Navigating career transitions - Thrivent
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Navigating
career transitions
Changing jobs can be both exciting and scary.
Whether you’re intentionally embarking on a new
career or are faced with an unexpected job move,
here’s how you can financially prepare yourself.
By Elizabeth Judd / Illustration by David Saracino
T
he average American will a job, you’ve got to create a plan,” Many financial professionals advise
experience 10 or more job says Markwell. One aspect of a job tracking expenses throughout the
changes over the span of change that is often overlooked, he course of an entire year. You also can
a 40-year career. That’s continues, is finances. look at each month individually. Break
based on Bureau of Labor statistics Understanding your money your expenses into two categories:
that found in 2020 that the median situation is a key consideration to recurring and one-time occurrences.
employee tenure for men today is 4.3 carrying you and your family through Remember on the recurring side to
years and for women, 3.9 years.1 a job search and helping you make include those necessary and predict-
A new job can be the first in a chain good financial decisions, whatever able expenses, such as property
of other changes, ranging from a your new employment situation taxes and insurance payments, that
new daily routine to a very different might be. do not hit in the particular month
financial situation. Here’s an action plan to help you you’re tracking. From there, creating
Brad Markwell, a Thrivent get your financial ducks in a row. a budget is easier to do.
financial associate in Golden Valley, For Colleen Foley, who had spent
Minnesota, points out that being Plan out your finances the past eight years working at a
prepared “is one key to financially It’s important to understand your health club, a change in employment
managing any job transition, whether financial parameters when consider- came in 2019. “I had no notice,”
it is an unexpected layoff or intention- ing looking for a new job. “I believe says Foley, who lives in Bloomington,
ally beginning a new opportunity.” the number one step for getting Minnesota. “I was called into HR and
For many, a job transition is a financially organized is figuring out told they’re downsizing and reorga-
time of renewed possibilities, and what your budget is,” says Markwell. nizing. There I am, 63, with no plans
taking the right financial steps can “It sounds easy and like a no-brainer, to retire for the foreseeable future.”
ease any stress experienced along but there are so many people who As part of the process of filing for
the way. “When you’re looking for don’t do that.” unemployment, Foley found Thrivent
24 | Thrivent Magazine | Summer 2021 thrivent.com | 25
and realized that the first step she to a payout for unused vacation or
needed to take was putting her sick time? And what are the rules
finances in order. around flexible spending accounts? Exit plan checklist
Some accounts have a “use-it or
Think needs, wants and wishes lose-it clause,” which means that Time your exit carefully. If you are leaving voluntarily, you might want
Once you know where your money is money remaining in the account to give notice after you’ve received your annual bonus. In addition, says
going and you’ve created a budget, won’t be refunded. Thrivent Financial Consultant Brendan Rorem, an employee with stock
it makes sense to dig a little deeper. For those leaving a job involun- options should investigate when these options vest and plan accord-
Brendan Rorem, a Thrivent financial tarily, questions include: Will you ingly, as well as determine if it is possible or advantageous to realize
consultant in Bellevue, Washington, receive severance pay? How long income in the current year or perhaps defer it to another.
advises sorting all expenses into will your benefits last? And are you
“needs, wants and wishes.” eligible for unemployment insurance? See whether your job search expenses are tax deductible. Money
“You want to know that if you had spent traveling to job interviews and hiring a career coach may be tax
to, you could live on X [the amount of Weigh health insurance options deductible, says Rorem.
