Evaluating a new job offer

[riverwed070707]

As mentioned in a different thread recently, my career objectives have exactly 0 to do with climbing the ladder and 100% are just a means to an end. Interestingly, I was approached about a job opening today. Same company, two pay grades higher than where I am now + would move from a 12% bonus to a 15% bonus - in dollars, it would be a minimum of $40k more than I'm making now, representing about a 50% pay increase. Hours/responsibilities would be comparable and I still would not have any direct reports (I have no aspirations to manage people).

At first I was seeing big $$$$$$ and thinking about how much quicker I could achieve some of my goals with that much of a bump. Then I started running some numbers and my excitement faded. I calculated that after tax, my pay check would really only increase about $885/paycheck (bi-weekly and not including 401k contributions) or a total of $23,010/year. I don't want to scoff at $23k but its amazing how HALF of the whole increase is eaten up by taxes! Its a much less compelling number for me to give up my role I have now where I have spent 13 years becoming an expert in my field to move into something I know nothing about and will spend the next two years learning a whole new side of the business.

I figure everyone has a number - as in, I love my home but if someone offered me double its value, I'd move. Does the same happen for jobs? If you like your current job in all aspects, do you have a number that would have to be met in order to convince you to move on?

[kork13]

If the new job seems like you would also enjoy and be happy with it, there's no reason not to take the increased pay & go do it. Sure, taxes are a pain... But it only means you're earning more. Depending on your exact income & state taxes, losing 30-40% of a pay bump to taxes is totally normal.

Short answer to your question, is that yes absolutely, if someone were to offer me enough to go & do something I enjoy for better pay/benefits, then I would absolutely do it. I have your mindset as well, no lofty career aspirations -- I just want to do my job, help people, and take care of my family. Means to an end. And getting significantly more pay would definitely make that end easier to accomplish.

[riverwed070707]

If the new job seems like you would also enjoy and be happy with it, there's no reason not to take the increased pay & go do it. Sure, taxes are a pain... But it only means you're earning more. Depending on your exact income & state taxes, losing 30-40% of a pay bump to taxes is totally normal.

Short answer to your question, is that yes absolutely, if someone were to offer me enough to go & do something I enjoy for better pay/benefits, then I would absolutely do it. I have your mindset as well, no lofty career aspirations -- I just want to do my job, help people, and take care of my family. Means to an end. And getting significantly more pay would definitely make that end easier to accomplish.

Fair point. I think I'm afraid I won't enjoy it as much or what if I take it and don't like it and can't get my old job back? My current job has some pretty hard to replicate non-monetary perks. I LOVE my boss - we're great friends but she's also the best boss I've ever had. I (used to) get to travel 1-2x/mo to some pretty cool places and often use that as an opportunity to extend my trip, essentially traveling for free. My team and co-workers are the greatest. I've just been exposed to a lot of really incredible experiences that many people in my industry couldn't even dream of doing over the course of their career and I think I have some FOMO once events start back up.

New job would be stationary, working with internal people and regulators. I don't think I will dislike the other job, I just think there's no way it can be as great as the one I have now.

But you're right. If I won't hate it and it brings the end closer, why not.

[disneysteve]

If the new job seems like you would also enjoy and be happy with it, there's no reason not to take the increased pay & go do it.

Short answer to your question, is that yes absolutely, if someone were to offer me enough to go & do something I enjoy for better pay/benefits, then I would absolutely do it. I have your mindset as well, no lofty career aspirations -- I just want to do my job, help people, and take care of my family. Means to an end. And getting significantly more pay would definitely make that end easier to accomplish.

Same here. No corporate ladder climbing desires. I just want to earn and save as much as I can so that I can walk away when we're ready. If I got offered 50% more money for a job that I think I would enjoy, I would absolutely take it. Whatever of that increase lands in my paycheck would go 100% into savings to allow me to retire sooner.

[disneysteve]

I think I'm afraid I won't enjoy it as much or what if I take it and don't like it and can't get my old job back?

That would certainly be my main concern. It could sound good on paper but not be so rosy in reality. You have to weigh the potential pros and cons. If the travel is something you really enjoy with your current position, is it worth giving that up for more money? Maybe, maybe not.

Tough choice for sure. You shouldn't change just for money because that can often end badly. You really need to dig into the details, speak to folks on that team, maybe speak to the person you would be replacing if possible, etc.

[rennigade]

If its something you think you would enjoy, go for it. Also, the money being taken in taxes is short sighted. You have to think long term. You'll have more money to save, more money to invest, and your social security will also be more. You should crunch some numbers. Try to figure out how much more you would be investing and run the numbers. There are plenty of online calculators with different interest rates.

[ua_guy]

I'll play devil's advocate for a minute. If you've got a great boss who could be the key to preserving what you have, or who may be the key to opening up something even better in the future, that's really something to consider. Bosses have a way of making or breaking a job. You've said you wouldn't hate what you will be doing in your new role, but do you want to do it? I'm of the mindset that jobs in the professional world take 3, sometimes more, years to really learn before they start to feel routine. Being "on" for that time and having to learn a whole new role is something to consider, but then again, after 3 years you'll be another $70k up the road assuming no other raises. I can't say if that's worth it but I do know a great boss and comfort with your daily work is worth its weight in gold.

[riverwed070707]

That would certainly be my main concern. It could sound good on paper but not be so rosy in reality. You have to weigh the potential pros and cons. If the travel is something you really enjoy with your current position, is it worth giving that up for more money? Maybe, maybe not.

