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Author: jodyf One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75797  
Subject: Choices...good job, no retirement plan- Date: 3/1/2000 10:24 PM
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My husband (36 y/o) has two offers for employment: the first is a track to become principal/owner of an architectural firm, but the firm is small, so no formal retirement plan or 401k plan is available. The other is a position that is senior, yet no where near the possibility of aquiring equity as the first. This position has great benefits, excellent 401k plan, etc. They both offer similar base salaries. This is an odd question to put out, but here it goes....(We need some insight!) Should he focus on the retirement issue at all, or focus on the long term goal of increasing salary/equity? We both have always maxed-out our contributions to our 401k plans, as we need the tax benefit, and we want to retire comfortably. Are there other ways to contribute to a retirement plan tax deferred? Has anyone out there ever been faced with a similar dilemma?

Thanks in advance.


Jody
(I also posted this on a different board, then realized it belonged here. Sorry for the duplication.)
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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19714 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/2/2000 1:17 AM
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Should he focus on the retirement issue at all, or focus on the long term goal of
increasing salary/equity? We both have always maxed-out our contributions to our 401k plans, as we need the tax
benefit, and we want to retire comfortably.


i think you both should Focus on the quality, challenge and satisfaction of the work.
on the people he'll be working with and you'll have to socialize with.
on the which job will give the most time or flexibilty for time with you and the kids..

Remember "The Grasshopper and the Ant".

i knew a guy who at a slightly older age (42) had to choose between stable job with good salary , bennies, retirement &c. and starting his own business. He chose the latter for the freedom and challenge and because he could work from home and have more time with his son.

It was a struggle, but his widow was able to sell the business 10 yrs later for enough that she's pretty much retired now.

just my opinion,

JT

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Author: reidmp Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19729 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/2/2000 1:26 PM
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!They both offer similar base salaries. This is an odd
!question to put out, but here it goes....(We need
! some insight!) Should he focus on the retirement
!issue at all, or focus on the long term goal of
!increasing salary/equity? We both have always maxed-
!out our contributions to our 401k plans, as we need !the tax benefit, and we want to retire comfortably. !Are there other ways to contribute to a retirement !plan tax deferred? Has anyone out there ever been !faced with a similar dilemma?

Hmmm, tough choices. Here are my thoughts and cliches, such as they may be worth.

1) Never take a job you wouldn't like unless you have no other reasonable choice.

2) Many people under-estimate how much they want/need for retirement, and find their lifestyle options very constrained as they grow older. If you find you are factoring Social Security payments into your estimates of what you'll have vs what you need, I'd worry about your retirement financial situation. Look at whatever savings and growth you can reasonably expect, and do the comparable financial math on both your employment options to see if you can retire the way you want to. Take the pessimistic view on both options, and make sure that, worst case, you'll not end up in financial hot water later on. I'm not saying you should always assume the worst, but you should do the number-crunching to be sure you know what "worst" looks like in case it comes knocking at your door.




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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19744 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/2/2000 8:12 PM
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My husband (36 y/o) has two offers for employment: the first is a track to become principal/owner of an architectural
firm, but the firm is small, so no formal retirement plan or 401k plan is available. The other is a position that is senior, yet
no where near the possibility of aquiring equity as the first. This position has great benefits, excellent 401k plan, etc. They
both offer similar base salaries. This is an odd question to put out, but here it goes....(We need some insight!) Should he
focus on the retirement issue at all, or focus on the long term goal of increasing salary/equity? We both have always
maxed-out our contributions to our 401k plans, as we need the tax benefit, and we want to retire comfortably. Are there
other ways to contribute to a retirement plan tax deferred? Has anyone out there ever been faced with a similar dilemma?

Thanks in advance.


Lets assume that with hind site we know that the job with the 401k will give you more money over time, But the ownership potential job will give you the most satisfaction.

Pick the ownership potential job.

At 36 I would put retirement second to job satisfaction.

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Author: mphipps Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19749 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/2/2000 9:51 PM
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Yea everyone.
Its the choice
Go with SEcurity of job
Or strike out on your own.

The answer is ......
Do you have the proper amount of capitialization to go the owner route.
Is Your husbands wife will to support him thru the long long long hours at the small firm. Yea, she might say that now. But just wait.



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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19784 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/3/2000 11:02 PM
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I'm currently reading a book called "The Millionaire Mind", it's the follow up to "The Millionaire Next Door". A quick rundown so far that I've read. Theses people who've made it "big" have basically worked for themselves. There "retirement accounts" were to a large part the equity in their business. These people have all found niches that they could exploit and all worked hard. They weren't geniuses nor had megabucks to start with. Interesting read and reaffirms some of the decisions I've made before I knew I had the "millionaire" potential.

JLC

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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19785 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/4/2000 12:38 AM
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"retirement accounts" were to a large part the equity in their business. These people have all found niches that they could exploit and all worked hard.

finding the right 'niche' is a kind of genius..

just remember that for every guy who was interesting enough to make it in the book, there's probably two dozen boring guys like me:

found niche i thought i could exploit and worked very very hard. and at the end, i was 40k in debt, had decimated the IRA and was thinking about moving back in with Mom.
i know i made misktakes, and i don't regret the attempt.

but books about all the failures don't sell .

"grasshopper & the ant"


JT

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19788 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/4/2000 9:54 AM
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<<<finding the right 'niche' is a kind of genius..>>>

Yes, but the vast majority of these jobs were plumbers, clothes cleaners, landscapers, etc, etc. What the world would consider boring and meanial jobs. These people just worked hard.

<<<just remember that for every guy who was interesting enough to make it in the book, there's probably two dozen boring guys like me:

found niche i thought i could exploit and worked very very hard. and at the end, i was 40k in debt, had decimated the IRA and was thinking about moving back in with Mom.
i know i made misktakes, and i don't regret the attempt.>>>

True. However, another interesting fact, the majority of these people were failures at some point in time. They just kept plugging away. They didn't always succeed at their first attempt.

<<<but books about all the failures don't sell .>>>

Not yet anyway. Wouldn't suprise me if the author wrote a corallary book on why people fail. You can learn just as much from mistakes as failures.

JLC





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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19789 of 75797
Subject: Re: Choices...good job, no retirement plan- Date: 3/4/2000 9:55 AM
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<<<You can learn just as much from mistakes as failures.>>>

Supposed to read: ...learn just as much from mistakes as successes.

See what I mean???

JLC



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