Becoming Adaptable: Job Changes and Group Benefits

Becoming Adaptable: Job Changes and Group Benefits

Apr 26, 2019 9:00:00 AM

It's so hard to make a move towards a new job! Of course we're always looking for a higher salary but there are so many other factors to consider when looking to make job and life changes. Here are a few of the things we see our clients deal with.

Photo of a map with a thumbtack marking a new career location1. Group Insurance Benefits.

Does the employer have any benefits? If you're getting contracted as a 1099 like you would with Uber, Lyft, or some sales jobs, you may or may not get insurance! That includes health insurance, life insurance, and disability insurance.

If your new employer  doesn't offer health insurance you have to really think about if it will be worth it to procure coverage outside of a current situation. If you're making $5,000 more per year but lose health insurance, it may not be worth the change!

Also, consider pre-existing conditions. If you have group life insurance right now and have some sort of disease or health issue that would make you ineligible for your own coverage, don't change jobs.

That’s it. I answered it for you lol! But really though, would it be worth it to double your income but lose your life insurance? That’s an individual and family decision based on your values.

I'm just here to give you some info.

2. Cost of living

What is the cost of living in the town you'd be moving to? Sure, they have great schools, and roads, and local businesses. Those all come at a cost. Whether it's taxes or even just the cost of living with purchasing goods and services, you want to be ready.

Consider things like: What would my new rent be? What about public transportation? Food? Parking? Entertainment?

If you're going from Nebraska to New York, you better be ready to sleep in a closet and share laundry for $3000 per month. Seriously!

$3000 per month in some states could get you a very nice home. Would the cost of living be worth it to make the move? NY is sexy, and you'd have a ton of fun, but the hours and stress may not add up in your favor. I'm not judging your desire to live in the big apple, just saying…

Lit up buildings in a metropolitan area3. Group retirement benefits.

Does the employer offer or match any retirement benefits? This is a big deal! Think about this from two perspectives.

First, if you have an employer sponsored plan you can contribute up to $18,000 per year to your retirement plans in addition to the $6,000 in a ROTH or Traditional IRA. Even if your employer doesn’t match, just having the account allows you to save 3X as much into your retirement!

Second, if your employer does match, then you have to take advantage of it. Imagine you are offered the same salary at two prospective companies. Company A has no match, and company B matches up to 5% of your salary contributions to a 401(k). If you choose company B and save the 5%, you will immediately get 100% return on your investments.

I'm not saying you will have perfect stock selection, I'm saying that for every $1 you save, your company will put in $1 up to 5% of your salary! With no risk…

No financial advisor or hedge fund manager could do that! Warren Buffet himself could not guarantee that if you put in $5,000 he would grow your money to $10,000 just because you put your money in there. Then you hope the market performs well, and long term you have a great asset!

4. Proximity to home.

The average US commute time to work is about 26 minutes each way.

If you have to choose between a few great offers, and a place to live, your commute should be something to seriously consider!

Research has shown that a shorter commute time can reduce stress. Isn't that the goal for most of us? Get a good job and reduce stress!? If you choose to work at an amazing job and take public transportation in Idaho you might actually spend a few hours per day just getting to and from work.

Here's the thing though, what feels right to you? Would 2 hours per day reading on the bus contribute to your happiness? Then do it! How about listening to Audio Books during rush hour each way? Do it if it allows you and your family to love the life you've chosen.

Image of a light rail platform and a train flashing by

However, if you're miserable each day getting to and from work, there's no way it will feel like it's worth it. Oftentimes people will make quick decisions to get to what they think is a better life, but they find that the hustle and bustle is just too much.

When you're making major job and housing decisions moving forward, take some time to think about all of these things!

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