money you truly need],” says Rorem. Markwell points out that one of the
“Once you have that number, you can biggest bills for most Americans is a Read the fine print on your life insurance contracts. Permanent life
add back wants and wishes as your mortgage or rent payment, followed insurance contracts can be a good source of income, says Thrivent
budget allows. This is also a good by health insurance expenses. Financial Associate Brad Markwell, noting that sometimes money can
way to approach income that may be matters, too. “People often go to someone to meet for coffee might be While many people who leave be taken out of these contracts “in a tax-favorable way.” Check in with
desired in retirement.” the simple things first, like, ‘I can an inexpensive way to network. their jobs can pay to extend their your financial professional to make sure all options are evaluated and
When trimming fat, Rorem identi- make my own coffee and stop going employer’s health benefits under wise choices are made on overall coverage.3
fies dining out and clothing as to Starbucks,’” Rorem says. While Understand your current COBRA, this is not always the most
good places to start. Next, he says, this type of economizing may seem employer’s offerings cost-efficient option. For those with Gather documents before you leave your current job. Remember to
examine recurring expenses, such sensible, it might not have enough For planning purposes, it’s important a clean bill of health, purchasing print out pay stubs or retirement plan documents before your last day
as gym memberships and streaming impact. “Going to Starbucks is maybe to understand “what your company is private-pay insurance may cost less, at work. These documents may be password protected and difficult
services, because fees automatically a $3-a-day decision, but if you’re providing that you don’t necessarily says Markwell. to access later. Also be sure to write down contact information for the
deducted from your bank account going to dinner each night with your see in your paycheck,” says Rorem. He also notes that some states various plan administrators, especially medical and retirement plans.
are easier to overlook. family, that might be a $100-a-day Employers are often providers of have their own health insurance And if you move, make sure to update your address with those plan
Having a sense of proportion decision,” he says. Plus, inviting income and benefits. It’s critical to marketplaces that can offer attractive administrators and previous employer so that you receive updates and
consider that full package—income, deals for residents. tax information in a timely manner.
retirement, time off, health insurance
and life insurance. Financial profes- Revisit retirement funds
sionals can help take stock of that When changing jobs, you might
Tips for practicing self-care bigger picture and help you evaluate choose to roll your 401(k) to your
where an employer package is strong own IRA to be able to manage your or more, if needed, you can move around the time Colleen was laid off.
Job searching can be stressful. Practice gratitude. Even during and where it may need to be supple- own investments or convert a pre-tax your cost basis (a fancy term for the Helping her stepmother influenced
Here are some ways to care for difficult times, there are always mented. That’s especially important 401(k) fund to a Roth IRA, suggests contributions you’ve made) into your her future goals.
yourself as you look for your things you can be grateful for. if you change from one income and Markwell. Pre-tax funds converted savings account without paying a In Foley’s case, Thrivent Financial
next opportunity. Writing them down each day will benefits package to a new one. into a Roth IRA will be taxable at the penalty. In contrast, he says, if you’re Associate Ted Vickerman guided her
help you stay positive. When a job change is voluntary, point of conversion, so you’ll want to not yet 59½, taking money out of as she made some major financial
Create a good support network. planning ahead is important. Stay work with your financial professional your 401(k) or individual retirement decisions. With help from Thrivent,
Others who have been in a similar Find ways to help others. Seek on top of routine doctor and dentist and tax professional for the best account might mean a 10% penalty she first used severance and
situation are often willing to help. out volunteer opportunities, give appointments. If, for instance, you guidance on the right move for your and a tax bill.2 unemployment pay. She also sold an
blood or organize a Thrivent need new glasses and you have a situation. While Thrivent does not annuity from another company. She is
Take care of your physical and Action Team. vision plan, visit an optician while provide specific legal or tax advice, Stay connected now drawing money from her assets
mental health. Get plenty of sleep expenses are still reimbursed. your financial professional can For Foley, looking for work was only so Social Security will go untouched
and exercise. Find quiet moments Maintain a schedule and organize To understand offerings from partner with you and your tax profes- one part of a much larger picture, until she is over age 66.
to pray and meditate. your search. Dedicate time each your current employer, start with sional or attorney. one that involved taking care of her Foley’s experience illustrates that
day to your search and to yourself. the employee handbook and your Markwell also points out that if stepmother, Clare Foley, whose job changes, whether voluntary or
HR department. Are you entitled you’ve had a Roth IRA for five years dementia progressed dramatically involuntary, don’t occur in a vacuum.
