Estate PlanninG

Four Things to Consider When You Get a New Job

So you’ve started a new job. Congratulations!

A new job or even a promotion may come with changes to your finances and estate plan. We’re here to help you figure out what you need to do to make sure your wealth is protected.

Set up or review your budget.

Financial success isn’t possible without knowing where your funds are going. Whether this is your first job or your 20th, taking the time to plan for existing expenses or setting aside money for future needs such as retirement is important.

If you’re changing jobs, the changes in your income will impact the way you live. A financial professional can be a great resource to advise you on how to maximize your funds or make the most of what you have.

Make sure you’re covered.

A new home or car means new insurance policies. Make sure you budget for both the big-ticket item itself along with the insurance for it.

Additionally, if you have loved ones who will need to be cared for in the event of your passing, you may want to consider purchasing life insurance. If you’re making more money, you may want to adjust any current life insurance coverage or supplement your employer-provided life insurance to fully protect your loved ones. Disability insurance may be something else to consider.

Sound like a lot to think about? A licensed insurance agent can review your insurance needs with you and create a strategy that will cover all your bases.

Incoming: Income Taxes

The not-so-fun part about starting a new job is developing an income tax strategy. If you’ve been recently hired for your first job, you may be seeing several things withheld from your taxes: federal and state taxes, Medicare, etc. At the end of the year, you’ll be required to file your federal and state income tax returns. If this feels daunting, don’t worry - an experienced tax advisor can walk you through the process.

If you’re changing jobs, you may find yourself in a different tax bracket. If this is the case, you may have tax credits or deductions that you’re now eligible for.

Create basic estate planning documents.

We can’t emphasize it enough: creating an estate plan is the best way to protect you and your loved ones during your lifetime, through periods of incapacity, and when you die.

A new job affects your stream of income, and you may have acquired new benefits such as life insurance, disability insurance, health insurance, or a retirement plan. This makes now a perfect time to craft (or review) your estate plan. You don’t need to be wealthy to have an estate plan, either.

We’re here to help you make the most of your new job and protect the legacy you’re creating. Call Santaella Legal Group, serving San Ramon, Danville, Dublin, Pleasanton & the Tri-Valley area at (925) 831-4840.