OMJ = One More Job Syndrome????

[Aiming_4_55]

So this last year has been pretty interesting as I shifted from full time employment to contract work (more pay, less stress - worked about 40 hours a week with some telecommuting and taking 3 weeks of vacation). At age 44, I reached FI based on a modest lifestyle in St Paul, MN with income producing rental properties.

Basically, my family’s annual expenses range from $55-60k (no mortgage or car payments) and I netted $60k rental income after all expenses/vacancies. This is my part time job as I perform most property management and minor maintenance/repairs, but hiring out major repairs.

Besides rental properties, other assets: primary residence is paid in full, $1.2M in savings, taxable investments, and retirement funds along with a small annual pension of 13k, non-cola, at age 55 and SS in the future. Two college funds with a fair amount saved (total currently $80-90k), but will continue to fund for a few more years to a target of $150k, while letting the market work some magic the next 10 - 12 years. The international travel fund can always use more $$ as DW and I are young and interested in more travel in the future. No debt at this time.

Here is my personal dilemma; a variation to OMY is my OMJ syndrome…. OMJ = One More Job. While I’ve enjoyed the contract job, I felt bored and not really challenged. I have a new opportunity in an area of technology (SaaS using cloud computing) that I’m excited to learn. The downside is the job is located in Los Angeles, CA, a much higher cost of living area. By renting out our primary residence, out of pocket CA rent would be no more than $24k/year, but the new salary would more than double the difference. DW is encouraging me to pursue the new opportunity. Kids are young enough to not be too impacted.

So, if I worked this position 2 – 3 years, I feel I would be in a better mindset to go back to contracting work with even more in demand skills or semi-FIRE by returning to MN or somewhere warmer.

In addition, I have another FTE job in Minneapolis that I’m also interested in and completed the 2nd round of interviews. Staying in MN would be the easier choice, but the winters seem to get longer each year I’m here.

Honestly, I can’t imagine not working at this time, so I just want to have a challenging gig for a few more years. CA offers an opportunity to explore something new. What else should I be thinking about at this stage?

 

[daylatedollarshort]

What else should I be thinking about at this stage?

Leaving the snow and cold behind! I'd go for it.

 

[Aiming_4_55]

Leaving the snow and cold behind! I'd go for it.

It was a longer winter than normal in my eyes, so I welcome warmer weather. That was probably the reason I sent a few resumes out.

 

[daylatedollarshort]

It was a longer winter than normal in my eyes, so I welcome warmer weather. That was probably the reason I sent a few resumes out.

I sent my resumes out right after college.

 

[Aiming_4_55]

I sent my resumes out right after college.

I'm a slow learner, but once I catch on, I'm ok

 

[hausfrau]

Funny, I must be the only one who loves winter around here.

It seems like you have enough $ already to me, no? Personally, I can't stand LA (and I was on vacation!), but if you and your wife are excited by the idea, why not?

 

[Midpack]

Here is my personal dilemma; a variation to OMY is my OMJ syndrome…. OMJ = One More Job. While I’ve enjoyed the contract job, I felt bored and not really challenged. I have a new opportunity in an area of technology (SaaS using cloud computing) that I’m excited to learn. The downside is the job is located in Los Angeles, CA, a much higher cost of living area. By renting out our primary residence, out of pocket CA rent would be no more than $24k/year, but the new salary would more than double the difference. DW is encouraging me to pursue the new opportunity. Kids are young enough to not be too impacted.

In addition, I have another FTE job in Minneapolis that I’m also interested in and completed the 2nd round of interviews. Staying in MN would be the easier choice, but the winters seem to get longer each year I’m here.

Honestly, I can’t imagine not working at this time, so I just want to have a challenging gig for a few more years. CA offers an opportunity to explore something new. What else should I be thinking about at this stage?

What's the question Being FI is not a reason to retire by itself, retiring is just one of the options that comes with FI.

I've underlined the most telling remarks. You should take another job, you just need to decide which job & location fits your needs (and the family) best, maybe with some consideration given to where you want to retire when you do (LA, MN, other). And I'd assume the rental properties would be a consideration unless being a remote landlord is viable.

Having lived north and south, you choose your lesser evil - cold winters/pleasant summers or hot-humid summers/pleasant winters. However, temperature swings along the west coast are significantly more moderate than the rest of the US. I don't have an LA equivalent, but the average annual temperature in San Francisco is the same at St Louis, but there is no comparison! St Louis in Jul averages 90F, 71F in San Francisco, and St Louis in Jan averages 21F (with 17" of snow avg), 42F (and no snow) in San Francisco!!!

If I'd had another opportunity waiting that I was excited about, I would have jumped at the chance, instead of retiring. Best of luck, you have a "good problem."

Edit: It appears St Paul is just as hot as LA in summer (see below). Obviously winter is another matter, the sledding in LA is inferior.

 

[meekie]

To move to LA, it seems like you'd have to hire a property manager, rent a place in LA, and pay the difference in cost of living between here and there. Does the pay really make up for all of that?

Also, what part of LA? How close will you be to your job? Traffic in LA stinks, so you'd want to be really close, but some parts of LA are not too pleasant to live in.

 

[eridanus]

Think of it as an adventure.

I just did a year in a city 2000+ miles from my house. I found good tenants and moved everything in one of those pods. Rented a place downtown and my car was only used on the weekends. It was a lot of fun and I plan to repeat the experience.

