It's that time of year again. The leaves are changing, pumpkin spice is everywhere, football is back, and before we know it, we'll be talking about the holidays and the start of another new year.
Fall is one of my favorite times of year. It's also a reminder of just how quickly things change.
And it's not just the seasons that are changing.
There's a lot happening in the world. Economic uncertainty, rising living expenses, changes in interest rates, and an ever-changing job market are all things that can affect our financial lives.
But sometimes, the biggest changes aren't happening in Washington, on Wall Street, or in the economy. They're happening right in our own homes.
Maybe you're considering a new job. Maybe you've already accepted one. Perhaps you're thinking about retirement, your children are getting older, or your financial priorities have shifted.
The question I like to ask this time of year is simple: When was the last time you took a good look at your financial plan?
Changing Seasons, Changing Jobs
As we approach the end of the year, I often find myself talking with people who are considering career changes.
Some are looking for better opportunities, higher salaries, or more flexibility. Others are approaching retirement or simply looking for something different as they enter a new chapter in life.
And let's face it, sometimes a new job sounds appealing simply because you're tired of your current one!
Whatever the reason, changing jobs can be exciting. But it can also create financial decisions that are easy to overlook.
A higher salary doesn't always mean a better overall financial situation.
Before accepting a new position, there are several things worth reviewing.
1. Look Beyond the Paycheck
One of the first things people compare when considering a new job is salary.
And while salary is important, it shouldn't be the only factor.
I encourage people to look at the entire compensation package, including:
Health insurance premiums, deductibles, and coverage
Retirement plans and employer matching contributions
Bonuses, commissions, and stock compensation
Paid time off and vacation benefits
Life and disability insurance
Commuting expenses and work flexibility
A job that pays $10,000 more annually may not actually put $10,000 more in your pocket.
For example, if the new employer has significantly higher health insurance costs or a less generous retirement match, that salary increase may not be as meaningful as it first appears.
Sometimes a better benefits package can be worth more than a bigger paycheck.
2. What Happens to Your Old 401(k)?
This is one of the most common questions I get when someone changes jobs.
You've spent years contributing to your employer's retirement plan. Now you're leaving. What happens to that money?
In many cases, you have several options:
Leave your retirement savings in your former employer's plan, if permitted.
Roll the money into your new employer's retirement plan, if accepted.
Roll eligible retirement funds into an IRA.
Take a distribution, which may trigger taxes and potential penalties.
Each option has advantages and disadvantages, depending on your circumstances.
Investment options, expenses, creditor protections, access to funds, and tax considerations should all be part of the decision. Certain plans may also have unique features that are worth preserving.
One thing I generally caution against is cashing out a retirement account simply because you're changing jobs.
That money was intended for your future. Taking it out early could create a tax bill and reduce the amount available for retirement.
And remember, you worked hard to save that money. Let's make sure it continues working for you.
3. Don't Forget About Your Benefits
When leaving a job, retirement savings aren't the only things that need attention.
Health insurance coverage may change. Employer-provided life insurance or disability insurance may end. You might also have unused vacation time, a bonus, or stock compensation that needs to be reviewed.
These are all important parts of your financial picture.
For example, if you've relied on employer-provided life insurance for years, changing jobs could leave you with less coverage than you need.
And if you're moving from a company with a pension to one without one, that's a significant change to your long-term retirement outlook.
A little planning before your last day at work can help prevent some unpleasant surprises.
4. A New Job Is a Great Time to Review Your Retirement Plan
A career change can also be an opportunity to make improvements.
Maybe your new employer offers a better retirement match. Maybe your income has increased, giving you the opportunity to save more. Or perhaps you've reached a point in your career where retirement isn't quite as far away as it once seemed.
This is an ideal time to review questions like:
Am I contributing enough to retirement?
Should I consider traditional or Roth retirement contributions?
Does my investment allocation still match my goals?
Am I taking the appropriate amount of investment risk?
Has my expected retirement date changed?
One thing I always emphasize is that your investment accounts shouldn't operate independently of your financial plan.
Your retirement accounts, investments, savings, and future income needs should all work together.
5. Even If You're Not Changing Jobs, Life Is Still Changing
Not everyone is considering a career move, and that's perfectly fine.
But that doesn't mean your financial plan should sit untouched.
Maybe you've welcomed a new child or grandchild. Maybe your children are approaching college. Perhaps you've purchased a home, taken on new expenses, or started thinking more seriously about retirement.
And sometimes, nothing significant has changed personally, but the economy and investment markets have.
Your financial plan should be reviewed periodically to make sure it continues to reflect your circumstances.
I like to remind clients that a financial plan isn't something you create once and put in a drawer. It's something that should evolve as your life evolves.
Just like we prepare our homes for the changing seasons, we should take the time to make sure our finances are prepared for what's ahead.
6. Before the New Year, Take a Financial Inventory
We don't need to wait until January 1st to start thinking about our financial goals.
In fact, fall is a great time to get ahead of things.
Consider reviewing your household spending, emergency savings, retirement contributions, investment allocation, and insurance coverage.
It's also a good time to look at your taxes and see whether there are any year-end planning opportunities.
For some families, this might mean increasing retirement contributions. For others, it might mean adjusting savings goals, reviewing investment gains and losses, or preparing for upcoming expenses.
And for those considering a job change, now is a great time to understand how that transition fits into the bigger financial picture.
Sometimes small adjustments today can make a significant difference over time.
7. Change Isn't Always a Bad Thing
Change can be uncomfortable.
A new job, a new home, retirement, or a different stage of life can bring uncertainty.
But change can also create opportunity.
A career move might allow you to save more. A new financial goal might motivate you to reconsider your spending. And a review of your retirement plan might reveal that you're in a better position than you thought or identify something worth addressing while there's still time.
The key is being proactive rather than reactive.
You can't control everything happening in the economy or the world around us. But you can take steps to control how you prepare for it.
The Bottom Line
As the leaves turn and the pumpkin spice takes over just about everything, take a little time to think about what's changing in your own life.
Are you considering a new job? Have your financial priorities shifted? Is retirement getting closer? Or has it simply been a while since you reviewed your plan?
You don't need a major life event to justify taking a closer look at your finances.
Sometimes the best time to review your financial plan is before something changes, not after.
At Northern Peak Financial, I enjoy helping individuals and families navigate these transitions. Whether you're changing careers, preparing for retirement, or simply making sure you're on track, having a financial plan can help you make those decisions with greater confidence.
And while we can't stop the leaves from falling or the pumpkin spice from showing up everywhere, we can make sure we're prepared for the financial seasons ahead.
A little planning today can make tomorrow a lot brighter.
The information provided is for educational purposes only and is not intended as individualized investment, tax, or legal advice. Retirement plan distribution and rollover options depend on individual circumstances and applicable plan rules. Consult with appropriate professionals before making financial decisions.