Tough choice for sure. You shouldn't change just for money because that can often end badly. You really need to dig into the details, speak to folks on that team, maybe speak to the person you would be replacing if possible, etc.

Good point but I do have a bit of an advantage here as I took on a short term project management role in the department I'd be moving to. I've been working with them and directly with the person I'd be reporting to since the end of January, including working intermittently from their location so I have a pretty good feel for the group/boss/culture/expectations.

[riverwed070707]

I'll play devil's advocate for a minute. If you've got a great boss who could be the key to preserving what you have, or who may be the key to opening up something even better in the future, that's really something to consider. Bosses have a way of making or breaking a job. You've said you wouldn't hate what you will be doing in your new role, but do you want to do it? I'm of the mindset that jobs in the professional world take 3, sometimes more, years to really learn before they start to feel routine. Being "on" for that time and having to learn a whole new role is something to consider, but then again, after 3 years you'll be another $70k up the road assuming no other raises. I can't say if that's worth it but I do know a great boss and comfort with your daily work is worth its weight in gold.

Another great point; however, I can confidently say I'm being offered this opportunity because of my current boss and her encouragement for me to expand and take on projects outside of our group as part of my professional development so while you're correct and I agree there could be something else down the road, I think high paying individual contributor roles are pretty hard to come by so it might be a couple years before another opportunity comes along. I don't know if I want it haha That's the million dollar (or $40k) question!

[disneysteve]

Good point but I do have a bit of an advantage here as I took on a short term project management role in the department I'd be moving to. I've been working with them and directly with the person I'd be reporting to since the end of January, including working intermittently from their location so I have a pretty good feel for the group/boss/culture/expectations.

That's great. Then you probably have all the info you need to decide. At least you wouldn't be going in blind. It really comes down to the change of duties and lifestyle (no travel, etc.), different coworkers, etc.

I second what rennigade said. Run the numbers. See how much the extra income would actually advance your goals. Are we talking about retiring 6 months sooner or 6 years sooner?

Personally, I'm 56 and very possibly as little as 4 years from retirement. At this stage, I probably wouldn't switch jobs because it wouldn't move the goalpost that much, but if I was younger, absolutely.

[scfr]

Could taking on the challenge of learning a new side of the business have long term brain health benefits? Sometimes temporary "discomfort" provides long term benefits beyond the merely financial.

[LivingAlmostLarge]

That's great. Then you probably have all the info you need to decide. At least you wouldn't be going in blind. It really comes down to the change of duties and lifestyle (no travel, etc.), different coworkers, etc.

I second what rennigade said. Run the numbers. See how much the extra income would actually advance your goals. Are we talking about retiring 6 months sooner or 6 years sooner?

Personally, I'm 56 and very possibly as little as 4 years from retirement. At this stage, I probably wouldn't switch jobs because it wouldn't move the goalpost that much, but if I was younger, absolutely.

How do you know it wouldn't move the goalpost? What if it were a job as a urgent care dr in Florida? Does that move the goal posts?

I think it depends. Sometimes it's hard to switch and sometimes you get a kick in the behind to do it. DH is going to do it. Change jobs and he's getting very excited. He hasn't been as long as you have (4 years only) before he is switching. But i do like the fire he's starting to feel. I feel like he's more excited about it than he is about his job and that's important.

I think his current job is good and pays well. He's comfortable and does well. But is he excited? I can't tell. he is now with the new job prospect.

As for me? Same old same old. How much? too much minimally for me double or more. I need flexibility more than I need money.

[disneysteve]

How do you know it wouldn't move the goalpost? What if it were a job as a urgent care dr in Florida? Does that move the goal posts?

I was strictly speaking of the money - if I got a 50% increase like OP was offered. For me, that would mean about 120K so maybe 65-70K after taxes. If we saved all of it, that's about 200K in 3 years. That's a nice chunk of money and could maybe have me retire a year earlier, but I'd have to balance that with the fact that if we retire a year earlier, we'd need more money saved, so it might be a wash. Of course, it could also mean that I could keep the same general retirement date but walk away with an extra 300K which would nicely pad the retirement savings. That wouldn't be a bad thing either.

If someone comes along and offers me that kind of money, I'll let you know what I decide.

[~bs]

"only 885/paycheck after tax? That's quite a bit of money. for many people. It basically equates to being able to maximize contribution to a roth 401k on its own. Yes, if you're looking at marginal tax rates, making additional amounts of money gets taxed very high. It's why I mentioned in a previous thread that it almost doesn't make sense for me to keep doing my side business because my tax rate on that income is likely over 50%, which is insane. I put in the time and effort and risk to make $10k, the government gets over 5k. Nuts.

How much would it take for me to move jobs? It really depends on the amount of work, hours, transition difficulty, etc. There is always risk in changing jobs. I've moved for as little as 15% before. Nowadays, I will not move for peanuts. I'd move for 50-100% increase. That's what it took for me to move into my current job. That's what it would take for me to move out of it, and it's not always about the money. Some jobs are just not worth taking regardless of the money.

[Drake3287]

Follow your heart as to which type of position or pay level your happy with. Like many here, I chose to stay at a mid-level position that I enjoyed but at the same time I saved and invested during my entire career even though I made a lot less money than the higher paid positions. In the end I consider myself to have won, I'm happily retired now and I have more wealth than any past employee I worked under including the top positions. Many of these higher paid fellow employees are also my friends, half of them can't even afford to go out to lunch now simply because they never properly saved for retirement.

Bottom line, you don't have to have a high paying position in order to retire financially well off, just the ability to save and invest modestly.