Choosing between job options

Anything to do with the traditional world of get a degree, get a job as well as its alternatives
Post Reply
thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Choosing between job options

Post by thrifty++ »

I have a bit of a 1st world "problem" or luxury of choice is another way to put it. About whether to take a new job or not.

I am satisfied in my job. Its not amazing but its just ok, I am a lot happier about it lately as I made a plan which really excites me. I decided to initiate the pathway to early retirement by gradually reducing my hours. I am currently now working a 9 day fortnight. This is something I just negotiated and started recently. On top of this I have a side hustle which takes up about a day a week, so in reality I am working an 11 day fortnight. I have planted some "stepping stones to early retirement". So the next step is to drop to 4 days a week which I suspect I will be able to afford to do from about March 2022. Again with my side hustle of one day a week. Then, I suspect I will be able to drop to three days within about 18 months of that, I am loving the 9 day fortnight so far. Really am.

At my current job I am earning a salary of $112k. But its pro-rated down from that for a 9 day fortnight, Then for my side hustle I earn about $15k. My net worth is around $364k.

Two new opportunities have come up. One is on $250k. Its a very high stress job. But quite prestigious and obviously well paid. I applied for it some time back and I REALLY wanted it then. It was a dream job to me. But, fast forward and I have a lot more money now and a lot less interest in high stress jobs and am a couple of years older too. And also excitement about my plan I made and calculated for a gradual transition to early retirement. But through decreasing hours of work over time. Also a recent tax change where I am means now that any earnings over 180k per annum have a shit tonne of tax taken out of them which make those high stress earnings have significantly decreased marginal returns. I would also need to ditch my side hustle if I took this job.

Another opportunity that I like offers a salary of $145k. Its not super high stress like the other job. I am unsure as to whether I could retain my side hustle or not. But its possible I could. Experiment and see how it goes. If I had not made my nice plan to exit the workplace with less hours I would have been really keen on this job. But now I am unsure as I am loving the 9 day fortnight and excited about dropping to 4 days a week once I can. I could always try negotiate a 9 day fortnight with them. But then, the job is not easily dividable. My crrent job is easily dividable so reducing hours is very effective. Rather than just what can happen is that reducing your hours means you just get your pay chopped but you end up doing the same hours and workload for less pay. (EDIT) Forgot to mention that this job is temporary, only for 12 months. So it is uncertain whether it would continue after that. Although, it usually does, but no guarantees.

Overall, I feel kind of checked out. I feel like I am somewhat over my industry. I dont really feel that excited about working in it anymore. So its almost like biding my time until I can early retire. But then, I find the less hours I work the more II like my work.; So its a quantity thing. Maybe Im just burnt out.

Any ideas or light to shed on these options? Also I havent been offered these roles yet. Only just applied. Although I think there is a high chance I will be offered them.
Last edited by thrifty++ on Fri Sep 17, 2021 3:36 pm, edited 1 time in total.

User avatar
unemployable
Posts: 1007
Joined: Mon Jan 08, 2018 11:36 am
Location: Homeless

Re: Choosing between job options

Post by unemployable »

I quit my last job with about that much net worth, like within a couple percent, but in 2010 dollars and stock market valuation. Part of my analysis at the time of quitting was that we were mostly clear of the 2008 crash and recession, the worst of it at least, so I was implicitly betting on a favorable sequence of returns. My pay was in your neighborhood -- 2010 dollars again plus a bonus in the 20% range, not sure whether you're including that. My initial plan was not to ERE forever, just for a summer, although after a couple years I did eventually adopt ERE.

Now, had I known I was going to select the ERE path and experience the failures in getting back to work that I did, I would've tried to work a couple years longer.

I understand your concerns about additional stress and the feeling of having already checked out. Although what job searching I did do was in the field I had left, I am WAY checked out by now. It's just not possible for me to give a crap about the stuff I cared about 11 or even four or five years ago. Once you walk out of the office, whether every day or for the last time, none of it matters. Personally I didn't feel a whole lot of stress and kind of wanted more, although my tolerance for that is kinda high. More like a general ennui of not having accomplished much, not using all the intellectual firepower I felt I possessed, not being a vital or terribly successful part of my firm and having had enough of Chicago.

You're not in a bad place now of course. Basically you have 26 vacation days plus whatever formal PTO they give you. Personally I would've easily taken a four-day work week for a 25% pay cut back then, but I didn't have a 250k offer dangling over my head and the job market back then was horrible. Unless you absolutely loathe your current job, and it doesn't seem like you do, I don't think the $145k job is worth switching to. That's like $10k net of taxes and the loss of your side gig. Easy call, you have $350k banked, you probably have a lot of days where you or make or lose more than that in the stock market. So what?

