Author Topic: Quitting my job sanity check  (Read 3583 times)

druth

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Quitting my job sanity check
« on: August 15, 2016, 12:50:40 PM »
Please sanity check me.  I have been considering this for a couple weeks and I have the email drafted and ready to go.

Background.  My job is draining and monotonous.  I was doing okay with this until recently when I didn't get a raise I was promised due to an issue with HR.  (See: http://forum.mrmoneymustache.com/welcome-to-the-forum/is-job-hopping-mandatory/).  Something that stuck out to me was somebody that basically said "Your managers just admitted that you are worth more than they can pay you."  In addition my team laid off more than half of the people with my job title in the last 6 months.  My job is completely safe, but while staff went down 50%, work only went down 25%.  I have been stressed and overworked for months.

I'm looking to get into contracting, which I think will care less about any resume gaps.  I had somebody in my field (a friends dad) look at my resume and he said it was very strong and he would be happy to forward it to some of his friends.  My dad is also in an adjacent field and would do the same.  I put my resume up online yesterday and had three headhunters contact me today.  One for a consulting role, and two for contracts.  One contract was too far away, but I did an initial phone screen with the other two and they are moving me ahead to talk to their clients.  My boyfriends company also has an opening that they are planning for.  They recently emailed to say "We are finalizing some other roles at the moment, but XXX asked that I check in with you and let you know we are still interested in your background. We are in the position where a few of these more senior roles must be filled first. "

Long story short, it seems like I'm in demand and shouldn't worry about getting a new job too much.

Numbers:
I will have 2600 in the bank when I wrap up, and 11k in easy to access savings, and another 24k in my 401k.

My monthly spending is $2400
My boyfriend pays me $675 in rent
I will make 4k this year from coaching speech/debate, so $333/month average.  Part of this will be three monthly payments of $600/month starting in September, so it will be somewhat loaded towards when I need it.
I make $400/month from tutoring. I could probably increase this, I have already turned down people due to not having enough time, and once coaching starts I will be able to get more kids from my teams as well probably.  Of course it could go down, but I don't expect this.
My health insurance costs will remain similar as I can be a 'domestic partner' on my boyfriends insurance.

Comes out to monthly outflow of ~1k, with me needing to take on only 8 more hours of tutoring a week to mitigate that.

The old advice is to never quit when you don't have something lined up, but I kind of just want a vacation and to get away from my current position.  What am I not thinking of?  Also, is contracting all it's cracked up to be?
« Last Edit: August 15, 2016, 12:58:03 PM by druth »

plog

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Re: Quitting my job sanity check
« Reply #1 on: August 15, 2016, 01:00:52 PM »
Quote
My health insurance costs will remain similar as I can be a 'domestic partner' on my boyfriends insurance.

Can you do that immediately?  Usually adding someone is only available during open enrollment or upon a special event (marriage, birth). 

Quote
Also, is contracting all it's cracked up to be?

That's like asking--is food good?  Well, it depends.  Depends on your industry, on the company you contract for, the contract itself, etc.  There's good in bad in everything.  Contracting itself means nothing.  It's just the meta-structure of a job.   

druth

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Re: Quitting my job sanity check
« Reply #2 on: August 15, 2016, 01:19:52 PM »
Quote
My health insurance costs will remain similar as I can be a 'domestic partner' on my boyfriends insurance.

Can you do that immediately?  Usually adding someone is only available during open enrollment or upon a special event (marriage, birth). 

Quote
Also, is contracting all it's cracked up to be?

That's like asking--is food good?  Well, it depends.  Depends on your industry, on the company you contract for, the contract itself, etc.  There's good in bad in everything.  Contracting itself means nothing.  It's just the meta-structure of a job.   

I think job change counts as a special event.

As for contracting I guess I'm just looking for first hand opinions.  I would really like the on/off sort of job structure, and the changing roles.  I get pretty bored of a job after a while, so having contracts less than two years and then taking a few months vacation sounds awesome to me.  I'm great at saving/money management, so that seems to cover the possible downsides.

mskyle

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Re: Quitting my job sanity check
« Reply #3 on: August 15, 2016, 01:38:55 PM »
Quote
My health insurance costs will remain similar as I can be a 'domestic partner' on my boyfriends insurance.

Can you do that immediately?  Usually adding someone is only available during open enrollment or upon a special event (marriage, birth). 

Quote
Also, is contracting all it's cracked up to be?

That's like asking--is food good?  Well, it depends.  Depends on your industry, on the company you contract for, the contract itself, etc.  There's good in bad in everything.  Contracting itself means nothing.  It's just the meta-structure of a job.   

