New Opportunity, Need Advice

[wageslave23]

Right now I have a low stress, low workload remote job. I'm planning to reach medium/low FIRE number in two years. I may work an extra year or two after that if the job is still this easy. Like work 2-4 hrs a day and make six figures, easy.

A firm I worked for awhile ago is offering me a chance to buy a partner out. I would need to work for the partner for 2 years to learn the client's and honestly learn my profession more thoroughly because I've been just mailing it in for so long. But once I bought them out, I don't want to get into the details, but basically making triple what I currently make.

So it'll be commuting and working 8 hrs a day for 3 or 4 years in a more stressful atmosphere, then probably triple the compensation for double my current work but I'd have even more autonomy than I currently do. For context, I'm late 30s, married, and two very young kids. Stache goal is about $1.5 million plus a paid off house. My wife is currently planning to work occasionally part time as needed/wanted.

[Laura33]

What do you want to do?

What would you do with the extra $$$?

Is there anything other than the money that makes this new opportunity attractive?

What would you be giving up to take on the new job?

Do 2 and 3 outweigh 4?

IMO, you already have enough.  Ergo, you should not make this decision based on money.  You should jump only if the new opportunity gives you non-financial benefits that are compelling (like if your current job is boring as dirt and the new opportunity is scratching an itch you didn't even realize you had).

IOW, your income:hours ratio is currently exceptionally high, giving you both enough $$ to meet your goals in the very near future and enough free time to enjoy the heck out of yourself along the way.  The new job has a much lower ratio, so you'd be giving up a bunch of free time to make a bunch more money.  This is not a good deal, unless (1) you really really need the extra $$$, or (2) the new job offers some sort of other intangible benefit that isn't reflected in this ratio.

[MaybeBabyMustache]

Agree with Laura. It sounds like you are on a strong track without taking on this job, so I'd want something other than money to excite me, in order to offset the additional demand on myself & my family.

[joemandadman189]

Sounds like an accounting type job or other consulting work.

DW is a partner and she works a lot during busy times, a lot. like 80 hours a week.

usually there is equity involved with a partner buy out - so you would have to figure that in to your plans. often the company wants a commitment from you to work for a while and usually there is a sweet spot as far as time spent with company where the bigger money starts flowing in, when you see the gains from equity ownership.

if the hours worked will increase, that will impact your relationship with your spouse and kids - as in she will need to take on more household duties and child care. Make sure you factor that in, its often overlooked.

how close are you to your goal with the current job vs this new job?

[BicycleB]

Sounds like a great compliment to your previous work - or a sign that they're short on valid offers. Maybe they remember you brown bagging your lunch back in the day and you fit profile of "might have money"!

Either way, doesn't sound like it meets your needs. Lots of time input, long lockin period, kids will be a very different age by the time you draw some air.

To counter this view, can you articulate what the advantages would be to you in personal terms if you accepted their proposal?

***
Post your polite refusal on the Epic F-U thread (not you have an F-U feeling, but because you're the decider, and the money doesn't make you sell out.)

ETA: Turn the offer down, change your screen name to InCharge_AlmostFI

[Finances_With_Purpose]

What do you want to do?

What would you do with the extra $$$?

Is there anything other than the money that makes this new opportunity attractive?

What would you be giving up to take on the new job?

Do 2 and 3 outweigh 4?

IMO, you already have enough.  Ergo, you should not make this decision based on money.  You should jump only if the new opportunity gives you non-financial benefits that are compelling (like if your current job is boring as dirt and the new opportunity is scratching an itch you didn't even realize you had).

IOW, your income:hours ratio is currently exceptionally high, giving you both enough $$ to meet your goals in the very near future and enough free time to enjoy the heck out of yourself along the way.  The new job has a much lower ratio, so you'd be giving up a bunch of free time to make a bunch more money.  This is not a good deal, unless (1) you really really need the extra $$$, or (2) the new job offers some sort of other intangible benefit that isn't reflected in this ratio.

This.  She's spot on.  (Kudos @Laura33 ) 

I say this, too, FWIW, as someone who has turned down similar opportunities to work a lot more in order to significantly increase my income.  Like you, I WFH, and while I work more hours, the pay is good per hour. 

I have tons of flexibility and plenty of pay now, so why move?  It just didn't make sense for me to give those up, especially with young kids.  In fact, I went from a very good yet slightly less flexible job to this one, which is both more flexible and pays better.  And I turned down a number of things like what you're considering. 

Instead, I make way more per hour now, and with low stress.  I even have a little side gig that I can expand if I really wanted to blast away at extra income in my spare hours.  I couldn't imagine giving this up. 

