paying for security clearance is a wash item.... they require it, cost is actually for the investigation to grant the clearance, which is only good while you are at the company. if you get another job later that requires a clearance, they would use this investigation as a basis to grant it if within a certain time period, otherwise they would update the investigation. clearances are revoked when you leave the place that granted it.

you need to look at entire benefit package, not just difference in base salary, as well as all the other intangibles.

things like:

taxes - how much more in federal tax are you gonna pay, and is the other place state/local taxes higher or lower than here? for one thing, i hope it does not have this $!#&% VA property tax on cars!!! that will save you some cash.

health and dental coverage - i am military retired and am covered with its plan, so i get an extra $60 per 2 week payday for NOT using my current company plan

car allowance - i get $250 a month to use my car for local business travel, things like going to downtown DC customers, going to airport when flying to customers, class, etc. i also get to expense mileage and gas to non-local customers that are closer/quicker to drive to than wait in line for a plane. this helps may for regular maintenance, etc, and i really don't drive around much, so i look at it more as a gift.

phone/internet connection - since we do home office, sort of like maytag repairmen - sit at home waiting to get assigned to a customer contract instead of driving to a central office and stare at each other since there is nothing for us to do internally (computer networking consultant!!), i am required to have home phone, cell phone and internet (cable modem!) i get to expense everything but listed personal calls, i.e. the base price, all the taxes, fees, etc. and since the cell phone is on a monthly plan, the entire bill for it as well. "saves" me about $160 a month.

401k plan/match? - how much free money is put into the plan by the current job versus what the government will match in their version, i think govt is called a Thrift Savings Plan... when i was in the USMC there was no such thing for military, but some civilian government jobs had something. military now has something out there and civilian side is expanded, but i have not really looked into it. end result is their match is money toward your retirement that you did not have to put in out of your pocket, and if you have it available and are not using it..... GET THE FORMS AND START!!! also there may be a time requirement where you cannot enroll until after working there for a certain amount of months.

travel time/aggravation to work - 60 minutes to work in DC during rush hour is not like 60 minutes to work in a low congestion area where trip is longer, but you are driving, not parking on the highway, expecially with the top down and good weather in a fun car.... you're keeping the car, right?

prospects in current job - ok you have been there 9 months and should be coming up on an annual review. did you get hired on a lower salary/probationary deal where they want to be sure you could do the job, needed training which they sent you to, etc, and now they are impressed enough that they are willing to give x% raise and/or promotion to go with validated skill sets? what are there standard raises/performance raises for the next five year period that you can expect to get? the government ( you did not say if it was as a contract worker to another company for the government, or if it was as a GS scale worker) has set steps for number of years and hikes for promotion, so increases can be planned for, but you will never have the chance to fly like at a commercial company. 50k is a great raise today, but if existing job gets you % raises/promotions that will get better than the low % raises of other place and end up better, long term staying with current job is looking better. also, what happens at end of 5 years? are they promising in writing to put you on a different contract, hold you on for x amount of time to get another contract that you can work if nothing is available, etc.

skills set - are education packages in both? if you stagnate in new job because they only want you to do what is required, 5 years from now when you look for a new job, your knowledge in field may look outdated and make it harder to get a new position.

current bills - is your debt proportional to current salary? will the extra 30k cash (taxes are gonna take $20k!!) over the next year help you pay off the car, credit cards, etc. where the interest is taking a bite out of your wallet that current salary is just keeping you even with payments?

housing - rent or own? include cost of selling/buying new house into the equation, along with gains/losses on the sale getting new place, and if only renting at new place, factor in loss of tax deduction and capital appreciation if you are homeowner here.

you don't mention wife/kids, but if you got them, more variables in the equation.

good luck and hopefully whichever way you decide, next time you watch indiana jones movie you will not feel like crap/deja vu when you hear the old knight saying "He chose poorly."

keith

 

What's the wife think?

I would go for it. Maybe your current employer would offer you a fair raise to stay.

Good luck.

 

KAMcDonald: thanks for taking the time and effort to write all that stuff
I've thought about almost everything you listed, so let me give more details.