I think job change counts as a special event.

As for contracting I guess I'm just looking for first hand opinions.  I would really like the on/off sort of job structure, and the changing roles.  I get pretty bored of a job after a while, so having contracts less than two years and then taking a few months vacation sounds awesome to me.  I'm great at saving/money management, so that seems to cover the possible downsides.

Be super careful about the insurance thing - I am pretty sure if you're not married your quitting is not going to count as a special event for purposes of your boyfriend's insurance. Get your boyfriend to ask a reliable person in charge of benefits at his company.

Also, your boyfriend will need to pay taxes on the amount of your insurance, because that's additional compensation - again, if you were married or he could claim you as a dependent, this would not be the case, but for domestic partner it still applies. A coworker of mine got burned on this years ago when she put her wife (married in Massachusetts) on her insurance but since their marriage was not recognized at the federal level she ended up owing a ton of tax (and the benefits department screwed it all up royally).

druth

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Re: Quitting my job sanity check
« Reply #4 on: August 15, 2016, 01:42:35 PM »
Be super careful about the insurance thing - I am pretty sure if you're not married your quitting is not going to count as a special event for purposes of your boyfriend's insurance. Get your boyfriend to ask a reliable person in charge of benefits at his company.

Also, your boyfriend will need to pay taxes on the amount of your insurance, because that's additional compensation - again, if you were married or he could claim you as a dependent, this would not be the case, but for domestic partner it still applies. A coworker of mine got burned on this years ago when she put her wife (married in Massachusetts) on her insurance but since their marriage was not recognized at the federal level she ended up owing a ton of tax (and the benefits department screwed it all up royally).

Good call, he asked his HR but that person is out of the office today.  Maybe I'll wait until I have that confirmed.  On the other hand it would be 200$ for me to pay COBRA, which I think is still do-able.

mskyle

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Re: Quitting my job sanity check
« Reply #5 on: August 15, 2016, 01:48:20 PM »
Be super careful about the insurance thing - I am pretty sure if you're not married your quitting is not going to count as a special event for purposes of your boyfriend's insurance. Get your boyfriend to ask a reliable person in charge of benefits at his company.

Also, your boyfriend will need to pay taxes on the amount of your insurance, because that's additional compensation - again, if you were married or he could claim you as a dependent, this would not be the case, but for domestic partner it still applies. A coworker of mine got burned on this years ago when she put her wife (married in Massachusetts) on her insurance but since their marriage was not recognized at the federal level she ended up owing a ton of tax (and the benefits department screwed it all up royally).

Good call, he asked his HR but that person is out of the office today.  Maybe I'll wait until I have that confirmed.  On the other hand it would be 200$ for me to pay COBRA, which I think is still do-able.

Really, only $200 for COBRA? That's very very low, more like what I would expect the "employee contribution" portion to be rather than the full amount. Regardless, though, the insurance thing doesn't have to be a dealbreaker - you should be able to get a plan on an exchange, maybe even with subsidies if your income is low. But it's good to know the numbers for sure before you make a decision.

druth

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Re: Quitting my job sanity check
« Reply #6 on: August 15, 2016, 02:00:59 PM »
Be super careful about the insurance thing - I am pretty sure if you're not married your quitting is not going to count as a special event for purposes of your boyfriend's insurance. Get your boyfriend to ask a reliable person in charge of benefits at his company.

Also, your boyfriend will need to pay taxes on the amount of your insurance, because that's additional compensation - again, if you were married or he could claim you as a dependent, this would not be the case, but for domestic partner it still applies. A coworker of mine got burned on this years ago when she put her wife (married in Massachusetts) on her insurance but since their marriage was not recognized at the federal level she ended up owing a ton of tax (and the benefits department screwed it all up royally).

Good call, he asked his HR but that person is out of the office today.  Maybe I'll wait until I have that confirmed.  On the other hand it would be 200$ for me to pay COBRA, which I think is still do-able.

Really, only $200 for COBRA? That's very very low, more like what I would expect the "employee contribution" portion to be rather than the full amount. Regardless, though, the insurance thing doesn't have to be a dealbreaker - you should be able to get a plan on an exchange, maybe even with subsidies if your income is low. But it's good to know the numbers for sure before you make a decision.

