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Time for a changeJune 11, 2016 Life Events
There are four financial factors you should consider that will affect a career change.
When the Greek philosopher Heraclitus said back in 500 B.C. that no man ever steps in the same river twice, he was observing that change is a constant. This notion may apply to every facet of life, and your career of choice is no exception. Yearning for a professional shift can result from several factors: boredom, lack of growth within a company or industry, imagining a dream job, the need to make more money, the desire to be your own boss or even wanting a lifestyle change.
If you’re thinking about changing careers or starting a new venture, it pays to take a close look at the financial side of things both before and after you get a job offer.
- What are the ramifications if you leave?
You’ll need to consider everything from the value of your benefits to contract stipulations. For example, if you’re close to being vested for stock options, RRSP matches and deferred compensation, you may want to wait. You don’t want to leave money on the table if you don’t have to. Or if you’re contractually tied to the company for a specified period of time, consider the consequences of breaking the contract.
- How will a new career affect your financial goals?
You may need to reassess your short- and long-term goals and how they might change if you accept a different job. Talk over potential ramifications with your family and work with us to update your financial plan accordingly.
- Have you compared the total compensation package?
Compare both the salaries and benefits (including your out-of-pocket costs), as well as the intangibles that come along with the new job. If you’re taking a pay cut, but believe you’ll have greater job satisfaction, consider that, too.
Tip: Before you accept any offers, negotiate salary and benefits. Use online tools to assess what you should be making in your market and adjust for any cost-of-living changes. Some companies allow you to negotiate stock options and vacations, as well.
- Have you done your research on the new company?
Before you think about sealing the deal, consider the new company’s culture, stability, future outlook and opportunities for growth. Decide if you’re a good fit for the company and, more importantly, if it’s a good fit for you.