26 | Thrivent Magazine | Summer 2021 thrivent.com | 27
What’s happening at Thrivent
At this stressful-yet-exciting time,
it’s particularly important to stay
connected to family, friends and
acquaintances, and to take into
consideration their circumstances,
too, says Markwell.
He points out that today many jobs
are found through networking and
so socializing can be a form of job
hunting. Equally important, though, is
the fact that seeing people who are
important to you can motivate you
and remind you of your purpose.
Don’t forget about caring for
yourself during the process. Job
searching can lead to financial strain,
rejection and discouragement. Find
ways to practice self-care as your
search for your next opportunity.
Incorporate feel-good activities into
your week, create a daily schedule
1
that works for you and take mindful the additional income to work. www.bls.gov/news.release/tenure.nr0.htm
breaks. See more ideas on page 26. As many people learn, the 2
There may be benefits to leaving your
job-hunting journey often turns out
account in your employer plan, if allowed.
Focus on the big picture differently than expected. You will continue to benefit from tax
Changing jobs does not necessarily Job changes are many things, deferral, there may be investment options
mean living on less money. For among them launching pads for unique to your plan, fees and expenses
may be lower, plan assets have unlimited
many, a job change is an opportunity
to find a more satisfying position
growth. Rorem credits a job change
18 years ago with having helped him
protection from creditors under Federal
law, there is a possibility for loans, and
Celebrating 10 years as one of
with a higher salary or greater
economic potential.
find his calling as a financial profes-
sional at Thrivent. “If I hadn’t had the
distributions are penalty free if you
terminate service at age 55+. Consult
the World’s Most Ethical Companies
For individuals who find themselves disruption,” he concludes, “I probably your tax professional prior to requesting a
in a better situation money-wise, would never have thought about this rollover from your employer plan.
creating a financial strategy may opportunity, and I love my job.” n 3 Thrivent is once again being President and CEO Terry Rasmussen continue to set for our organization.
You can access the cash value of
be critical. That’s because individ- a permanent life insurance contract honored for its strong ethical culture says earning this recognition for the last Every day, they practice our values,
uals who suddenly have bigger Elizabeth Judd is a freelance writer during your life to pay for major and leading with integrity. The 10 years is a milestone that deserves to demonstrate care for our clients, and
paychecks may not know how to put in Maryland. expenses, as long as you understand organization was named one of the be celebrated. bring Thrivent’s purpose and promise
the consequences of doing so. For World’s Most Ethical Companies “We’re honored to once again to life so we can help people make
example, removing money from your
in 2021 by Ethisphere, a global be named one of the World’s Most the most of all they’ve been given.”
contract can result in potential charges
and income changes that affect your leader in defining and advancing Ethical Companies,” says Terry For more information on the 2021
taxes. If you have a modified endowment the standards of ethical business Rasmussen, president and CEO of World’s Most Ethical Companies,
How Thrivent can help contract, your actions may not be tax- practices. Thrivent. “The fact that we’ve earned visit ethisphere.com.
free. Withdrawing money decreases Thrivent is one of 135 honorees this this recognition for the last decade
the contract’s cash value and the value
Whether you’re thinking about a career transition or you’ve faced an year, and one of only six honorees in makes it extra special for us. It speaks
of your death benefit. And can result in
unexpected layoff, your Thrivent financial professional has a variety of tools a closed account if you withdraw too the financial services category. to our longstanding commitment to
to help guide you through the process, helping you achieve financial clarity. much. If you remove money, it will take This recognition honors companies maintaining a strong ethical culture,
“World's Most Ethical Companies" and
To find the name of your financial professional, see the back page of this you longer to meet your contract goals. that understand the importance of acting with integrity, and doing what’s "Ethisphere" names and marks are
magazine. Or you can visit thrivent.com and click “Connect with us.” Always talk with your tax advisor and business ethics and demonstrate an right. I couldn’t be prouder of our registered trademarks of Ethisphere LLC.
financial professional to learn about those
overall commitment to integrity. workforce and the high standard they For details, visit Ethisphere.com.
implications up front.
28 | Thrivent Magazine | Summer 2021 Thrivent.com | 29You can also read
