Author Topic: Relocation Scenario  (Read 11391 times)

linuxology

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Relocation Scenario
« on: January 08, 2013, 08:53:06 PM »
I have been designated a hi potential employee by the organization that I work for. They are attempting to relocate me to a new role within the organization. Nothing is set in stone yet, but it has been playing on my mind. I have two kids and a wife. Ages are 31 (me), 28, 4, 2. No debt.

Advantages
New Role and Opportunity
More Money for my personal salary (though unknown at this time for the amount)

Disadvantages
-Saving Rate would more than likely decrease
-Wife Quit Job and stay unemployed until we get settled and she gets recertified (~40k loss)
-Real-Estate Costs (Cost of living would be much higher)(My mortgage is paid off)
-Traffic
-Moving (lol)

Again many things are still working themselves out, but would like to get any knowledge and wisdom. My present job is not in danger, but have been encouraged to relocate.
-My current job is dead end and I have maximized my role unless my boss quits
-The current company is a good one and <2% of the division I am in get nominated so I would think it is genuine.
-My current location is a poor one for future jobs not much competition. Any new location would be a better one.
-We would be much further away from family and is a factor with my wife, though she supports me 100%
-My current skill set provides me great job mobility
-New area would have more employers
-Based on research and option the New real estate areas would be much more expensive (more than likely would rent until more firm in understanding in long term aspects)
-Contingency plan would be to find another job or get out the new area if things don't work out
-More than likely new areas would require us to fly to visit family
- My previous roles have been more technical in nature and they are wanting to move me to a more managerial role (career progression that I am ready for)
-Employer naturally pays move

I am conservative and want to make the correct decision. I understand I have new opportunities, but want them to make financial sense. I understand it is a risk and many things have not played out yet. Thanks for all of the comments.


JJ

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Re: Relocation Scenario
« Reply #1 on: January 08, 2013, 11:06:44 PM »
This is a hard question to answer without a lot of facts (I know you have already documented a lot of them).  Here are some more considerations:
- Do you consider yourself "a career guy"? [Personally I'm not]
- Are you close to FI already, and will you retire early when you reach that?
- Are there other good companies in your area where you can get a career progression?
- Do you want to feel the "wind in your hair" from moving to a new area? [yes - some people like relocating believe it or not and it seems exciting]

You are basically trading a short term financial hit for career progression, and possibly a longer term financial benefit.  However, if that longer term benefit will never manifest (because you are retiring soon) then there seems to be little point in all the disruption of a relo.

There are lots of relo costs which are hidden. You have called out a few around wife's salary, no more extended family to babysit for free etc, but silly things like changing furniture because yours doesn't fit into the new place, going out more for the first few months to make connections in a new town, replacing the tins of paint brush cleaner you had to give away because they are flammable and removalists won't take them etc all add up.  You can certainly use the "hard costs" - wife's salary, housing cost change etc as leverage to get an attractive relocation package (I've been on the other side of that negotiation a number of times over the last 6 months), but it will probably come with strings (e.g. pay back 50% of the costs if you leave before 18 months).

One really good thing about moving to a new town for a while is you can break away from old family habits/thinking patterns.

I've lived in 18-19 houses (lost count) in around 12 cities (again, lost count) and 4 countries.  I would hate to do it with kids (although your kids are young enough to move without much pain) and some of the moves have delivered depressingly little value overall.

If you will be working for a few years maybe do the maths.  The salary difference between a skilled technical role and a middle manager role is often surprisingly little for all the extra headaches and grey hairs.  Senior & executive management is a totally different story - but if you are an MMM reader I can't see you hanging in long enough to get there.

In summary, I really think you have to be honest about how much career progression means to you personally - think hard about how much it will really improve your life and then consider a potential move with that perspective.