 

[Aiming_4_55]

Funny, I must be the only one who loves winter around here.

It seems like you have enough $ already to me, no? Personally, I can't stand LA (and I was on vacation!), but if you and your wife are excited by the idea, why not?

"loves winter" is quite strong. I'm ok with Chicago winters, MN winters can be a coin toss. If I take this job, I'm ok to return one day after ER as I won't have to leave the house or drive in the snow if I don't have too vs. when working.

I don't think it's really a money thing for me, while being FI in MN and no so FI in CA is not the biggest issue. It's more of an experience/learning opportunity for me/us. It would be different if I was mentally ready to retire or pursue out ventures. Thanks for your feedback.

 

[Aiming_4_55]

What's the question Being FI is not a reason to retire by itself, retiring is just one of the options that comes with FI.

Agreed, FI does not require one to RE and does present options. The question, is or feedback is related to... why should one add stress to their life when an easy out (FI) is there? It's more of a rhetorical thing for me. I feel if I stay in MN, it's almost easy street for me/us, but I'm not really looking for that.
...

Edit: It appears St Paul is just as hot as LA in summer (see below). Obviously winter is another matter, the sledding in LA is inferior.

I guess I have to get rid of the ice skates!

Thank for your feedback.

 

[Aiming_4_55]

To move to LA, it seems like you'd have to hire a property manager, rent a place in LA, and pay the difference in cost of living between here and there. Does the pay really make up for all of that?

Also, what part of LA? How close will you be to your job? Traffic in LA stinks, so you'd want to be really close, but some parts of LA are not too pleasant to live in.

I agree, I would need to address property management in MN and that cost would be deducted from the current cash flow.

We haven't landed on a final base salary yet, but it is about $45k more than my current salary. I'm looking at a beach area within 30 minutes/10 miles from the office. I've found a few rentals that would meet the family's needs in $3-3.5k/month rent budget. Also, I estimate a net of $1.6 - 1.8k/month rent income from our current residence. Currently, I commute closer to an hour when I go into the office. So, one might believe this is a step up, net gain.

 

[Aiming_4_55]

Think of it as an adventure.

I just did a year in a city 2000+ miles from my house. I found good tenants and moved everything in one of those pods. Rented a place downtown and my car was only used on the weekends. It was a lot of fun and I plan to repeat the experience.

Eridanus - we are truly feeling that way. I want to frame it as, let's do the normal saving, i.e. max out 401k, HSA, kids college fund, more emergency fund, and a modest % for taxable savings/investing, but spend the rest from my base salary. I will still save bonus/stock options, etc. This behavior would be a major change of lifestyle as I normally saved closer to 50% of my pay check, never touch rental income unless it's another investment.

If we move, I already want to buy season passes to Disney and spoil the kids for the next 2 years. I think that will create a ton of childhood memories for the family. Also, road trips to San Diego and San Francisco. Oh, maybe an used convertible ;-) as I can justify using it more in CA vs. MN.

 

[daylatedollarshort]

If we move, I already want to buy season passes to Disney and spoil the kids for the next 2 years. I think that will create a ton of childhood memories for the family. Also, road trips to San Diego and San Francisco. Oh, maybe an used convertible ;-) as I can justify using it more in CA vs. MN.

When our kids were little we always had some sort of combination of annual passes for Disneyland, Six Flags, water parks, state parks and assorted reciprocal museum passes. It was great fun and relatively frugal entertainment.

 

[nwsteve]

I agree, I would need to address property management in MN and that cost would be deducted from the current cash flow.

We haven't landed on a final base salary yet, but it is about $45k more than my current salary. I'm looking at a beach area within 30 minutes/10 miles from the office. I've found a few rentals that would meet the family's needs in $3-3.5k/month rent budget. Also, I estimate a net of $1.6 - 1.8k/month rent income from our current residence. Currently, I commute closer to an hour when I go into the office. So, one might believe this is a step up, net gain.

For anyone moving to CA, land of what is yours is also the State's, be sure you fully understand the tax structure. For the duration you are considering, I would be concerned how much of my rental income would be subject to CA tax, not to mention their income tax is one of the stiffest in the country, particularly at the top end. Then once you do leave Calif, you will be dealing with making sure CA does not want to keep tapping your income for another year.
Nwsteve

 

[Aiming_4_55]

Ok, a brief update. FI is a thing of the past I believe ;-) I won't know my exact new annual expenses, but I accepted the job and relocated to Los Angeles. The family will be joining me shortly, but I've enjoyed it so far and looking forward to a new chapter. While I'm looking at this as a 3 - 5 year thing, it's ok to take one year at a time. Everything is subject to change =)

 

[daylatedollarshort]

Good luck! I hope you enjoy California and the new job.

 

[Aiming_4_55]

Old thread - job is going well for the first 9 months. Enjoying the exposure to other technologies and such with nice people for the most part. Only negatives, too many opportunities for overtime and traffic. Result = not buying a primary residence, not convinced I want this for the long term.... but 80 degrees today at the beach with the family. Just need more beach days.

 

[Meadbh]

Thanks for the update. You picked a good winter to avoid!

 

[daylatedollarshort]

but 80 degrees today at the beach with the family. Just need more beach days.

Thanks for the update.

I hear if you are going to school in Southern California with your parents supporting you and have enough free time for lots of beach days it is like living in paradise.