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Benefits, Benefits, Benefits!

Benefits, Benefits, Benefits!

March 14, 2021
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What are the financial considerations you need to make when you are interviewing for a new job? Besides the obvious point of pay, one of the most important considerations are: benefits, benefits & benefits! You want to consider your pay structure, but you might be comfortable taking a pay cut if it is going to benefit you in another way. Of course, your income must be high enough to meet your expenses, but you want to understand whether you are taking a big downgrade in your benefits that could end up costing you thousands of dollars in equivalent income.

One thing to consider and ask about is your retirement plan match. How much is your match? I have clients who don’t have a match all the way up to 10%. There's a large range here, and oftentimes there are qualifications that you need to meet. Sometimes there is a waiting period to receive 100% of your match when you leave your employer, the most common being 5 years. So that's something to think about. 

The next consideration are stock options and restricted stock units (RSU’s) for larger corporations. Here are some questions to ask: What is the split between stock options and RSU’s? What are the terms of these options or units? What is the vesting schedule? Does receiving them depend on your position within the company? 

Next let’s explore insurance benefits: health insurance, life insurance, disability insurance -- to name a few. Even if it's a smaller company, what is available to you? Would they consider adding an insurance benefit if it’s not being offered currently if it’s important to you? For example, I have a client that doesn’t have employer-provided disability insurance, and that's something she's been advocating for. Had she known before taking the job, she may have asked for the disability insurance to be added to the benefits package prior to coming onboard. 

Another question to ask is what are miscellaneous benefits? Sometimes employers offer adoption assistance, tuition assistance, and legal benefits.

These are a few financial topics to explore when interviewing: retirement plans, stock options and insurance benefits. Ask detailed questions. You want to make sure you know what benefits are available to you and whether there is a vesting or waiting period. 

Let me know if you have specific questions about your situation. I'm here to create your customized plan. 

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