If you are considering a new job or switching career paths, here are a few steps that may help to make the transition smoother.
Before you leave your current job
- Most employers prefer that you give a two weeks notice before quitting your current job. Once you have received and accepted an offer for a new job, be sure to notify your current employer next.
Know the benefits available at your new company
- Most employers don't offer health insurance coverage starting on day one, so be prepared for whatever gap in insurance coverage is needed.
401(k) roll over options
- Keep your money with your current employer (usually as long as you have at least $5,000). The benefit for this option would be that you already know the plan.
- Completely rollover your money to your new company. Your human resource department can help you with the rollover and if your new company doesn't offer a retirement plan, many companies let you set up an IRA online.
- Your current employer can send you a check, usually if your balance is below $5,000. You will have 60 days to deposit the full amount into another retirement plan otherwise you will be subject to taxes and penalty.
Sign-up for direct deposit
- Many companies offer direct deposit. If you would like your checks to be automatically deposited into your account(s), sign up for direct deposit. You will need to give your new employer your bank's routing number and your personal account number.
Track your monthly expenses
- Be sure to track your monthly expenses and income before switching jobs to ensure a healthy budget with your new income. Check out Financeworks™ to learn about tracking your expenses.
Check all current accruals
- Meet with your Human Resource Director(s) and discuss any accruals that you are entitled to upon leaving your current employment (back pay, vacation pay, sick pay, future distributions).
Track your monthly expenses to make sure you new job income will meet your expenses.
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There are important considerations to keep in mind as you plan for the exciting possibility of home ownership.
Consider the additional expenses of owning a home
- Home Insurance
- Repairs and Maintenance
- Real Estate Taxes
- Homeowners Fees
- Save and determine what you can personally afford for a down payment and closing costs.
- Know your credit score and make sure that your credit history is healthy.
- Visit www.annualcreditreport.com for a free copy of your credit report.
Contact a Reliance State Bank Mortgage Lender
- Contact one of our experienced Mortgage Lenders to get started.
- Fill out an application form to see how much you are prequalified for so you will be ready to make an offer.
Find a Realtor
- Find a knowledgeable realtor in your area.
- Start house hunting
- Compare prices and locations in your area
- Be realistic in determining the size and cost of the homes you look at
Congratulations on your engagement and upcoming wedding! Getting married is an exciting time as you plan your lives together. Here is some information you may want to consider.
- Update your bank accounts
- Contact a Personal Banker at 515-733-4396 in Story City or 641-923-2801 in Garner to schedule an appointment.
- Decide if you will combine finances
- Merge accounts or open a new joint checking account to pay bills - Online Bill Pay is free.
- Work together to create a realistic budget - Money Management™ is a free online banking tool to track your spending
- Discuss your individual credit scores - request your free annual credit reports at www.annualcreditreport.com, a government-sanctioned website
- Reduce and eliminate excessive debt to help build stronger credit
- Put money aside for an emergency fund - personal savings or money market account
- Start planning and saving for your future - money market account, Certificate of Deposit, IRAs
- Add the convenience of online and mobile banking
Update Personal Information
- Update your personal information that has changed such as name and address
- Driver's License
- Social Security Card (if name change)
- Credit cards
- Utility companies
- Student loans
- update W-2 tax exemptions
Review beneficiary information
- IRAs and HSAs
- Life insurance
- Personal investments
- Employer retirement plans or stock investment accounts
- Review your health care plan and update with spouse information
- Consider buying life insurance
- Review beneficiaries
- Update marital status with car insurance
Create a will
- Establish or update your will
- Review your beneficiaries
Having a Child
Congratulations! Your family is growing. Everyone remembers to plan for changes to your home, but we're not always prepared for changes to our finances. Let us help you make sure that you have everything in place so you are ready when the time comes. Here is a checklist with a few helpful suggestions you might want to consider.
Review your finances
- Review and revise your budget to account for additional child-related costs including medical and dental expenses
- Set aside an emergency fund for those unexpected expenses
- Consider the additional day-to-day expenses such as clothes, diapers, formula, daycare
- Save for future expenses such as clothes and school supplies
Discuss benefits with your employer
- Talk with your human resource department about any benefits that you may be able to sign up for
- Adoption reimbursement
- Flexible spending
- Child care subsidies
- Maternity leave
Update your information
- Take advantage of the government credit for becoming a parent
- Update your W-2 tax exemptions
- Create or update your Will - Learn more
- Inquire about life insurance benefits, costs, beneficiaries
Save for your child's education
Planning for Retirement
When you are ready to retire, will you have saved enough to live comfortably? Everyone dreams of a stress-free, financially secure future. An important key to achieving this goal is to start a savings plan early and commit to it. Here are some helpful tips to consider.
Plan ahead to help secure your future for retirement
- Start saving early
- Consider payroll deductions
- Open an IRA
- Make steady contributions to your retirement plans
- Speak to a financial advisor
- Balance you investment options between risk/reward
Things to consider within a few years of retirement
- Discuss your retirement plans with your spouse and/or financial advisor
- Prepare a retirement budget taking into account realistic inflation
- Compile pension and benefits information from your current and former employers
- Consider consolidating your accumulated retirement assets
- Determine if you may need additional coverage for health care or long-term care
- Take an earnest look at your projected income compared to projected expenses
- Assess the adequacy of your investment portfolio
Things to do with 1 year to retirement
- Review your retirement budget
- Re-evaluate your income along with your retirement distribution plan options
- Choose your retirement date
- Consider downsizing
- Begin necessary paperwork for retirement assets accumulated with your former employer's retirement plan, various IRA accounts, and your current employer's retirement plan
- Make any necessary changes to your asset allocation strategy
- Take action if you will need any additional health care or long-term care insurance
- Contact the Social Security Administration to apply for benefits three months prior to the date you want payments to begin
- Three months prior to your 65th birthday, sign up for Medicare
Understand your income plan and retirement investment
- Understand the guidelines for your withdrawal rate and which accounts to withdraw from first
- Have a strategy in mind for generating income in retirement
- Keep the importance of asset allocation and periodic rebalancing in mind as you transition to retirement
Make changes to your Will and estate
- Turn retirement savings and pensions into income
- Estate planning
- Consider assisted living options
- Optimize taxes
Caring for a Parent
As a parent ages, they may need help with managing their finances. There are a variety of tools available to make the job easier and your parent more comfortable as time goes on.
- Discuss with your parent how they prefer their finances to be handled
- Determine the role each sibling will play in the parent's financial and medical decisions, if any
- Consider long-term care insurance
- Look into naming a power of attorney
- Insurance policies
- Pension and bank account records
Review & Update Beneficiaries
- Update or create a will, trust or living will
- Review beneficiaries on insurance policies, employer-sponsored retirement plans, Individual Retirement Accounts (IRAs) and annuities
Look at Available Monetary Resources
- Government funded benefits
- Social Security
- Set up automatic bill payments and online banking
- Review the names on accounts
- Review who has access to the parent's safe deposit box while living or in the event of death