Now the $250k job. That's a net gain of $100k. so much harder to dismiss. Usually stuff at that level comes with larger boni and shareholderships too. For most people that's the inflection point in their careers that takes them into higher social classes and the like, so not a hard decision for them to make, but all with the stress of having to keep it up of course -- things like more expensive houses and vacations and cars and country club memberships and sushi every day for lunch the like. You of course are mercifully free of the ravages of upper-middle-class life.

Often those jobs come with internal pressure to consume more. An old girlfriend got promoted once and immediately her boss took her to look at Porsches on lunch break. I've talked to investment managers that explicitly said they didn't want their traders saving their money. They'll want to sponsor you for the club and keep asking you why you haven't bought a house in Expensive Nice Suburb yet. You may get socially shunned with an ERE mindset. Two-fifty isn't really that upper bracket nowadays, but it happens.

Is there any chance you'd like it? Would there be new things you might find rewarding being motivated to do? Will you have a lot of competition nipping at your heels and is the policy to cull the bottom performers, as GE used to do?

How undo-able is the decision? I suspect if you wanted to downshift after a year at the 250k job you could.

2010 me would've jumped at $250k and internally committed to it for a couple years, and I highly doubt the 2021 me in that timeline would've regretted it. Three or four years of that job would let you regular RE instead of ERE. I think I would take it. No one would blame you.

Edit: Only just applied? How far along are you in fact? You need to be at the finalist stage before any of this is worth the mental energy. A place with a high-consumption mentality would likely sniff you out before then, or cut that all-day interview to 15 minutes when they see you roll up in a 1998 Corolla.

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Choosing between job options

Post by thrifty++ »

@unemployable - great experienced tips thanks.

After tax is a good way to look at it.

- Currently my after tax income is around $88k (annualised - my day off unpaid is irrelevant to me as its worth the same).
- The $145k job is around $104k after tax. So $16k more
- The $145k job plus the side hustle if I can handle keeping it is around $111k. So $23k more.
- the $250k job with which I cannot keep my side hustle is around $167k. So $79k more.

Also, forgot to mention that the $145k role is for a 12 month period. Not permanent. Good chance it may get rolled over after but no guarantees. So, thats one I must factor in too. So, I would definitely need to keep my side hustle as I could end up being forced into premature early retirement.

Interesting that you would have liked to have worked a couple of years more. Thats good to know. I am not ready to dip out yet. Not even with my side hustle. Which is where the gradually reducing hours come in. Phased in over a few years.

The $250k job would be a definite career boost. And I would have a lot of bargaining power to pick and choose whatever I want to do within my field after that. That is, provided I dont cock it up. If I cocked it up I would be finished.

I dont think that there would be much pressure to consume more in the 250k job. My spending might increase a bit more as a way to handle the stress rather than due to peer pressure. Like, I might not want to live in shared accommodation any more. Might want my own place. And one that is quite comfortable.

Is it undoable? Hmm kind of. I think it would be hard to downgrade. I dont think that I could work part time in this role. I have never heard of anyone working less than full time in the role. So, I think that's off the cards. I would also have to ditch the side hustle. So, that would make me quite trapped in the role. Because I cant afford to early retire yet without that income supplement. Best case scenario is I could try be re employed where I am if I hated it, which would be possible but not certain.

There is a chance I would like the 250k job. There are certainly skill development and intellectual challenges that are very appealing. I would definitely grow significantly in my skills and knowledge. A real growth period.

Oh yes I have only just applied. haha. No interview yet. But, I am pretty sure I will move along the process. I came close to getting that 250k job in the past but when I really wanted it.

All good things to think about that you have raised

User avatar
Seppia
Posts: 2016
Joined: Tue Aug 30, 2016 9:34 am
Location: South Florida

Re: Choosing between job options

Post by Seppia »

At your level of savings, to me this would be a one-second decision.
Ok i am probably stuck in a salaryman perspective but $250k.
$250k

Unless you start throwing money around you can almost double your NW in two years, creating a massive margin of safety in a very short time.

The $145k job seems like a pointless exercise. Not enough more and a lot of unknowns.

Don’t overthink this.

User avatar
Viktor K
Posts: 364
Joined: Sat Jul 30, 2016 9:45 pm

Re: Choosing between job options

Post by Viktor K »

Keep the current job, accept both new jobs, 1-2 week stagger if possible on start dates. After 1 month, choose which 2 to keep. If your first one is easy, why eliminate that $112k?

Post Reply