Need help figuring out best course to take financially...

[Helene]

First, a little background.

I'd always been a FT employee but went PT in Nov05 to open up my own Private Practice. Prior to this venture, I was putting 15% into my 401K and contributed weekly to my children's college savings accounts (DD 8, DS 7).

DH is self-employed. When I went PT, we had to start paying for health insurance out of pocket. Essentially, what was once retirement/college savings, is now eaten up by healthcare costs.

Although we're making it, it pains me every month to pay out $$ for something we rarely use yet can't live without. I HATE the fact that I've been unable to save any $$ in the last nine months.

Now my question...I am seriously considering returning to FT employment and have an opportunity with a new employer. However, I am not fully vested in my current employment and would lose about $7000 if I left before January. When I ran the numbers, that translates to $65,859 assuming 9% return over the next 25 years.

Would you stick it out another 6 months of getting by till becoming fully vested, or take advantage of the opportunity being offered.??

Helene

 

[nbodyhome]

You'd make more money AND have health insurance and such paid for - so in the end, you'd not lose so much.

If you like the new job offer, take it - even if you lost some money. You sound like you are well ahead of a lot of other people to begin with.

 

[vanyel]

Will your new job pay enough to be able to make up that lost $7000, also taking into consideration that you won't be paying out of pocket a large health care insurance premium? $7000 doesn't seem that much to lose, comparatively but I don't know your personal situation. (I don't mean it isn't a lot of money but when you weigh the raise in salary and not having to pay insurance it doesn't seem as much).

 

[PrincessDadx2]

Tell your new employer that you would love to start, but need a $7,000 signing bonus to offset the money you are giving up by switching jobs. Happens all the time and the worst they can say is no. If they really want you they will say yes and you will have no loss.

 

[disneysteve]

Based on the info given, I'd go for the new FT position. Higher salary and better benefits, including healthcare, will be worth far more in the long run than that $7,000.

 

[dzorn]

Even though you are not vested you would still get any money you contributed, you would not get the company match. I was not sure if you took that into consideration.

Denise

 

[Helene]

Thanks to all who replied.

After reading the replies and doing some math, I figure at a minimum I would break even over the course of 6 months, I may likely come out ahead.

When I posted, I was coming off a bad night of sleep and this issue was the reason. In the light of day and with validation from all of you, it can make sense for me to move on and accept the new position.

I still have other factors to consider (increased travel time & gas$$), but at least this is one factor I'm clearer on.

Thanks again for your feedback!!

Helene

 

[Helene]

Tell your new employer that you would love to start, but need a $7,000 signing bonus to offset the money you are giving up by switching jobs. Happens all the time and the worst they can say is no. If they really want you they will say yes and you will have no loss.

I had to respond to this one because it is the one thing I've heard in the last week that brought a huge smile to my face

I am a Clinical Social Worker and have always worked in the non-profit sector. For those of us on the clinical end of the business and not the management side, this type of negotiation power is almost unheard of. The best I've been able to do is around the issue of benefits (ie, max vacation allowance/healthcare from day 1).

I have not seen a raise in 4 years and that was the key reason I decided to venture out on my own. My employment was safe but it was also stagnent. Being on my own is much more profitable from a standpoint of hourly rate, but paying for the health insurance is a real killer. I realize now that my private practice earnings will be a great way to generate extra $$, but until I can give it more time to build, it's back to the world of Full-Time employment for me

Someday I may venture into the "real" business world where those situations are common, but I'm so used to hearing "There's no money in the budget", I accept it as reality

Thanks for posting. I am sincere when I say you brought a smile to my face.

Helene

 

[tinaluis]

Helene,
That made me chuckle too. I really don't see that playing out too well in the "real world". Good luck to you on your decision. I know it's a hard one.