-profit organization’s 990 form at www.guidestar.comfor the salaries of previous employees.
¨ Roll Over Retirement Savings– Keep your tax-deferred account balance tax -deferred with one of three options: former employer’s plan, transfer to a new employer’s plan (if allowed), or a rollover IRA, which provides the most investment choice and control. When unsure about how to invest the money, consider placing it temporarily in a money market fund until you can explore your options.
¨ Consider Relocation- Weigh the pros and cons. Being willing to relocate can enhance prospects for employment because you are “casting a wider net.” It is not without its trade-offs, however, including differences in living costs and family resistance, especially if a “trailing spouse” has to find a new job or school-age children don’t want to leave friends and activities. There are also intangible financial costs to consider. For example, if you are moving away from family members who provide unpaid support services (e.g., child care), there will be a financial loss when these services must be purchased in a new location.