Checklist - Concerns about my new job

Legal and tax considerations
Personal finances
Protecting and maintaining my new standard of living
Other related sections
Useful links

Legal and tax considerations

I take advantage of this fresh start to update my tax documents.

• I consult a lawyer or notary :
  
  
  • I double-check my employment contract to make sure that the contract won't prevent me from starting a new career or setting up shop on my own should I ever decide to leave this new job. I also want to double check the compensation package outlined in the contract.
    
    
  • I take this opportunity to prepare or review my will and to set up an enduring power of attorney (called a mandate in anticipation of incapacity in Quebec). This document authorizes another person to make decisions about my care or my possessions if I should become incapable of doing so for myself.
    
    
  • I also want to set up a living will so that if I become incapable of expressing my wishes, my loved ones will know what kind of medical care I want or don't wish to receive.
    
    
    
• To make things easier for my loved ones or a proxy, who will be taking care of my affairs if I become incapable of doing so, I will draw up an inventory of my possessions, I'll fill out a personal record of my assets and a checklist of people and places to contact in the event of my death or incapacity.
   

Personal finances

Pension plan
 

• With the help of my advisor or accountant, I decide whether it is best to leave my pension plan where it is, transfer the funds to a locked-in retirement account to manage myself or transfer the funds to my new employer's plan.
   
• I find out about locked-in retirement accounts (LIRA), the conditions that apply, the types of investments offered and expected returns.
  
  
• I ask my new employer whether it is possible to transfer my pension plan.
  
  
• I'll inform my old employer of my decision within the allotted time.
   
  

Planning

• I take advantage of this fresh start to put my financial house in order. I create a personal balance sheet to paint a portrait of my financial situation, and make a budget for myself. This will show me where my money is going.
  
  
• I set financial priorities to help decide what to do with my new salary. What will my priority be?
  
  
  
  • Paying down my personal debts?
  • Contributing to my RRSP?
  • Making my dreams a reality?
    
    
    
• Some projects require more time and planning than others. Retirement is one of these. It's never too soon to start thinking about it.  For example, the table below shows that it pays off to start saving early. Compare the savings required to provide the same retirement income at age 60 for an individual who starts at age 25 and someone who starts saving at age 40. (This does not include the tax savings obtained through RRSP contributions.)
  
  

  
  
  

Monthly RRSP contribution required for approximately the same capital at age 60, based on the age at which savings begin.
7% rate of return
Age at start of deposits	Duration of deposits	Monthly contribution	Total deposits	Accumulated compound interest	Accumulated capital at age 60
Age 25	35 years	$166	$69,720	$230,999	$300,719
Age 35	25 years	$369	$110,700	$189,960	$300,660
Age 40	20 years	$573	$137,520	$162,712	$300,232

• I don't want to keep working until age 65, so I decided to continue paying into my previous employer's group RRSP. To better manage my finances, I'll include this in my budget. An added bonus is the fact that, thanks to the Home Buyers Plan (HBP), I can use my RRSP capital toward a down payment on a house.
  
  
• To determine the exact amount I must contribute to my RRSP in order to obtain the capital I desire upon my retirement, I'll use the retirement simulator. The saving up for something special simulator can help me plan to achieve other goals.
  
  
• In addition to building my retirement portfolio, my RRSP contributions reduce my tax bill in two different ways. First, my contributions are deducted from my taxable income, reducing the amount of income tax I have to pay. What's more, I accumulate compound interest tax free—it's like killing two birds with one stone!
  
  
• If I make my RRSP contributions directly through payroll deductions, I can have my employer immediately reduce the income tax taken off of my paycheques, meaning that I can make my contributions without much of an impact on my net earnings.
  
  
• The saving up for something special simulator can help me decide how much of my pay increase to earmark for my special project.
  
  
• Since I have so many possibilities at my disposal, and my decisions can have a major impact on my quality of life now and in the future, I'll contact my representative who will help me with my financial planning and help me decide what actions to take.
  
  
• I create an emergency fund to plan for the unexpected, in case I should ever need access to ready cash faced with a difficult situation.
   

Protecting and maintaining my new standard of living

• I find out about the types of group insurance (life, disability, complementary healthcare, etc.) offered by my new employer, as well as the effective date of my new coverage.
  
  
• If I'm not eligible for the new plan for some time, or if the available plans do not meet my needs, I consider adding a complementary healthcare option to pay for expenses that are not covered by my group insurance plan.
  
  
• I contact my new employer to find out when my life insurance coverage terminates. Since it is possible to convert this coverage into an individual policy without providing evidence of insurability (EOI), I find out about the costs and nature of the product I can convert my plan to, as well as the timeline for so doing.
  
  
• Once I have this information in hand, I contact my representative to assess the proposals, to ensure that they correspond to my salary and lifestyle and to see how they can be integrated into my individual insurance portfolio.
  
  

Maintain business relationships
 

• Networking is a priority…you never know what the future has in store! I've advised all of the people with whom I regularly do business of my change of employment.
   

Other related sections

• I consult the section I need advice tailored to my situation to see examples of similar situations and obtain practical advice.
  
  
• I use the checklist tips to follow before going on a trip and consult the section I'm going on a trip.
  
  

Useful  links

Changing plans or starting a new job - RAMQ
Emploi Québec
Change of employer - Immigration et Communautés culturelles – Quebec
Citizenship and Immigration Canada - Canada
Ministère de l'Emploi et de la Solidarité sociale - Quebec
Ministry of Citizenship and Immigration - Ontario
Ministry of Economic Development and Trade - Ontario
Human Resources and Social Development Canada - Canada