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When to Turn to an Advisor: When You Get a New Job

| April 05, 2017
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In this series, “When to Turn to an Advisor,” I’m talking about how quickly things can change in life and when an advisor can help you navigate those phases. In the first post, I discussed how people can benefit from the help of an advisor when they experience the loss of a loved one. And in the second piece, I addressed the important role an advisor can play when you’re experiencing a divorce.

This time, I wanted to talk about how an advisor can help when you or your spouse gets a new job or makes a big career move. I was inspired to talk about this after receiving an email from someone who had stumbled upon my website. They shared that they were a newly married couple who were embarking on their first careers. As they begin earning an income, they wanted to find an advisor who could help them ensure they are setting themselves up for success, addressing how to file their taxes, invest their money, make 401(k) contributions, reduce their student loan debt, and more common financial situations. Along with speaking with them individually, I thought I’d share with anyone else who is either starting or changing their career.

The Impact of Your Career on Your Finances

On average, people hold an average of 11.7 jobs from ages 18 to 48. That’s a lot of change. As you switch jobs, you’ll likely start new retirement plans, earn more, and navigate a changing income tax bracket and evolving budget. Juggling all of these elements can be difficult when you’re faced with a myriad of other day-to-day tasks. It’s easy to neglect your long-term financial needs and planning when you’re so focused on your immediate tasks, from grocery shopping to laundry.

Consider a young person just entering the corporate world. Suddenly, they’re faced with dozens of new decisions they’ve never previously had to make. How will they pay off student debt? How much should they contribute to their company 401(k)? How should they invest their bonus?

It’s not just young Millennials facing such decisions. A seasoned executive will have to evaluate their financial plan and needs when they change jobs. Should they roll over their old 401(k) into a Roth IRA? How will their increased salary impact their tax situation? Do they need to adjust their asset allocation in their 401(k)?

When feeling overwhelmed, people often rush making a decision. If someone isn’t sure which mix of investments to use within their retirement plan and they don’t have a knowledgeable resource to whom they can turn, they may guess or choose an option that isn’t most appropriate for them.

Talking Through Your Decisions

Launching a career or changing jobs is one of life’s big “pivot points” — an event or moment in someone’s life where they have an opportunity to make an impact that could last a lifetime. In this case, it may be a young couple launching their career and wondering how to set themselves up for success with healthy financial habits. Decisions like these require thoughtfulness and time to make sure they can work out in the most appropriate manner.

Working with an unbiased partner can help guide you through the numerous complex and overwhelming decisions you face. Once an advisor understands your financial situation and short and long-term goals, he or she can work with you to develop a strategy designed to help you throughout your career. This may include adhering to a budget, creating a payoff plan for student loans, and deciding on an appropriate contribution amount to your 401(k).

And beyond receiving financial advice, a financial advisor can serve as a sounding board when you face a new decision. If you receive a big annual bonus, can you use it toward a vacation you’ve long dreamed of taking, or does it make more sense to pay off your car loan? If you have an opportunity to achieve your dream job but it involves a pay cut, how should you adjust your budget?

Changing or embarking on a new career can seem overwhelming, but you don’t have to make all the decisions alone. If you or someone you know is facing big life changes, I’m here to help, whether it’s to provide financial advice or simply listen and review your opportunities. When you are ready to chat, you contact me at (626) 529-8347 or email me directly at ricky@hbawealth.com.

About Ricky

Ricky Biel, CRPC® is a wealth manager with Haydel, Biel & Associates, an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at ricky@hbawealth.com.

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