Changing Jobs? Keep Your Finances in Check with This Checklist
Career moves have been plentiful the past year. If a change could be in the cards for you, you need to be ready with the answers to several questions. Scan our checklist to see how prepared you may be.


Have the challenging past two years inspired you to think differently about your life, your work and your finances? You are not alone:
- 50.3% of U.S. adults age 55+ now consider themselves retired. Before the pandemic, up from 48.1% of those adults before the pandemic.
- More than 24 million U.S. workers quit their jobs between April and September 2021.
- For the 11 million open jobs listed in October 2021, only 7.4 million unemployed people were available to fill them.
Whether you have been thinking about a job change for decades or have been motivated by recent events to make a career move, it is imperative that you manage your transition with careful, calculated financial planning.
To start the process, here are five financial pointers (my five “Bs”) for changing jobs:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Budget
Before you make a career move, you need to be able to answer these questions: How will your career change impact your income, expenses, savings and current investing? How much of your current income are you saving and investing today across taxable (e.g., brokerage), tax-deferred (e.g., traditional IRA) and tax-free (e.g., Roth IRA) accounts? And how is your income projected to change in the immediate term (the first 12 months) and intermediate (12 to 24 months) period of your professional transition?
If a decrease in savings and investing is anticipated, when will you resume saving and investing, and how will you hold yourself accountable to this deadline?
2. Business impact
Will your professional change have tax and/or financial planning implications? Will you move from being an employee of an organization to owning a business? Are you becoming a partner in a firm? Will non-cash equity be part of your compensation?
As you understand the business impact of your career change, chat with your existing financial adviser to ensure you are accounting for the change in your tax and financial plan.
3. Benefits
What perks do you receive today from your current employment, like insurance, deferred compensation and/or equity-based compensation? How will these benefits change with your new opportunity? Are there tax considerations associated with your current benefits that might influence the timing of your professional move?
If benefits you rely on today will not be readily available through your next opportunity, how will you meet the needs that no longer will be covered, such as disability insurance?
4. Buddies
Who are the people — whether they be relatives or friends — that will be affected by your professional decisions? How will a career change impact the time that you have available to spend with these people, as well as the lifestyle you can afford for yourself and them with your total compensation?
As you transition to your new role, will additional time and money be required to facilitate the move, prompting a change in daily life for you and your buddies?
5. Buffer
Typically it’s good to have three to six months of expenses in your emergency savings. If you are moving from a salary-based position to a more commission-based or entrepreneurial role, it may be important to build up a larger cash reserve prior to making the transition.
To complement your emergency savings, what additional sources of cash and liquidity are available to you? Before you make the move, ensure that you have a clear picture of the financial buffers available to you to provide cushion throughout your transition.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Caroline Wetzel CFP®, CDFA®, AWMA®, is a vice president and private wealth adviser at Procyon Private Wealth Partners. She has worked in financial services since 2001 and began specializing in wealth management for affluent multi-generational families in 2015. Caroline earned a B.S. degree in policy analysis and management at Cornell University and an MBA in finance and advanced certification in marketing from the University of Connecticut School of Business.
-
Social Security Will Continue Sending Paper Checks, Reversing Course
The Social Security Administration has backed off from plans to eliminate paper checks. However, it will only send checks in the mail as a matter of last resort.
-
Ask the Editor — Tax Questions on Four New Tax Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on four new tax deductions in the "One Big Beautiful Bill."
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case Study
Susan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your Portfolio
Alternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan
529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative Investments
Alternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.
-
Ready to Retire? Your Five-Year Business Exit Strategy
If you're a business owner looking to sell and retire, it can take years to complete the process. Use this five-year timeline to prepare and stay on track.
-
A Financial Planner's Prescription for the Headache of Multiple Retirement Accounts
Having a bunch of retirement accounts can cause unnecessary complications. Consolidation can make it easier to manage your savings and potentially improve investment outcomes.
-
Overpaying for Financial Advice? A Financial Planner's Guide to Fees
Take five minutes to review how much you're paying for financial advice. If you're overpaying, you could be better off with an adviser who charges a flat fee.