Keep in mind I have the HSA option.  I currently pay $25 bi-weekly, which is 25%.  So I think I'm right in saying my monthly COBRA would be a bit more than 25*2*4.  Also checked the exchange and definitely no subsidies for me but the cheapest plan is 250$.
« Last Edit: August 15, 2016, 02:05:48 PM by druth »

DoubleNickels

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Re: Quitting my job sanity check
« Reply #7 on: August 15, 2016, 02:14:31 PM »
COBRA is typically 102% of the total cost of your insurance. Not the portion you pay, but the portion your employer pays PLUS what you pay.   So,
 
1.02 x (Employee portion + Employer portion)

druth

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Re: Quitting my job sanity check
« Reply #8 on: August 15, 2016, 02:21:08 PM »
COBRA is typically 102% of the total cost of your insurance. Not the portion you pay, but the portion your employer pays PLUS what you pay.   So,
 
1.02 x (Employee portion + Employer portion)

So pretty close then.  1.02*(75+25)*2.17=221  (2.17 is for it being bi-weekly)

ReadySetMillionaire

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Re: Quitting my job sanity check
« Reply #9 on: August 15, 2016, 02:21:19 PM »
I personally would save at least three months expenses in cash before leaving your full time job. I recognize you have other sources of income and other types of savings, but what are going to do if your car breaks down or some other financial event happens?

I know work can be very stressful, but you're skating a fine and risky line by having such a low amount in savings.

druth

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Re: Quitting my job sanity check
« Reply #10 on: August 15, 2016, 02:29:07 PM »
I personally would save at least three months expenses in cash before leaving your full time job. I recognize you have other sources of income and other types of savings, but what are going to do if your car breaks down or some other financial event happens?

I know work can be very stressful, but you're skating a fine and risky line by having such a low amount in savings.

Yeah, that is my biggest concern.  Low cash reserves.  I have 2.5 months assuming everything goes what I'll call medium well.  Once that runs out it's "savings" which of course is a somewhat squishy word (isn't this what "savings" is for?), but avoiding tapping that would be preferable.

Of course my boyfriend could break up with me and I'd be out a roommate and possibly my health insurance subsidy.  He's 100% on board with me leaving though, and we've been together for 4 years, so I'm placing that as low risk. 

No car.  Pets could get sick, or a pipe could burst, but boyfriend could absorb that until I could pay him back (he has acknowledged this possibility), parents have also offered to help with these things before (actually somewhat incessently).

I feel a little bit like I'm finding the justification for the answer I want, but this is helping me to make sure I think of everything.
« Last Edit: August 15, 2016, 03:21:44 PM by druth »

mskyle

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Re: Quitting my job sanity check
« Reply #11 on: August 15, 2016, 02:38:31 PM »
Keep in mind I have the HSA option.  I currently pay $25 bi-weekly, which is 25%.  So I think I'm right in saying my monthly COBRA would be a bit more than 25*2*4.  Also checked the exchange and definitely no subsidies for me but the cheapest plan is 250$.

Makes sense then - I asked though because that is a pretty good deal on health insurance, even for a HDHP!

ReadySetMillionaire

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Re: Quitting my job sanity check
« Reply #12 on: August 15, 2016, 02:39:24 PM »
I personally would save at least three months expenses in cash before leaving your full time job. I recognize you have other sources of income and other types of savings, but what are going to do if your car breaks down or some other financial event happens?

I know work can be very stressful, but you're skating a fine and risky line by having such a low amount in savings.

Yeah, that is my biggest concern.  Low cash reserves.  I have 2.5 months assuming everything goes what I'll call medium well.  Once that runs out it's "savings" which of course is a somewhat squishy word (isn't this what "savings" is for?), but avoiding tapping that would be preferable.

Of course my boyfriend could break up with me and I'd be out a roommate and possibly my health insurance subsidy.  He's on board with me leaving though, and we've been together for 4 years, so I'm placing that as low risk. 

No car.  Pets could get sick, or a pipe could burst, but boyfriend could absorb that until I could pay him back (he has acknowledged this possibility), parents have also offered to help with these things before (actually somewhat incessently).

I feel a little bit like I'm finding the justification for the answer I want, but this is helping me to make sure I think of everything.

You'll know you're ready when you no longer have to come up with a bunch of justifications and rationalizations for your decision.

druth

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Re: Quitting my job sanity check
« Reply #13 on: August 15, 2016, 02:43:35 PM »
You'll know you're ready when you no longer have to come up with a bunch of justifications and rationalizations for your decision.

I know what you are getting at, but that seems like a great way to never try anything new or scary.  I'm definitely an over-thinker, so I would just keep dwelling forever.

druth

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Re: Quitting my job sanity check
« Reply #14 on: August 15, 2016, 02:44:55 PM »
I hit the send button.  My bosses are both out of the office right now, told them to call me with any questions.  Still open to things I haven't considered or any thoughts on going forward with finding a contracting job though.