It's hard to put a price on all of the extra little breaks and lunches I can do with the kids without interrupting work whatsoever.  And being there immediately once work is over, without any commute to make me frustrated at the world. 

You have a unique and fantastic situation, it sounds like, so I would be hesitant to make a jump from that into a ton of work.  Not least because you may find that it's quite an unfriendly adjustment to get back into all of that. 

I would also be more hesitant since the payoff of that other opportunity is years out there, versus what you have right now. 

Finally, I would consider whether you could just add on to what you're doing with some gig work or the like, if that's an option, rather than take the full leap.  Or buy out someone else without all of the other in-office commitments - I'm sure that partner isn't the only boomer around who's looking to retire. 

Then you still control it fully and can back out if you need to without the huge commitment. 

At any rate, I'm not saying never, but it would have to really be worth it to make that kind of leap. 

[cannotWAIT]

I'm like you but on a smaller scale. I make $75K working from home and it's basically a part-time job. I recently turned down an offer to return to my previous role at $140K because it would be twice as much work and in person. The thing is, you don't actually know how short your life is. This might be your last good year. How do you want to spend it?

[Ron Scott]

Right now I have a low stress, low workload remote job. I'm planning to reach medium/low FIRE number in two years. I may work an extra year or two after that if the job is still this easy. Like work 2-4 hrs a day and make six figures, easy.

A firm I worked for awhile ago is offering me a chance to buy a partner out. I would need to work for the partner for 2 years to learn the client's and honestly learn my profession more thoroughly because I've been just mailing it in for so long. But once I bought them out, I don't want to get into the details, but basically making triple what I currently make.

So it'll be commuting and working 8 hrs a day for 3 or 4 years in a more stressful atmosphere, then probably triple the compensation for double my current work but I'd have even more autonomy than I currently do. For context, I'm late 30s, married, and two very young kids. Stache goal is about $1.5 million plus a paid off house. My wife is currently planning to work occasionally part time as needed/wanted.

If your health is bad and working under pressure is detrimental, or if your style of dealing with stress would make family life really difficult then you should sit put.

If not—go for it! Give yourself a challenge and see where it takes you. See what you’re capable of.

[wageslave23]

Thanks everyone for the responses.  I wanted to add some more details and answer some questions...

1. My current job is not just a 2-4hr per day part time job, where I can get my 3 hrs done and then take the rest of the day off. I'm supposed to be working 8 hrs a day. So I check email for an hour, eat breakfast and spend some time with my family, then work for an hour or two, then go to the gym, then respond to emails for half an hour, take a nap, then check email for 15 minutes.  With the new job, in 4 or so years, once I'm settled I'd be able to truly work 5 or 6 hours and then take off for the afternoon.

2. While we are close to FIRE, I'd also use/appreciate an extra million for added security, my wife not needing to work at all, more vacations and extra fun money.

3. The benefit other than money would be that I would like the challenge of running my own company, I'm good at managing client relationships and employees.  After the initial 4 years, I would probably enjoy the new job more than my current job on an apples to apples basis...it's just getting to that point which I dread.

4. The equity is basically guaranteed within two years, there would be almost zero chance of them backing out (I would not be earning my pay over the next two year training program, it's strictly to make the buyout smooth and successful).

5. I've been guaranteed that I wouldn't need to work more than 40 hrs a week during the training period.

6. The equity is immediate at two years, my cash flow to me would be triple my current salary (I've already factored the loan payback into that figure)

7. I would not have a similar opportunity elsewhere.

8. I don't deal well with stress and/or working 8 hr day office jobs.

[Finances_With_Purpose]

...With the new job, in 4 or so years, once I'm settled I'd be able to truly work 5 or 6 hours and then take off for the afternoon.

2. While we are close to FIRE, I'd also use/appreciate an extra million for added security, my wife not needing to work at all, more vacations and extra fun money.

3. The benefit other than money would be that I would like the challenge of running my own company, I'm good at managing client relationships and employees.  After the initial 4 years, I would probably enjoy the new job more than my current job on an apples to apples basis...it's just getting to that point which I dread.

That's a reason to go for it (bolded), plus the financial upside. 

The added info was helpful. 

Your situation is so unique that it's hard for any of us to add much: only you know what the cost of that sort of time and hour commitment is worth to you (especially with young kids) versus a chance to land a great, well-paying, lower-stress gig that'll push you farther ahead faster. 

My only thought now: would you be able to not commute and get your flexibility back one day?  Or is this going to commit you to being at one particular location and one particular office?  If so, is that where you want to go long-term?  You're laying down four years to do it, so presumably you'll want to stick with it a while on the back end, which means you really want to like how your life is laid out in relation to that place (great commute, no office/school commuting issues, etc.).  At least consider that. 

