Blog Post: Financial Planning and Your Job Move

Finding a new job can be time consuming, especially in today's market. Therefore, make sure you have one less thing to worry about, finances. Experts have different times frames on savings for emergency funds. This time frame can be anywhere from 3 months of savings to 12 months.

In the current economic climate, the longer your emergency funds last, the better. Many people have not planned for an extensive period of unemployment. If this is you, make a change today.

Another concern when making a job move is your 401K or other retirement funds. If you have a 401k or other employer-sponsored plan, be careful in moving it. If you are not spending these funds immediately for an emergency, do not withdraw the funds with a check made out solely to you.  If you need the funds immediately, the cost can be very expensive.  If you are under age 59 1/2, you may have to pay penalties and taxes.  That's not a pleasant feeling to have.

Therefore, ask a financial planner or tax advisor before taking funds from a retirement plan. Rolling these funds into an IRA may be a way to avoid suffering an immediate tax penalty. If you received a 401K check made out in your name, and it has been less than 60 days, you may have time to correct the issue. Call a tax advisor to discuss your options.

Again, try not to make finances a major issue when making a job move. The less stress, the better.

A. L. BEAN & Company

Consulting, Tax & Accounting

www.albeanco.com