Author Topic: Which job to pick?  (Read 902 times)

Mgmny

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Which job to pick?
« on: July 20, 2019, 12:30:34 AM »
Today was my last day at my job, because I put my 2 week notice in 2 weeks ago. I received a job offer for a "12+ month" contract position for $64 an hour.

Today however, I also received a job offer from another company for FTE that was for $90,000. At the job i left today, I was making 92,500.

Which job should I take?  At first glance, the $65/ hour is MUCH more money, but maybe not as much as it looks up front

Contract
$65/hour = $122,880 once I take out 10 holidays and 15 vacation days in a year
Commute is 33 miles each way, ~60 minutes in traffic
Medical will be $460/month for family of 3
No 401k match
12 month with possible extension, no guarantees

FTE
$90,000
4% 401k match ($3600 annually)
10 miles, 15 minutes in traffic
Fast Growing company
Super relaxed work environment (t shirts, flip flops, remote working whenever)
Unlimited PTO (could be good or bad....)
$250 for medical per month
$1500 hsa match

Roles are very similar.


When I do the math, the contract position still comes out on top, but not by the full $30k it looks like at face value...

First, the extra $32,880 would be taxed at 24% federal and 8% Minnesota, so it's really only ~$23,000 if you consider taxes.

Second, mileage would be 160 extra miles per week on my car (I'm assuming 1 remote day at contract per week and not counting any remote at FTE to be conservative), which is ~$80 per week or  $4000 per year

So 113000 - 1500 (HSA) - 2400 (medical) - 3600 (401k) - 4000 (mileage)  = $101,500

So the difference would be $11,500 after taxes - or nearly $1000 a month.

That is a lot of money to be leaving on the table, but is it with the huge commute time saver? The FTE "security" vs contracting? How much is a flexible work environment or unlimited PTO worth?

Please help!

happy

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Re: Which job to pick?
« Reply #1 on: July 20, 2019, 01:58:02 AM »
Its totally a personal decision. How hard are you pushing for FIRE? and  How likely are you to land another contract or job in 12 or so when this runs out?  Do you have some FU money and would enjoy a short break if you couldn't keep work running back to back? Are you willing to commute further and have a more formal work environment for the extra 11k a year?

From a quality of life point of view job no 2 looks much better: it all depends on how hard you want to push for the extra money.

Would it be in order for you to tell job no 2 you have another contract offer and could they offer you a little more to make the decision easier?

Mgmny

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Re: Which job to pick?
« Reply #2 on: July 20, 2019, 06:04:05 AM »
Would it be in order for you to tell job no 2 you have another contract offer and could they offer you a little more to make the decision easier?

Yeah tried this. They are well aware of the other offer. They told me that the position was only budgeted Up to 85, and it was really tough to get the extra 5...

Omy

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Re: Which job to pick?
« Reply #3 on: July 20, 2019, 06:14:49 AM »
You will also be paying self employment tax if you take the 1099 job. I believe that takes another 8% so it might really be a wash. I'd probably go with the shorter commute all things being equal.

Mgmny

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Re: Which job to pick?
« Reply #4 on: July 20, 2019, 06:31:18 AM »
You will also be paying self employment tax if you take the 1099 job. I believe that takes another 8% so it might really be a wash. I'd probably go with the shorter commute all things being equal.

Oops sorry, it's W2 consulting, so no 1099, should have clarified.

BikeFanatic

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Re: Which job to pick?
« Reply #5 on: July 20, 2019, 06:47:26 AM »
1000 more is a lot but I think I would have taken the lower stress job with the shorter commute. Maybe you could bike or get a moped for the nice days. If I was very close to fire and only needed another year then I might suck it up and go for the longer commute. It is OK in my book to leave money on the table, lifestyle is very important and time commuting in a car n traffic to me is not worth it.

Brother Esau

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Re: Which job to pick?
« Reply #6 on: July 20, 2019, 07:43:53 AM »
Not sure if either job is better for "building your resume" at your age but my 2 cents would be to factor in quality of life things. commute time, time at work, stress, deadlines....

It's not always about maxing out the $$.

Rdy2Fire

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Re: Which job to pick?
« Reply #7 on: July 20, 2019, 08:01:11 AM »
In my past I have done both FTE and consulting.. Consulting you can write a lot of things off although I don't know the tax laws around this now. However time is money and I would NEVER go back to a commute so I think I'd take the FTE gig

I know you said they already came up in salary but is there any kind of bonus? I am not sure what kind of job it is but maybe you can ask them about that or some kind of MBO's to get you some more $$.

TomTX

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Re: Which job to pick?
« Reply #8 on: July 20, 2019, 09:37:35 AM »
Bleah. So, 10 hours a week commuting vs 2.5 hrs. Figure 50 weeks/year, that's 375 hours.

Nothing else you could do with 375 hours?

Mgmny

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Re: Which job to pick?
« Reply #9 on: July 20, 2019, 11:35:23 AM »
In my past I have done both FTE and consulting.. Consulting you can write a lot of things off although I don't know the tax laws around this now. However time is money and I would NEVER go back to a commute so I think I'd take the FTE gig

I know you said they already came up in salary but is there any kind of bonus? I am not sure what kind of job it is but maybe you can ask them about that or some kind of MBO's to get you some more $$.

This is W2 "consulting" /contracting so no write-offs, unfortunately.

I asked about bonuses and profit sharing and was told only directors and above get them.

