Making a career change does not have to be a painful transition if you understand how to navigate through without a major loss of income or lifestyle. Obviously, a retirement savings plan is an important consideration when deciding to take a new job or start your own business.  Talking to a NewBridge Bank financial advisor is a great first step in striking out on your own.

Here are some issues you should think about when changing jobs:
Today, it is indeed a rarity to spend an entire career with one employer while also being covered by the company pension plan. 

Here are some fast facts:

• Harvard University reports women are leaving corporate America at twice the rate of men either because they are changing jobs or starting their own businesses. 
• The Bureau of Labor Statistics report men over 25 stay with an employer an average of 5.3 years, while women remain with their employer for only 4.7 years (just a few months short of the 5 years it typically takes to vest in a 401(k). 
• One of the many things you should consider when changing jobs is how it will affect your retirement savings plan.
• It's a fact that many plans are cashed out to cover expenses or pay down debt.  This decision can be a very costly mistake because the tax penalties are typically higher than the interest on your credit cards, so it just doesn't make sense to use money from your 401(k) to pay off debt.

Instead of cashing in on your retirement plan think about one of the following:

• Transferring the Savings to a Rollover IRA.
• Whatever career transitional state you are in, a Rollover IRA offers a broad range of investment possibilities. Even if your new employer offers a 401(k) plan, transferring your funds to a Rollover IRA might be a good idea.  A Rollover IRA is different than most retirement plans because it allows you to control where your money is invested. It's never wise to mix 401(k) funds with an existing IRA. If you have an existing IRA, set up a new one to roll your 401(k) money into could be the best idea.  Talk to your NewBridge Bank financial advisor to find the right IRA for your needs.
• Roll the Money Over into Your New Employer's Plan.
• Generally, you can move your money from your old plan into the new one even before you are eligible to contribute to the new plan. Once you receive a cash-out check from your old plan, you have 60 days to roll it to a new plan and still avoid the taxes and penalties. The 20% they withheld from the check can be reclaimed when you file your taxes at years end.  Unfortunately, it can't be rolled back into your 401(k).
• Keep Your Money Where It Is Today.
• If you have a balance of $5,000 or more, you can leave your savings in your current employer's plan until it's time to retire. This is a good short-term solution to protect your money until you have a chance to consider other alternatives.  Unfortunately, you are limited to contributions of $3,000 for the tax year 2002 to an IRA-unless you have reached the age of 50, which means you are eligible for catch-up contributions of $500 per year. If you're self-employed, that may not be enough to suit your savings needs.

Work with a NewBridge Bank financial advisor to design the right investment plan for you.