The decision to leave a job can be one of the biggest and scariest of life transitions. This is especially true when you’re mid-career and don’t have a nest egg to fall back on, or your nest egg is still very much a work in progress. If you’re planning a full-on exit from your job without having your next step completely lined up, this post is for you. Maybe you’re making a career change, or you’re thinking of starting your own business. This kind of planning for a mid-career job exit often requires careful planning, and in the context of holistic financial planning, it’s important to consider both the practical and emotional aspects of transitioning into a new phase of life. 

In this blog post, we’ll explore ways to plan a mid-career job exit from the perspective of holistic, financial life planning. I’ll also weave in some of my own story of a time when I planned my own exit.

Clarify Your Objectives

Before I decided to change careers into personal financial planning, I was working in solar, and I only knew that my current circumstances needed to change. I didn’t know yet what I wanted to do next. It was a period of murkiness in my objectives. I had a hunch that my interests lay in finance, but I was unfamiliar with that world. I was coming from a career in sustainability and thought socially responsible investing might be the answer, but I needed to explore my options. I listened to podcasts, read books and scheduled informal interviews with finance professionals to hear what their jobs were like. Through that process I discovered fee-only financial planning, the CFP® designation, and more progressive approaches to financial life planning. I then had a much clearer understanding of my short-term and long-term goals. I would go back to school, take the CFP exam, and pursue a career with a small, independent financial planning firm. 

Before embarking on any exit plan, it’s crucial to gain clarity about your desired objectives and the outcomes. 

• Why are you making this move, and what are you moving toward? If you’re moving away from an unfulfilling career or an untenable work environment, what does your new life look like?
• Reflect on what you hope to achieve by exiting your current situation. Consider both short-term and long-term goals. 
• Do you need a break (e.g. a sabbatical) to catch your breath and reset? Can you afford to make less money or even no money for a while? 

Evaluate how this transition aligns with your values and aspirations. This step will provide a solid foundation for the rest of your planning process.

Establish a Support Network

As I was exiting my career in solar and moving into financial planning, I talked to my friends, family, and even wellness practitioners about my goals in changing careers. I sought out mentors who were in the financial planning space. I got plugged into Facebook groups and forums. I give credit to that support network for the smoothness of my career change. It’s beautiful to see how much people will do to help you in a transition, especially those who have gone through a similar experience. Sometimes you just need someone in your corner to tell you “it’s gonna be okay.” 

Having a support network can make a big difference. 

• Share your intentions and plans with trusted friends, family members, or mentors who can offer guidance, encouragement and emotional support.
• Consider seeking professional help if needed, such as career counselors or therapists who can assist you in addressing any emotional hurdles you encounter during the exit planning process. 

Assess the Financial Situation

Staying put for a while in my prior solar job was a crucial part of my transition plan. I rented a cheap room in a shared apartment in Cambridge to dramatically lower my expenses. I worked full-time for a few months longer to save up money to pay for my financial education and build up cash reserves. This afforded me flexibility and helped me expedite the process of switching careers. 

A big part of a mid-career job exit involves evaluating your financial position. The financial levers that you can pull will be unique to your situation. Start by examining your current income, expenses and savings.

Consider the potential financial implications of your exit: 

• Are you losing access to health insurance? How much will it cost to continue your plan via COBRA if possible, or to purchase new health insurance?
• If you have an employer-provided retirement plan, do you know how to access it? And will you roll it over to a new platform after you leave?
• What other benefits will you be losing that you had at your previous employer? 
• If you have stock compensation, what actions do you need to take for your departure?
• If you’re starting a business, what kind of cash savings do you need ahead of time to give yourself a jumping off point? 

Develop a picture of what your expenses and income may look like during the exit, and after the exit. Seeking advice from a financial planner can be very beneficial at this stage.

Build an Exit Strategy

The biggest factor of success in my exit strategy was getting pieces in place ahead of time before I quit my job. I made arrangements to live with relatives later in the year. I started the CFP® education ahead of time so that I would be mostly done by the time I left my job, and I started conversations within a few professional networks to plant the seeds for finding employment opportunities sooner than later. 

Crafting a well-thought-out exit strategy is crucial for a smooth transition. Identify the necessary steps you need to exit your current job safely. This could involve updating your resume and professional network, seeking legal advice for ending a lease agreement, and preparing for a move. If it helps, map out a timeline for each step, setting realistic expectations along the way. Even though there will always be surprises, having a structured plan can provide a sense of control and reduce anxiety during the transition process. 

Prepare for Contingencies

A few months after quitting my job and moving in with relatives, the pandemic began. Luckily, I was in a place where I could extend my stay for a while, and I found part-time remote work. I also had an emergency fund that could cover several months of expenses if I needed it. Along with the family that generously housed me, having an emergency fund in place gave me peace of mind. 

Life is often unpredictable, and it’s essential to prepare for potential setbacks or unforeseen circumstances during the exit planning process. Establish contingency plans to address unexpected challenges that may arise. This could involve having a backup source of income, creating an emergency fund, or exploring alternative living arrangements. By considering potential obstacles in advance, you can minimize stress and stay focused on your goals.

Embrace Personal Growth

For me, simply making the decision to exit my prior career and move into unknown territory was expansive and empowering – and I learned a ton about myself throughout the whole process. Today, I still use many of the skills I learned and the strengths I developed during that time.

Exiting a career that no longer serves you provides an immense opportunity for personal growth and self-reflection. Use this transitional phase to reevaluate your values, strengths and aspirations. Explore new avenues, expand your skill set, or engage in activities that nurture your personal development. Embracing personal growth can empower you to make more informed decisions and create a fulfilling life that’s really aligned with your true self. 

Having a well-rounded plan in place when exiting a job mid-career can help you navigate this big life transition with confidence and grace. Remember that exit planning is a process that often requires patience, resilience, and self-compassion. With careful consideration and strategic planning, you can pave the way for a brighter and more fulfilling future.