HTH

DoubleDown

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Re: Relocation Scenario
« Reply #2 on: January 09, 2013, 10:53:48 AM »
Based just on the description provided, I see very few, if any, advantages in moving to take a new position, in exchange for a much higher cost of living, lower savings rate, losing your wife's job and family in the process, and worse quality of life as described (traffic, etc.). The only potential advantage stated (higher salary) is not even known. You could find "new roles and opportunities anywhere doing anything, so I don't consider that an advantage. While flattering and probably deserved in your case, being named a "high potential employee" with the added condition that you'll relocate should be viewed with a healthy degree of skepticism (i.e., possible flattery and promise of vague "opportunity" to get you to move).

If you're feeling at all like your current position is a dead end, then I would instead look for a 3rd option: Moving somewhere you WOULD want to move to, that would increase your employment prospects, quality of life, savings rate, etc. That is, consider employment opportunities elsewhere not tied to your current employer that give you all the things you want, with little or none of the things you don't want. Like my buddy always told me about extra job offers: Even if you don't need another job offer or opportunity, it's always better to have them than not. It just acts as leverage with your current employer.

tooqk4u22

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Re: Relocation Scenario
« Reply #3 on: January 09, 2013, 12:03:03 PM »
JJ brings up some good additional questions.

Another one would be - evaluate how much you make now compared to how much your estimated raise would be and compared to how much a high potential person in your company could make in a few years. If you are truly considered high potential and work for a large company then they are basically grooming you for better things and it would not be out of the ordinary for your income to potentially double or triple in a five year period. 

Don't be shortsigthed - sometimes you have to go back to move forward.  Increased skills, increases marketablility and you say you live in an area with few opportunities - ask yourself this, what would you do if you lost your job today?

Also, while it does not necessarily put your job at risk keep in mind that most often when you are offered, and encouraged to take, an opportunity like this and you pass on it then typically you are removed from the list for any future promotional opportunities - because they move on to grooming the next guy/gal who by the way may get your bosses job when he leaves. 

But as JJ said if your not a career/corporate person then I wouldn't do because you won't be happy, you won't have the mental timeframe, and you probably won't be successful.

Otherwise I would serisously consider it - very few people in this world are put in a position like this.  They should also pay for your move and possibly temporary housing for a couple of months. 

linuxology

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Re: Relocation Scenario
« Reply #4 on: January 09, 2013, 08:56:36 PM »
-A career guy?  Not sure what you mean, but if it is working then yes.  I have to pay the bills somehow and the only revenue I have are a working income.  I can see myself to continue to work for the corporation I work for.
-Not close to Financial independence.  Only income stream that is sizeable are our jobs.  Only 31 and have a long way to go for retirement
-Commited to my company at this time as if I left I would owe them money due to a contract.
-Wind in hair;  Not sure but moving is a pita.  Sorry

Guess it is too early at this time and need to see what will be put on the table.  This is a difficult situation and will need more information.  Possibly will revisit in the future.
« Last Edit: January 09, 2013, 09:06:57 PM by linuxology »

JJ

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Re: Relocation Scenario
« Reply #5 on: January 10, 2013, 07:56:11 PM »
-A career guy?  Not sure what you mean, but if it is working then yes.  I have to pay the bills somehow and the only revenue I have are a working income.  I can see myself to continue to work for the corporation I work for.
Career guy is someone who is interested in climbing the corporate ladder through middle management then into senior and executive management (typically).  You can work for a corporate for years without climbing the ladder (e.g. as a technical specialist)
Quote
-Not close to Financial independence.  Only income stream that is sizeable are our jobs.  Only 31 and have a long way to go for retirement
OK - you're working for a while so you would have more time to reap the rewards of a higher salary.  This makes it worth considering more.

Scandium

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Re: Relocation Scenario
« Reply #6 on: August 19, 2014, 06:53:46 AM »
Seems like you don't want to say, but it might be easier to get a feel for how "bad" the new place is if you'd say where it is.. Even if it's high COL it might be possible to increase your savings.

Personally I think family is overrated and I wouldn't worry about it. I live 4000 miles from mine and it's fine. Much easier to fly back ever few years than being stuck in a dead-end job with no other options around.