[Gremlin]

One thing to think about is your own exit strategy if you go down the 'partner buy out' path.  If you're contemplating FIRE in four to six years, how do you practically do it when you're the partner?  Do you need to find someone to buy YOU out?  Train them? Would the 'value' be maintained if the client base is seeing effectively three partner-changes in five years?  Sometimes the path out of partnership can be as complex as the path to partnership...

[Chris Pascale]

I could see myself trying this, and telling others not to.

Q: Is your easy 6-figure job secure?
Q: Why are you getting this opp as opposed to someone's son, daughter, nephew, niece?
Q: Do you have proof of income in new opp?
Q: Does your buy out price adjust based on clients leaving the first 2 years?

[wageslave23]

I could see myself trying this, and telling others not to.

Q: Is your easy 6-figure job secure?
Q: Why are you getting this opp as opposed to someone's son, daughter, nephew, niece?
Q: Do you have proof of income in new opp?
Q: Does your buy out price adjust based on clients leaving the first 2 years?

Those are all good questions that I have considered.  I'm going to avoid answering them due to confidentiality, but for the sake of this thread let's just say all of the answers are favorable to me.  So it really does come down to comparing the two jobs.  My current job is secure but because I am not the owner, aspects of my job could change although I don't see that happening.

[wageslave23]

One thing to think about is your own exit strategy if you go down the 'partner buy out' path.  If you're contemplating FIRE in four to six years, how do you practically do it when you're the partner?  Do you need to find someone to buy YOU out?  Train them? Would the 'value' be maintained if the client base is seeing effectively three partner-changes in five years?  Sometimes the path out of partnership can be as complex as the path to partnership...

I would need/want to work for at least 10+ years to make it worth doing and because at that point it would be easy money.

[Chris Pascale]

I could see myself trying this, and telling others not to.

Q: Is your easy 6-figure job secure?
Q: Why are you getting this opp as opposed to someone's son, daughter, nephew, niece?
Q: Do you have proof of income in new opp?
Q: Does your buy out price adjust based on clients leaving the first 2 years?

Those are all good questions that I have considered.  I'm going to avoid answering them due to confidentiality, but for the sake of this thread let's just say all of the answers are favorable to me.  So it really does come down to comparing the two jobs.  My current job is secure but because I am not the owner, aspects of my job could change although I don't see that happening.

What would you advise your child? What would you advise your student? Your spouse?

[BicycleB]

@wageslave23, after the additional information you gave, both options sound pretty good.

With each of them having signficant advantages that the other does not, and the long term payoff of the buyout being high, it seems to boil down to facing a couple of medium-term sacrifice (several years of extra commitment/ work, some loss of time with kids that will never ever ever ever be gotten back!) for 3 long term benefits - more money, emotional payoff from meeting the challenge, higher work satisfaction after the sacrifice period.

Since both sides have at least one disadvantage that is primarily personal (kids, effort), from the outside it looks very much like an personal decision.

PS. I maintain my position that you need a new screen name. You're the captain of this ship! Captain Earnings Decider - CaptainEarnie for short! :)

[joemandadman189]

Thanks everyone for the responses.  I wanted to add some more details and answer some questions...

1. My current job is not just a 2-4hr per day part time job, where I can get my 3 hrs done and then take the rest of the day off. I'm supposed to be working 8 hrs a day. So I check email for an hour, eat breakfast and spend some time with my family, then work for an hour or two, then go to the gym, then respond to emails for half an hour, take a nap, then check email for 15 minutes.  With the new job, in 4 or so years, once I'm settled I'd be able to truly work 5 or 6 hours and then take off for the afternoon.

2. While we are close to FIRE, I'd also use/appreciate an extra million for added security, my wife not needing to work at all, more vacations and extra fun money.

3. The benefit other than money would be that I would like the challenge of running my own company, I'm good at managing client relationships and employees.  After the initial 4 years, I would probably enjoy the new job more than my current job on an apples to apples basis...it's just getting to that point which I dread.

4. The equity is basically guaranteed within two years, there would be almost zero chance of them backing out (I would not be earning my pay over the next two year training program, it's strictly to make the buyout smooth and successful).

5. I've been guaranteed that I wouldn't need to work more than 40 hrs a week during the training period.

6. The equity is immediate at two years, my cash flow to me would be triple my current salary (I've already factored the loan payback into that figure)

7. I would not have a similar opportunity elsewhere.

8. I don't deal well with stress and/or working 8 hr day office jobs.

These kinds of jobs are never just 40 hours a week. - i would think about the impacts of having to work more