ThankfulParticipantOctober 1, 2020 at 5:04 PMPost count: 244
My wife is blessed with two job offers. One is $110k with 15% annual bonus with max 6% 401k match. The other is $125k with no bonus and 3% max 401k match. Is that additional just under $3k in additional 401k match for the $110K worth more than the $125K offer?Jerry BeersParticipantOctober 1, 2020 at 5:07 PMPost count: 27
The bonus alone more than makes up the difference. The extra 3% match just makes it that much better.Leslie HarvathParticipantOctober 1, 2020 at 5:12 PMPost count: 280
Congratulations, Thankful! Maybe another question might be how much can you manage the 401K accounts? eg how easy is it to go to cash in a down market?
$110K + 15% bonus (+ $16,500) + 6% match (+ $6,600) = $133,100
vs. $125k + 3% match (+ $3,750) = $128,750
Doesn’t the $110K + bonus, etc. look better, or am I not seeing something?
David CParticipantOctober 1, 2020 at 5:17 PMPost count: 1
- This reply was modified 3 weeks, 1 day ago by Leslie Harvath.
Specifically, if the first job’s 401(k) match includes bonus she will be looking at 134,090. Option 2 she will be looking at 128,750. That’s more than a 5k difference.
I’d also look at both the jobs and ask which one she’d prefer/be happier working at. All the best.ThankfulParticipantOctober 1, 2020 at 5:20 PMPost count: 244
I really appreciate the feedback! The job title is better with the $125 and comes with stock options of something like $37k for chewy.com that vest in 4 years, the other is for Sartorius a medical device company. We use chewy, so also a discount, but chewy is 11 years old while Sartorius is a German company that was started in something like 1870.OostburgerParticipantOctober 1, 2020 at 5:21 PMPost count: 34
You would also have to take into account the extra taxes you would pay on the salary (as opposed to deferred compensation), and of course that depends on the tax bracket you are in and the state your reside in.Sean HymanModeratorOctober 1, 2020 at 5:22 PMPost count: 2846
Which one thrills her more and matches her skill set the best? Are the companies public? If so, you can see how solid they are and how well they may weather a recession.ThankfulParticipantOctober 1, 2020 at 5:26 PMPost count: 244
Chewy went public less than two years ago and is coming down from a massive spike. Sartorius in Germany and only otc here. She’s in HR so her skills transfer, both have good opportunity for advancement.ThankfulParticipantOctober 1, 2020 at 5:27 PMPost count: 244
Yes, tax advantages for sure with the $110 offer.Theresa OConnorParticipantOctober 1, 2020 at 5:31 PMPost count: 11
Chewy was already the winner from the numbers given, but now with stock options and product discount included, that widens the gap even more. But consider other benefits offered – is there a Flex Spending account? Are vacation and sick leave comparable? Commute times? Perhaps more important though than all this number crunching is what Sean said – which one calls her? sparks more joy?Sean HymanKeymasterOctober 1, 2020 at 6:12 PMPost count: 3807
Yeah, I’d say, which excites her more? Which does she feel more of a drawing to? Which can she see herself in more? Does one give her a better quality of life, like shorter commute or working from home some, etc.?Sean HymanKeymasterOctober 1, 2020 at 6:17 PMPost count: 3807
Chewy carries very little cash and earnings losses. Something to consider. https://finance.yahoo.com/quote/CHWY/key-statistics?p=CHWY
Sartorius only has ho-hum financial strength but has been around a long time. https://www.gurufocus.com/stock/SARTF/summaryThankfulParticipantOctober 1, 2020 at 6:40 PMPost count: 244
Thank you guys SO MUCH!! Those Chewy financials did concern me, but the work atmosphere and opportunities and where she wants to go in her career is Chewy. I can’t thank you all for helping me get my head around this. She’s been interviewing for three years, always a bridesmaid never a bride, and now this.
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