After months of hard work and dedication, you’ve finally received a long-awaited promotion or raise – congratulations! It’s a moment of triumph and a clear sign of progress in your career. But after the excitement has dissipated, there are strategic decisions to follow. After all, your financial situation has changed, and those changes trickle down into all aspects of your financial picture.
We created this checklist for you to use when reviewing the potential financial impact of a raise or a promotion, including considerations such as:
- If this promotion or raise has changed your budget, a new income and expense plan may be needed.
- If there are significant changes in the amount of employer-provided benefits (such as stock options, RSUs or Supplemental Retirement Plan), there are a number of planning issues to consider.
- If this promotion generated a higher compensation, it could affect your ability to make contributions to a Roth IRA or deduct contributions to a traditional IRA.
- In addition, a higher compensation may present some tax planning issues. At the very least, you will want to ensure that your withholding is adjusted to ensure you don’t have a hefty tax payment due.
- Your new income might merit increases in life insurance coverage and/or disability insurance coverage.
- And more!
This is a comprehensive checklist of the types of issues that you should address if you receive a raise or a promotion at work. This change can have a great financial impact, and our planning can help you make the most of this career advancement.
You’re welcome to set up a complimentary consultation with our team of financial advisors using the link below.
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.