How to Evaluate Offers

[Canadian FIRE]

Well I'm in a bit of situation. I have a job offer in the mail to me and I'm not sure what to do with it. I like my current job, but the offer also has its good points.

Current Job:
80K Salary & Bonus,
Benifits: company truck, dental, health, eye care, full funded company pension, life insurance
Other issues: Living 15 hours away from the rest of the family.

Offer:
62K Salary & Profit sharing for ? more.
Benifits: dental, health, company match pension, life insurance
Other issues: Will live in same city as rest of the family (free babysitting, etc.)

How the hell do you weigh other issues in comparsion to a drop in salary? Just looking for ideas.

Thanks,
CF

[Zipper]

Do some scenarios with the taxman.

It isn't what you make, it's what you keep. Your $80K is what makes Revenue Canada salivate.

The clincher for me would be the family. They grow up too fast. I would have to be with them.

Your present co. pension will take many years to build value and might not be portable if you decide to leave in the future. It could even have funding difficulties down the line.

The new one sounds like a group RRSP or something similar to a 401K.

I would max that one from day 1.

Ask the family.

I bet they would want Dad? at home.

[Lazarus]

Stay in the city where your family is. Not enough money to compensate for that. Good luck.

[Ed_The_Gypsy]

I think Canadian FIRE is speaking of extended family (mum, dad, gramma...). It sounds as if (s)he is living with spouse and kid(s) now.

18K/yr is expensive for free baby-sitting. Why not stay where you are and fly them out once in a while? You can be just as poor and save the trouble of moving. Seriously, changing jobs and moving is a headache. I know!

One thing I know about jobs: It is easy to go down in salary; it is hard to get back up again.

How about moving to Alberta? If you have to be away from the folks, get paid well to do so. Jobs are everywhere in Calgary, Edmonton and Ft Mac. I just read that two restaurants closed in Drumheller because they couldn't get workers.

All the best,

Ed The Gypsy,
Formerly from Houston, where they think 30 C is cold,
in Calgary today, where they think 30 C is hot!

[Caroline]

You're 28, right? My question is whether you have a "job" or a "career." If it's a job, then others have given good advice (I have no kids so I defer to the wisdom of those who do.)

If you have a career, then my advice would be to take the job with the opportunity to add skills and experience.

You've got a lot of working years ahead of you -- growing in your field (and growing your income as you do so) can make up for a lower salary right now.

My two cents,
Caroline

[cute fuzzy bunny]

Easy: the "other stuff" has no value unless its guaranteed. I've had options and bonuses and all sorts of stuff that looked "solid" not turn up a dime, and other similar features at other jobs that...well...made me millions. There was absolutely no way to tell going in. Pensions get dropped, bonuses dont materialize, etc.

You didnt say whether living close to the family was a plus or a minus...that seems to be the lynchpin "feature". Trading 18k a year for being close to the family?

[Canadian FIRE]

Well that is a lot of ideas. Thanks everyone.

To clear things up. Yes, I'm 28 and living with DW and kid. The 'family' would be extented family who would be closer. I like the idea of the kid growing up knowing his extended family. Right now we see them at best twice a year.

Current I have a job that could lead into a career, but it would be in sales, which I'm not crazy about, but not bad at. I'm an engineer by degree and the new job would be with a consulting engineering firm. The firm has lots of advancement potential and I would be working on some exciting new technologies for clean coal power production.

Money wise it's actually fairly even. Base salary now is 63K and bonus brings it up to 80K. So after tax basis I would be losing less than 8K/year. Lifestyle wise I live on around 40K, so it will not effect my standard of living at all, but could push off my FIRE date a bit (or not I would be moving to any with a lower cost of living than I have now).

The pension right now I can take a payout and roll it into a personal Locked In Account at my bank. It's not much, I would most likely get a cheque for 10K or so.

I am still waiting for the formal offer letter in the mail, so I can compare benifits in detail. So unless they are very bad I think I'll take the new position.

Thanks again for the ideas. I'll let you all know how it turns out.

CF

[Canadian FIRE]

Well today I quit my job and accepted the new offer.

In the end I decided I want to be closer to my extended family and I am willing to give up a bit of cash for that. FIRE is important, but I also have to live in the now.

CF

[KB]

Glad you made a decision that's right for you.
Good luck with the move and the new job.

[laurence]

Same choice I made a couple years ago, I haven't looked back!

[Ed_The_Gypsy]

One up-side: They can't tax you for money you don't make!
(Unless you had stock options in Enron. )

Good luck to you.

Gypsy