The job:
- is as a contractor for a company that is a single-client company, and has held this 5 year contract for the past 15 yrs.
- only benefits are a non-matched 401k - same as what I have now.
- it requires a relocation to Columbus, Ohio much lower Cost of loving, lower taxes, no PPT

So, I've priced the same medical plan (PPO) that I have with my current job and that would cost me $6000 a year. Reduce raise to ~ 44k.

I'll save about $500 annually on state income tax, and will move from the 27.5% to the 30.5% federal tax bracket.

I'll rent my house out here and purchase a new house in OH. Living in OH my commute will probably be much better than it currently is.
My working hours will be a lot less stressful, and I will get home by 4pm everyday instead of 7pm.

As far as current job, I've already received a review and a 2.25% raise, which is pretty measly. My current company is not profitable, and is seems very stingy with raises. My co-workers always compain about not getting raises and being rewarded for business they're brought in. This company has had a small round of layoffs every quarter I've been here, and it is not certain that they will make it yet. I do not get sent to any training classes or conferences, but with new job I will.

yes, it is proportional, but the 30k will make a world of difference in terms of stress and will enable me to save and invest!

I have wife and 2 kids and wife is very supportive and willing to move _again_ since this job prospect seems to have so many benefits.
too funny

BTW, some of you have suggested that I take the offer to my current employer and look for a counter and I do plan on doing that. Now have to decide what my breakpoint is..

Thanks again for the advice and suggestions.

 

Take the $50K and run. If a future possible employer asks you why you only stayed 9 months, be honest. If that employer doesn't understand, you don't want to work for them.

 

ok, $$ benefits about cancel each other out

less time on the road and more time at home makes for more family time, assuming wife is at home and kids stay out of detention at school, it's always the new kid in class that has problems

if you switch now, disruption for kids at school is minimal. you did not mention if wife has a job, but if she is very supportive of move, either has none or hates it anyway, but if so, factor in loss of her income, child care expense spent here/saved there if she does not get another job, or, if she has none here and wants one there, more mind boggling options!!

keep in mind that tax bracket increase from 27.5 to 30 is not just on your new 50k, it is adjusted on whatever you already make. a good thing to try is take out your 2001 federal package and run the numbers thru with you new salary, adjust for the income of the rent on existing home, both mortgages (can you deduct mortgage on home not primary residence and renting out???) etc. and see how much difference is really left in the pocket

also, since you are renting existing and thinking about buying in Oh., do you have enough to cover down payment on new place, pay for PMI if not, can you make both mortgage payments for awhile if renter here moves out and it takes several months before you get a new tenant, who is gonna manage your renter, and at what price. i have never done this type of thing, you need to talk to a cpa or tax shop to find all the gotcha's on this idea.

if i remember right, columbus has four seasons, so your gonna have to deal with SNOW!!! our s2k's ain't gonna cut it with a foot of snow outside the door, might mean getting a 3rd vehicle.

existing company possibly not being viable for long term, and possiblity of you getting laid off in one of the next rounds of right sizing, lack of paid training against the other sending you to class and being more stable (you know what it takes to kill a government contract even when everyone knows its bad?) makes that choice look easy. being with the company for 5 years and keeping current in your field will look good on the resume when you need to look for the next job.

is your current job a leftover from the tech craze boom? are you gonna leave any stock/options on the table when you leave? of course, very few of those companies are trading above any strike price, so it may be moot either way.

are you the other silverstone i see up and down cardinal drive all the time?

keith

 

personally, I'm not a red tape guy, even my last .com job was too much for me. Right now I could probably get another job that pays more, but I'd rather sit tight and keep reporting directly to the owner of the company.

Money can usually buy some peace of mind, but not always

Will you be working on secret projects? My uncle hated not being able to talk about his day at work when he did gov't contracting. Also, what is the product? If it's military you may run into an ethical dilemma...not saying you will, just throwing out possibilities.

 

I would never tell a current employer I am considering another offer, and solicit a counter offer. You may easily get labeled as a problem employee. I've seen it happen.

Either leave or stay, do not be wishy washy!

 

We just started a S2k club in Columbus Another *hidden* benefit of the move to Ohio