05 / CAREER CHANGE & TIME OFF

Know what stepping away from work really changes.

Changing jobs, taking a sabbatical, or going down to one income affects more than your paycheck. See what it does to cash, benefits, savings, and the plans that come after it.

LSAMPLE DECISIONILLUSTRATIVE

Can I take a year off without setting retirement back?

THE SHORT ANSWER

Yes—if you keep about 12 months of spending in cash and restart retirement contributions when you return.

The year off uses part of the cash cushion, but the long-term plan stays workable if spending stays near the current level and contributions resume on schedule.

TIME OFF12 moCASH NEEDED~$72KRETIREMENTStill on track

∑ Open Show the Math to see the numbers behind the answer.

WHAT COULD CHANGE THE ANSWER?

Change one thing. See what happens.

Time away from work

Compare three months, six months, or a full year away and see how much cash the plan needs.

Income after the change

Test a lower salary, one-income household, or a slower return to full-time work.

Benefits and healthcare

Include insurance and other costs that used to come through an employer.

WHAT COULD CHANGE THE ANSWER?

The parts of the plan that move with your job.

Cash reserveMonthly spendingIncome + benefitsHealth insuranceRetirement contributions

EXPLORE ANOTHER DECISIONBUYING A HOME→GROWING A FAMILY→RETIREMENT→INVESTMENTS→

START WITH THE DECISION