Congratulations, Now What?
Late May and early June is the “Commencement Season,” when millions begin a new stage of life that is focused on launching careers. It’s cliche for blogs like this to offer a version of a commencement speech, full of pithy advice for graduates. Instead, I’ll highlight some practical financial decisions to be made by those launching careers, and those interested in a refresher on these topics.
Private companies are the largest employers in the nation. According to the latest data on private companies from the Bureau of Labor, 30% of employee compensation comes in the form of employer-provided benefits. These include healthcare plans, life and disability insurance benefits, tax-favored savings plans, and retirement benefits. Some firms also offer car allowances, cell phone plans, charitable gift matches, and other niche benefits. These employer-provided benefits are generally non-negotiable, but many are optional, offered a la carte, or require decisions from the employee. It’s important for all employees to understand their benefit options, and to make informed decisions based on their own circumstances.
For example, 401(k)-style retirement plans can be of significant long-term financial value, but many employees fail to capture this value out of ignorance or fear. Employees will need to decide whether to participate, the appropriate level of participation, which plan types (pre-tax or Roth) to choose, and which investment options to select. Employer matching contributions in these plans are essentially free to the employee, making some default level participation appropriate for almost everyone. Every other decision around these plans depends on plan-specific and employee-specific factors. Informed decisions will require effort.
Employees should also understand the tradeoff between the short-term impact on their net pay versus the long-term impact of accumulating significant assets for future use. Personal budget constraints and the need for a certain net pay may limit the ability to participate in many of these benefit programs. Tax withholding and the pre-tax or post-tax nature of certain benefits are also important for employees to understand. The discrepancy between one’s salary and the net take-home pay can be a jolting experience for new employees. Anticipating these issues is part of a good budgeting process.
Budgeting also includes the expenses one anticipates because of a new job. A new career often also means taking on expenses that were previously paid by parents or family. This might include car insurance, groceries, and utilities. New graduates may also have student debt to address and may need to anticipate managing credit card expenses. The interaction between one’s budget and their employee benefit decisions is significant.
The good news is that this is an old problem. Family and friends have all faced these questions before you and can provide guidance. Resources also exist on financial websites, in books, and even with your new employer. We think it’s important for those launching careers to understand these choices, and we’re willing to help. We will be hosting a webinar on June 29th at noon for our clients and their families. If you are interested in attending the webinar, or receiving a replay, please click below to indicate your interest, or contact us at planning@nhoffmanandco.com to learn more.
Russ Wood
Financial Basics for Professionals
We will cover essential financial topics, such as employee benefits, taxes, savings strategies, and debt management, to help you make informed decisions.
Date: 6/29/2026 | 12 PM ET
Location: Zoom