Hi Money Minder,
I’ve been a contractor for a company for roughly 11 years; I’m a maintenance electrician. I’m 41, getting married this fall (its all paid for with cash- my future wife and I saved up- didn’t want to start at union with debt) making base salary of $76,400 ($82,000 with overtime). I currently have a 4% match on 401k, max out Roth every year, and started to fund a non-retirement investment portfolio. Between the 401k, Roth, and Investments I have $233,000 in the market, 6 months emergency funds cash, and $10,000 in an I-Bond. If it adds any context, I follow the money guys FOO (Financial Order of Operations and on step 7). Also, I’m a homeowner with a 3% interest rate until 2035, owing about $118,000 to date.
Now, I got invited to an interview for the company I’ve been contracting for. It offers another week’s vacation (currently have 2 weeks), matches up to 9% on 401k, and has an available HSA. The company recently announced that in 18 months, it will break up into 3 companies – for the maintenance guys, no one knows what will happen. At the end of the breakup, we could all be out of a job or not – working for the company directly or as a contractor. That’s the word on the site, but no one will know until the time comes.
If I accept the job offer, I can make a little more money without OT, or more with OT, better match on the 401k but have it set in my head that in 18 months, I’m looking for another job.
My thought is once I’m eligible for the 401k (60 days) and due to the company match (there is no vesting period – everything is yours as soon as you contribute), is to transfer 401ks and invest the company match (9% from me, 9% from the company) to get 18%. With my current company, I’m getting 17% with the match.
I’m trying to figure out the minimal acceptable wage for hourly salary (currently make $36.70/hr straight time, $55.08 Overtime) to where it’s worth jumping ship. Working the numbers, it’s $43/hr straight time ($89,440 gross). I’ll simply save the difference in my money market account when/if the worst-case scenario occurs and I’m out of employment in a year and a half.
I survived the recessions of ’01 and ’08 – older and a bit wiser. My future wife is part of the FIRE movement and set to retire in 2026 at 51; it’s a lot cheaper for both of us to get health insurance through my job. I’m tracking to retire at 67 with no high-interest/consumer debt other than monthly bills and the mortgage.
Edit: bad spelling.
Farewell,
Financially Focused
Response from THE MONEY MINDER:
Hello There,
Congratulations on your upcoming wedding and for being financially prepared for it! It sounds like you have a solid financial foundation in place with your current job and investment portfolio. Facing the uncertainty of your current company breaking up in 18 months can indeed be unsettling, but it’s great that you are already considering your options and planning ahead.
Given the potential changes in your current company’s structure, it’s wise to weigh the pros and cons of accepting the new job offer. The increased 401k match and availability of an HSA are definite perks, especially considering your future retirement plans. It seems like you have put a lot of thought into the financial implications of switching jobs, and your calculation of the minimum acceptable hourly wage to make it worth it is a practical approach.
Considering your age, financial goals, and the potential changes in your current workplace, it would be advisable to prioritize financial stability and security in your decision-making process. In the face of uncertainty, having a solid emergency fund, retirement savings, and a clear strategy for the future will be key.
Ultimately, only you can weigh the risks and rewards of accepting the new job offer. Ensure that you take into account not only the potential financial gains but also the stability and future prospects of the new position. It’s essential to make a well-informed decision that aligns with your long-term financial goals and overall well-being.
Remember, financial planning is about balancing risks and rewards, being prepared for unforeseen circumstances, and staying focused on your long-term objectives. Best of luck with your decision-making process, and may you find the path that leads to financial success and security.
Farewell from THE MONEY MINDER.