Mgmny

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Re: Which job to pick?
« Reply #10 on: July 20, 2019, 11:36:14 AM »
Bleah. So, 10 hours a week commuting vs 2.5 hrs. Figure 50 weeks/year, that's 375 hours.

Nothing else you could do with 375 hours?

I want to agree with you.... But there's so many dollar signs in the way... Maybe I'm missing the point though.

TomTX

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Re: Which job to pick?
« Reply #11 on: July 20, 2019, 11:41:37 AM »
Bleah. So, 10 hours a week commuting vs 2.5 hrs. Figure 50 weeks/year, that's 375 hours.

Nothing else you could do with 375 hours?

I want to agree with you.... But there's so many dollar signs in the way... Maybe I'm missing the point though.

Based on your numbers, effectively you're being paid ~$30/hr to commute, if the work time is effectively equal between the jobs.

Omy

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Re: Which job to pick?
« Reply #12 on: July 20, 2019, 12:06:36 PM »
What value do you put on "unlimited PTO" and "remote working whenever" and no clothing expense?

lhamo

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Re: Which job to pick?
« Reply #13 on: July 20, 2019, 12:09:33 PM »
No way I would sign up for a 2 hour daily commute.  That shit sucks the life out of you FAST....

BicycleB

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Re: Which job to pick?
« Reply #14 on: July 20, 2019, 12:19:31 PM »
Agreeing with the remarks that it depends on your FIRE pace and that you make about $30/hour after tax for your commute time. Leaning toward no commute, permanent job (to the extent they exist), better environment, growing company! Your decision though.

$92k implies about $46/hour. I guess in your state, marginal income about $31/hour. So driving pays the same as working. Would you rather drive or work?

Is your savings rate satisfactory in the 92k job? If so, why waste time driving?

If both jobs are good ones for you, the "permanent" one presumably locks in the goodness for a longer period. Would that be helpful to you?

Mgmny

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Re: Which job to pick?
« Reply #15 on: July 20, 2019, 09:24:49 PM »
What value do you put on "unlimited PTO" and "remote working whenever" and no clothing expense?

That's what I don't know!!

Mgmny

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Re: Which job to pick?
« Reply #16 on: July 20, 2019, 09:34:59 PM »
Agreeing with the remarks that it depends on your FIRE pace and that you make about $30/hour after tax for your commute time. Leaning toward no commute, permanent job (to the extent they exist), better environment, growing company! Your decision though.

$92k implies about $46/hour. I guess in your state, marginal income about $31/hour. So driving pays the same as working. Would you rather drive or work?

Is your savings rate satisfactory in the 92k job? If so, why waste time driving?

If both jobs are good ones for you, the "permanent" one presumably locks in the goodness for a longer period. Would that be helpful to you?

I think I'll still be putting away 19k for 401k and max out HSA, (and $2400 for 529). My wife is maxing out 401k too, but that will likely end in the next 18 months when she transitions to SAHM.

We have a +NW of about $410k at 28 and 25 ages, so it's we're doing really well.

Mgmny

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Re: Which job to pick?
« Reply #17 on: July 20, 2019, 09:36:00 PM »
Bleah. So, 10 hours a week commuting vs 2.5 hrs. Figure 50 weeks/year, that's 375 hours.

Nothing else you could do with 375 hours?

I want to agree with you.... But there's so many dollar signs in the way... Maybe I'm missing the point though.

Based on your numbers, effectively you're being paid ~$30/hr to commute, if the work time is effectively equal between the jobs.

Yeah, is that good or not?!?!

BicycleB

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Re: Which job to pick?
« Reply #18 on: July 21, 2019, 11:37:41 AM »

Based on your numbers, effectively you're being paid ~$30/hr to commute, if the work time is effectively equal between the jobs.

Yeah, is that good or not?!?!

If what you need from work is primarily money, it's good. If there is a realistic chance of not achieving FIRE, and this money would make a difference, it's very good.

If your saving is in shape, which it appears to be, then the money is nearly a non-issue. Overvaluing these particular dollars is a mistake, perhaps a terrible one. Your first fast years of accumulation have placed you in the MMM version of the Treat Yourself zone - the FU area where it is logical to make choices based on what you like. To design a lifestyle that nourishes your soul. Where you maximize Stuff (such as Activities) You Love and minimize Stuff You Don't.

What's really good is you have 2 excellent jobs available to continue your healthy accumulation towards FIRE: one with a $30/hour commute attached, and one without. Since they're almost identical in dollar terms except for this, you can decide purely based on whether you like driving, or prefer to do something else with your time. Assume you're going to reach FIRE, and that the decision you're making is whether you'd like to spend a couple hours a day driving back and forth for cash you don't need. Because that really is the likely outcome here. You're going to reach FIRE. You don't need the commute to get there. Your hours on earth are finite, whether you do this driving or not. Would you like to drive, or do something else? If there is anything at all in the world you'd rather do, I suggest doing that instead - and turning down the commute.

What's good is that you have such a safe choice to make already. Make the choice that delights you. It will be the first step into to the joy part of FIRE, instead of the accumulation slog. (Not saying that everyone must view the accumulation game as a slog. But you are so focused on the dollars, I fear that you might view it that way. Anyway, it's time to start making Joy choices when the circumstances permit. Such as now.)
« Last Edit: July 21, 2019, 11:48:09 AM by BicycleB »

Rubes33

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Re: Which job to pick?
« Reply #19 on: July 23, 2019, 02:47:51 PM »
FTE.. Get that guaranteed money