Congratulations on your new job!
Getting a job begins a major chapter in your life. As you navigate this new territory, we are here to help ensure a prosperous transition. To protect the future you are creating, you need proper financial and estate planning.
As you move through this new phase of your life, there are several things you should review to set yourself up for success.
- A comprehensive budget. If this is your first job, you should review your income, expenses, and savings as a first step on the path to financial success. It is easy to see that first paycheck and imagine all of the things you can buy without taking the time to plan for existing expenses or setting aside money for future needs such as retirement. If you have landed a new job, changes in your income can impact your lifestyle immensely. If your income has increased, a financial professional can advise you on the best way to maximize the additional funds. If your income has decreased, a financial professional can offer crucial guidance on how to make the most of what you have.
- Proper insurance coverage. A new job may bring the need for big-ticket items. If you have to relocate for the job or are moving out of your parents’ house, purchasing a house or condo may be in order. Items such as these are not only expensive to acquire, they also have to be properly insured. In addition, if you have loved ones who need to be cared for in the event of your passing, it may be a good idea to purchase life insurance. If your income has increased, you may want to adjust any current life insurance coverage or supplement your employer-provided life insurance to fully protect your loved ones. You may also want to obtain disability insurance to help support you and your loved ones if you become disabled. A licensed insurance agent can help you assess your current insurance needs and craft a strategy that will cover all the important bases.
- An income tax strategy. With any job comes the payment of income taxes. If you have recently been hired for your first job, you may be seeing things such as withholding for federal and state income taxes, Medicare, and the like for the first time. After the end of the calendar year, you will be required to file your first federal and state income tax returns. An experienced tax advisor can walk you through the process and explain what is involved to help alleviate negative or apprehensive feelings associated with tax season. If you have secured a new job, you may be in a different tax bracket. It would be helpful to know if there are tax credits or deductions that you are now eligible for or if you should itemize your deductions instead of taking the standard deduction.
- Basic estate planning documents. A change in employment can affect your stream of income, purchasing habits, and employee benefit options such as life insurance, disability insurance, health insurance, or retirement plan. All these changes necessitate a plan to protect you and your loved ones during your lifetime, through any periods of incapacity, and at death. If you have not yet created an estate plan, now is the perfect time to craft one. You do not need to be wealthy to have an estate plan. If you have an existing plan, a change in employment is a significant stimulus to prompt a review of the plan.
Davis Law Group Can Help
The experienced estate planning attorneys at Davis Law Group in Chesapeake, Virginia are here to help you make the most of your new adventure. Working together with your financial, tax, or insurance professionals to provide a comprehensive financial and estate plan, we are dedicated to protecting the legacy you are creating. Contact us today to set up an appointment.