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4 tips for mastering career changes

Key takeaways

  • Think about what's important to you. Before making a transition, take time to reflect on your values, passions, skills, and career aspirations.
  • Salary is only part of the picture. When evaluating an offer, make sure to assess other factors, like benefits and potential changes in your cost of living and quality of life.
  • Don't leave anything on the table. Before leaving a job, make sure you check what your last day would need to be to make the most of your benefits, bonus, and other compensation.
  • Beware of cashing out any retirement savings. Consider options that can help keep your money growing.

Are you unhappy in your current role? Are you mulling a change?

If so, take a deep breath and give yourself time to consider your motivations and the potential effects of a job change on your life and your money. Here are 4 tips to help you make the move that's right for you.

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1. Reflect on what matters to you.

Ask yourself key questions: Why do I want a change? What are my values? What am I passionate about? What am I good at? If you're currently employed and unhappy, ask what you want to change about your current role. Would a raise, a vacation, or a sabbatical help? Is there a new role in your current company that would excite you?

A career change can take many forms. It might be changing to a different role in your current company, finding a new employer, or maybe even changing fields entirely. Reflecting on your current job and what's important to you may help clarify your next career move.

2. Salary is only part of the picture.

Remember, salary is only part of your total compensation. As you consider a new role, weigh other important benefits. Does your prospective employer offer 401(k) contribution matching, profit-sharing, or stock compensation? How about health and disability insurance or student loan assistance?

Also consider changes in your cost and quality of life. What will your hours and potential stress level be in your new role? Will you need to relocate? How will taxes and other costs be impacted? How much time will you work on-site versus remotely, and what will any commute look like?  Considering all these factors will provide a more complete picture of your decision.

For more tips, read Viewpoints on Fidelity.com: How to evaluate a job offer.

3. Don't leave anything on the table.

Before finalizing your exit plans, check dates for bonus payments, 401(k) match vesting, or stock compensation vesting. It could be beneficial to choose your last day carefully to maximize your compensation. Also, be sure to wrap up any expense reimbursements before your last day and check out your company's policy on unused PTO or vacation days (such as whether you can be paid out for unused days as you exit, or whether they're use-it-or-lose-it).

And make sure to leave on a good note with colleagues. Your network and reputation are invaluable assets.

4. Make the most of your retirement savings.

If you've saved in your employer's retirement plan, you'll have some important options: keep the money with your former employer's plan, move it to your new employer's plan, roll it over into an IRA, or cash it out. Learn more about your 401(k) options.

What to do with an old 401(k)?

Consolidating 401(k) savings in a rollover IRA might make sense for you.

More to explore

Changing jobs

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This information is intended to be educational and is not tailored to the investment needs of any specific investor.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

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