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Changing Jobs in Your Earning Years

By Saghir Aslam
Rawalpindi, Pakistan

(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)

When it comes to changing jobs, there's always a lot to consider. And for some, there's plenty of advice to help with that transition. Millennials, relatively new to the workforce, easily find tips on how to climb the ladder or how to find a fulfilling or meaningful career. Those approaching retirement age can also find lots of available advice on what to do in the case of a late-career job loss or how to plan for a second career in retirement.

But what about workers in the age group between those two? Some want a better salary, some are bored and want a challenge, some have hit a ceiling with no hope of upward movement, and others simply want to follow their bliss. This group may face the most daunting scenario. Making a change during your prime employment years is not to be taken lightly. Such a switch may alter the trajectory of your career, your financial security, and even your life

High Net Worth Planning with Wells Fargo Advisors has seen the merits and pitfalls of a mid-career job change. The planning also offers advice on four critical issues.

Insurance:

For starters "it's very important to make sure your medical insurance is not interrupted. If you are leaving a job, be sure to quickly make arrangements for new coverage." While COBRA - temporary, transitional health coverage - will likely be available, it's bound to be far more expensive than what you have been paying. "You may also lose other benefits such as disability, life insurance, and vision coverage. While it might be OK to risk a gap in these other benefits, not having medical coverage is one risk far too great to take.

Retirement savings:

 In your middle years and beyond, retirement savings are crucial to your future well-being. Leaving a job in the middle of your career could set you back if you're not careful.

"If you aren't fully vested when you leave an employer, you may forfeit a portion or even the entire amount the employer has contributed". And if you're considering leaving your current job because you're being wooed by another firm, that you compare the contribution amounts of both companies when weighing salaries and benefits.

(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds, or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)