What to do? Career Question? HELP!

[mintve]

OK, so here is the situation in a nutshell. I am in my early 30s and my FI and I will be married in TWO MONTHS

I am working in an industry I love for a well respected company. I''ve been w/ them for 4 years and the position I have, I like, and see it as a stepping stone to what I really want to do. Our plan was to have me work with this company until we have a baby...maybe, if all goes according to plan, the baby would arrive in about 2 years. This job is relatively stable (as much as it can be in today''s world). The pay is decent and the benefits (ie 401K, medical) are really good.

Here is the kink, my dream job came along! Its still in the same general industry, but its the kind of job I''ve been wanting for years. I would be doing what I want to do, gaining contacts and new experience and knowledge so that one day, I can possibly start by own business. The trick is that the job is a 1099 contract employee job. I would get a base salary (about 10-15% less than what I currently get). But the bonus and incentive plan is lucrative, but its obviously not guaranteed. Since its a 1099, there are no benefits...no 401K match, no insurance. My FI does not have a group plan at work, they get an allowance, so we''d have to get a plan on our own. Also, I''ve have to allocate my funds to pay my own taxes. This position may not be as stable since its a contract job, but its what I really want to do and it could lead to many great things down the road.

My FI is not sold on the 1099 new job. He kind of thinks I should hold on to what I have for the next tow years or until we have a baby. I am not sure what to do considering the state of the economy, but then also looking at my dreams and aspirations. Plus, all the new things I can learn and new contacts I can gain. Not to mention, this new job may be one that will be easier to do as a work from home mom.

I need some objective opinions...HELP!!

 

[Italiahaircolor]

It sounds like you really want this job...and I say go for it!

If you feel like this job could be a good fit for you, and you would feel secure accepting the position and can afford to make the new accomidations insurance-wise..then why not?

I've always found that if its a job I really want, I work harder at it and are more successful because of the extra effor. Stepping outside of whats possibly your comfort zone can be a motivator. And, you'll be gaining new job experience.

Congratulations, and best wishes!!!

 

[BlueSki231]

Date: 2/25/2009 10:01:00 AM
Author:mintve
OK, so here is the situation in a nutshell. I am in my early 30s and my FI and I will be married in TWO MONTHS


I am working in an industry I love for a well respected company. I''ve been w/ them for 4 years and the position I have, I like, and see it as a stepping stone to what I really want to do. Our plan was to have me work with this company until we have a baby...maybe, if all goes according to plan, the baby would arrive in about 2 years. This job is relatively stable (as much as it can be in today''s world). The pay is decent and the benefits (ie 401K, medical) are really good.


Here is the kink, my dream job came along! Its still in the same general industry, but its the kind of job I''ve been wanting for years. I would be doing what I want to do, gaining contacts and new experience and knowledge so that one day, I can possibly start by own business. The trick is that the job is a 1099 contract employee job. I would get a base salary (about 10-15% less than what I currently get). But the bonus and incentive plan is lucrative, but its obviously not guaranteed. Since its a 1099, there are no benefits...no 401K match, no insurance. My FI does not have a group plan at work, they get an allowance, so we''d have to get a plan on our own. Also, I''ve have to allocate my funds to pay my own taxes. This position may not be as stable since its a contract job, but its what I really want to do and it could lead to many great things down the road.


My FI is not sold on the 1099 new job. He kind of thinks I should hold on to what I have for the next tow years or until we have a baby. I am not sure what to do considering the state of the economy, but then also looking at my dreams and aspirations. Plus, all the new things I can learn and new contacts I can gain. Not to mention, this new job may be one that will be easier to do as a work from home mom.


I need some objective opinions...HELP!!

YES!!! I would do it - no doubt!

All I kept seeing in your post is that this is your dream and exactly what you''ve been waiting for - this is your chance!!

 

[EricaR]

I tend to agree with your husband. While it stinks to put your dreams on hold, sometimes you need to make personal sacrifices for the "greater good", for the stability of your family. We were in a similar situation two years ago, but the health care costs alone kept me in my current job. Have you looked into personal policies? For my FI and I it would have run $600/month, which alone would have made taking the new job financially prohibitive.

 

[fleur-de-lis]

Hearing the phrase "dream job" utters carries a lot of weight.

At the same time, the numbers geek would stress the importance of *really* crunching the numbers. There is a huge difference between being a W-2 employee with benefits in comparison to a 1099.
-- More complicated tax filings. (Not terrible, but either you''ll have to learn or have to hire someone, so be sure to account for this additional expense.)
-- Social Security withholding doubles, from around 7.5% to around 15%.
-- Individual health insurance is not only expensive, but typically the coverage is significantly poorer than group plans offered through an employer. Whether your spouse has coverage through an employer is a HUGE consideration, esp. if you are planning to be pregnant and have kids (whose health care needs can be unexpectedly large).
-- 401k matching is free money, so if your new job does not offer it, it needs to be considered in your financial evaluation.

In a nutshell, the new job''s base compensation is not 10-15% less; a tally might more accurately be -10 base, -7.5 extra SSN, -4 401k matching, and between $500-1000/month for health insurance premiums for a family. However, you mention bonus/incentive plans, and if it would be setting you up in a career that you could do while having a family (so your work could be continuous, in comparison to a job now you''d either have to quit or undertake expensive day care costs), it might be worth it.

Your fiance sounds very pragmatic to me; I personally might not put as much stock in things like "our plan was to have me work with this company until I have a baby", but I do put quite a bit in doing your homework and crunching the numbers to see just how big the cost/risk will be before you do anything rash. Do you have plans to buy a larger home in the next few years once you''re married with kids? Do you have the ample savings to cover uncovered medical bills? Will a paycut not cut into your ability to make ends meet? Is your fiance''s job stable enough to allow you to take greater risk? If the answers are yes, it might be a good time to take the leap. If not, you need to decide whether the changes you''ll have to make are worth it-- and in the end, that''s always a personal decision.

BTW, congrats on the big day being so close! Two months, eh?

 

[MichelleCarmen]

You like your current job, so stay with it unless after you number crunch you'd be coming out ahead.

Even if you technically can work from home after having a baby, you may still need to hire a sitter because your baby/child will distract you and make it harder to complete tasks on schedual. Not everyone is able to balance both. One of my friends worked from home when her baby was around six months old and constantly felt guilty because she felt as if she was ignoring her daughter. She had to do that, though, because she could not afford day care.

FWIW, I'm starting a contracted job and will be coming out ahead with that *in the short-run*. It's a 6-9 month contract and I've been out of the job market since my kids were born, so I'm willing to sacrifice 401K for anything that pays decent AFTER day care. I'll be working from home after a few months on the job OR can go in on the weekends and not have to pay as much for day care, but still, with my kids, I'll need them out of the house because they are loud. So, even with a contract, I'm stuck with high child care costs . . .$700/month during the school year, $1000 during summer!

For you, the next two years may be very important ones, financially. More contracting opportunities will come up in your future.