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Re: Plan analysis, please...
Old 02-04-2007, 11:33 AM   #21
Recycles dryer sheets
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Re: Plan analysis, please...

I'm not any financial analyst/expert, but what I find uncomfortable in your situation is your 50K debt and 100K mortgage without any mention of an emergency fund.

I could not possibly feel safe leaving a high-paying job with a 50K debt, and without at least 6 months of accessible savings.

You sound pressured, and I think that you are at risk of making an impulsive mistake. Totally understandable, but nevertheless, a potentially big mistake.

Take time off to decompress. Pay off that debt. I think an HEL is just as bad as the original debt. It doesn't really get you out of that hole, does it? Get 6 months of expenses saved up. By all means, tough it out for that bonus. Then, re-assess the situation. I would NOT discuss leaving with anyone until you have gotten your feet underneath you. I would not want to give anyone advance notice if there is any chance they will make me redundant, not on my own shedule or timetable.

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Re: Plan analysis, please...
Old 02-04-2007, 12:51 PM   #22
Give me a museum and I'll fill it. (Picasso)
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Join Date: Jun 2005
Posts: 7,662
Re: Plan analysis, please...

"Start new 401(k)" can be problematic.

My spouse was considering changing jobs in December 2006. Her prospective new employer would not make her eligible for their 401(k) until a year of employment. She will put $20,500 into her current 401(k) this year. If she became ineligible for that by moving to a new company it would cost her about $7,000 in taxes. I suggested that if she move she get a signing bonus to cover the extra $7K plus the taxes on the $7K or about a $10K signing bonus. Or they could just change their 401(k) plan to allow folks to enroll right away. Anyways, no signing bonus was forthcoming, so onto Plan B:

Another way around it, would be to work for current employer for the first 3 months of 2007 and put 90% of income into 401(k) maxing it for the year. Then consider changing employers.

So you have a dilemma: you need to stop contributing to the 401(k) to bank usable cash and you need to max out 401(k) before you quit.

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Re: Plan analysis, please...
Old 02-04-2007, 01:35 PM   #23
Dryer sheet wannabe
Join Date: Mar 2006
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Re: Plan analysis, please...

Yep...That Megacorp. Once a great place to work, now a hollow shell of political BS - like vultures on a cadaver....But - hey - no bitterness!

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