- Myra Deshmukh quit her job at Amazon in March to start her own business after 10 ½ years there.
- She tried to take advantage of her benefits before leaving so she didn't leave any money behind.
- Her key tips include maximizing your 401(k), using personal days, and managing your stock options.
This as-told-to essay is based on a conversation with Myra Deshmukh, the 38-year-old founder of Leadership Lab in Montclair, New Jersey. It has been edited for length and clarity.
Before opening Leadership Lab, a leadership training and career coaching firm, this year, I worked for Amazon for 10 1/2 years.
I started as the buying and merchandising manager of the apparel category at Diapers.com, an Amazon subsidiary, and by the time I left, I was the senior manager of learning and development programs for Amazon's grocery business.
When you quit your job, you might consider the financial implications but not necessarily how you can maximize your benefits. It's easy to overlook them.
Here are five things you should take advantage of before you leave your job, including some I did and some I wish I did.
1. Your 401(k)
If you're leaving to start your own business and you're not sure if you'll be with another employer within the same calendar year — and you have a 401(k) option with your current employer — max out that contribution for the year.
To maximize the benefit, you might need to change your 401(k) contribution percentage depending on the time of year you're leaving and how much you're making.
When I left in March, I bumped my contribution from 15% to 60%. I only bumped mine up so high because I had two months, January and February, to try to max it out.
2. Paid vacation days and personal days
While it depends on how your company allocates your time off, at Amazon, we had vacation days and separate personal time off. In New Jersey, if you leave your company or your job, you can only get paid for your remaining vacation days — not your personal days.
I had accrued several personal days but hadn't used them, so if I left without using them, I would've forfeited all of that money. I made a plan to use all of my personal days before giving notice.
Make sure your state will allow you to get paid out. If not, consider that when you give your notice and use those days so you get paid for the time off you've accrued.
3. Stock-based compensation
If you have any stock-based compensation from your employer, like me, those stocks typically vest in a holding account at a bank. In that holding account, the stock is technically yours once it vests, but you can't diversify, sell it, or invest it in anything else.
To manage the stock, you'll need to move it into a brokerage account. You can transfer it within the same financial institution that holds your holding account, or use your own personal banking institution to move it into a brokerage account. Once it's in the brokerage account, you can manage it based on your financial strategy.
Companies don't oppose moving it to a brokerage account, but you have to figure out what to do with it yourself. They don't always tell you that when you quit.
There are also some financial benefits to moving it out of the holding account. I got a lower interest rate on my home mortgage by moving my stock to a brokerage account at a specific bank.
4. Medical benefits
It's important to use your medical benefits before you leave. You likely already contributed to your plan via your paycheck for the portion of the year you were employed. Before quitting, I made a plan to get on my husband's insurance plan through his employer, but I still wish I had maxed out my own medical benefits before quitting.
With my vision insurance, I could've received a free pair of glasses, but I didn't get them. After I quit, I thought to myself, I should've bought my glasses before I left.
For others, this might also include attending all of your doctor and dentist appointments or really anything covered by your existing insurance.
Although I knew about these things, I didn't prioritize them, so I definitely left some money on the table.
5. Transit benefits
At my old job, we had transit benefits, where pre-tax dollars could be used for commuting. I took the bus or train daily and paid for those with my commuter benefits. If I ever had to pay to park, I could use them for that as well.
I wish I had maxed those out and paid for a large MetroCard or transit pass in advance, but I'm not commuting regularly anymore, so I didn't think of it. If I had, I could still be using it now when I go into the city.
Do you have a story to share about quitting a job? Contact this editor at [email protected].
