CUE is pleased to present the following 10 keys to successfully leaving your job.
Determine Your Income Needs
Whether you are retiring or changing jobs, you should decide how much income you need today and in the future to maintain your lifestyle. Remember that even modest rates of inflation will have a big impact on your income needs in the future.
Create a Budget
Anytime you make a change in your job status, you should re-evaluate your spending habits. A budget will help you determine where you are spending your income and what you can modify to adjust to your new situation.
IRA Income Before Age 59 1/2
Most people believe that they cannot withdraw funds from their IRA or retirement plan before age 59 1/2 without paying a 10% penalty tax. Recent changes in the tax code allow you to take income prior to 59 1/2 without paying the penalty tax, but you have to do it the right way. We can show you how.
Analyze Your Current Investments
This is a good time to review your investment portfolio, including your retirement plan investments. You should determine whether your investments match your goals and objectives, time horizon and risk tolerance.
Severance Benefits
If your employer offers severance pay, it might be payable as a continuation of your salary for some period of time or as a lump sum. The timing of the receipt of the pay can have a big impact on your income tax bill. make sure you understand what your options are and which one is best for you.
Your Tax Deferred Retirement Plan
As you leave your job you will need to decide what to do with your profit sharing, 401(k) or 403(b) plan. Most plans allow you several choices: Leave it in the plan, take the cash, roll it over to your IRA or roll it over to your new employer's plan. Pick the option that allows you the most flexibility in meeting your golas during this period of change in employment status.
Pension Options
If you are eligible for a pension benefit, you will have to choose the income option that is best for you. Your plan may have lump sum, single life and survivor options. if you are married or someone else is financially dependent on you, be sure to give careful thought thought to your choice because it cannot be changed later.
Social Security
You should check your Social Security earnings record by sending in a Request for Earnings and Benefit Estimate Statement. The Social Security Administration will send you a full report of both your earnings history and a projection of your benefits.
Health Insurance
Leaving your job also means leaving the security of your employer's health insurance plan. Most plans allow you to continue with the same coverage for 18 months through COBRA by paying the full premium. Many people are shocked at the high monthly cost of their employer's plan. If you are healthy, you should check the cost and coverage available through an individually purchased health insurance plan. You might find a significant savings.
Long-Term Care
Today's cost of confinement in a Long-Term Care facility can quickly erode the savings and investments you are counting on for retirement. Look into the coverage available in a Long-Term Care insurance ploicy and evaluate whether it makes sense to protect your assets with insurance or to self insure.
Your CUE representative can help you with these ideas and many others.
NOT NCUA/NCUSIF INSURED • NOT GUARANTEED BY THE CREDIT UNION
NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE
CUE Financial Group, Inc. is a SEC Registered Investment Advisor and a General Insurance Agency. Brokerage services are offered through Foothill Securities, Inc., member FINRA & SIPC. CUE Financial Group, Inc. is not an affiliate of any Credit Union. CUE Financial investment advisors are also registered representatives of Foothill Securities, Inc. Advisory services and insurance products offered through CUE Financial Group, Inc. are not insured by NCUA/NCUSIF or any other Federal agency, are not deposits of any credit union, not guaranteed by the credit union and may lose value up to the full value of principal invested. CUE Financial Group, Inc. may receive commissions or fees in connection with advisory services or insurance transactions conducted through them.
Leaving Your Job? 
Determine Your Income Needs 
