1351: [Part 2] Higher Salary vs. Better Benefits by Craig Stephens of Retire Before Dad on Job Selection Advice

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[00:00:57] Higher Salary Versus Better Benefits, Part 2 by Craig Stevens of RetireBeforeDad.com And hey there, welcome to the Wednesday edition of Optimal Work Daily. My name is Dan and today we're continuing yesterday's episode.

[00:01:11] So if you're new here or if you're skipping around and checking out what we have to offer, I would recommend listening to that episode first. That's episode 1350. But if you have done that, you're all caught up. Let's get right to part two and continue optimizing your life.

[00:01:25] Higher Salary Versus Better Benefits, Part 2 by Craig Stevens of RetireBeforeDad.com Next up is that dirty old 401k. I lost thousands over the years because of the lousy fund selection and high fees. Nonetheless, I managed to save more than $300,000.

[00:01:47] The 401k balance had to stay in the administering account until I left the company. I was fully vested so that's not an issue. The problem was the fees. The expense ratios on the funds were 1% to 1.5%, so staying employed in that plan cost me up to $5,000 annually.

[00:02:05] When I did ultimately switch employers, my health care costs dropped by more than half and the coverage was better. The 403b plan has 200 fund options instead of 12, with plenty of low-cost options. The matching is about 10% compared to 4%.

[00:02:20] All told, I calculated that my benefits were worth about $20,000 more than my former employer. Crazy, but true. Two Options When I Was Still Had My Former Employer

[00:02:31] When I was still with my former company, I sat down with Mrs. RBD and told her I wasn't thrilled with my employment situation. This wasn't the first time. I had a 14-year history with them, mostly on good terms.

[00:02:42] Prior to the job, I was broke, unemployed, and living with my parents. But we often disagreed on how to run the business, and my opinions were often ignored. The company was always putting out fires instead of preventing them.

[00:02:54] Part of creating a life of freedom, happiness, and purpose is to eliminate negative aspects of your life. I told Mrs. RBD that 2017 would be the year I would leave. That turned out to be true, as I left in October of that year. I saw two options in 2017.

[00:03:10] Continue working for the company and hope that a better one buys it, or actively look for a new job outside of my current expertise. But then something different happened. Number One Stay and hope that a better company buys it Most of the work I did, I enjoyed.

[00:03:26] I was an IT consultant working for a large institutional organization. I interacted with smart people and solved difficult problems. The day-to-day customer interaction was fine, but nearly every aspect of dealing with my company was unsavory.

[00:03:40] Added to my client work, I was asked to manage 15 or so company employees. The task needed a full-time project manager, and I recommended that, but the company wouldn't make the investment. Or Number Two Look for something new One problem is that my specialty is fairly narrow.

[00:03:57] I have significant domain knowledge of the computer systems of our end customer. Those skills are valuable, but only for their specific computer systems. I built some expertise that is transferable outside of this end customer,

[00:04:10] but leaving may have been foolish because my skills are more valuable where I was. My primary goal is to stop working full-time sooner rather than later, so starting a new career trajectory isn't so appealing right now. What actually happened? Turns out another similar mediocre company bought my employer.

[00:04:29] They were unimpressive from the start. It was unclear if they were going to keep our current benefits or move us under the parent company. Key admin people were subsequently laid off. This was a bad omen. Then something forced my hand.

[00:04:43] The partnering company I worked under lost funding on my project, and there was no longer any funding for my position. Instead of trying to work something out with my employer, I resigned. That gave me four months to focus on my side business

[00:04:55] and spend quality time with my family before finding my ideal job. We lived off of savings and seven income streams that I built prior to leaving my employer. Conclusion Weighing salary and benefits will change depending on your age and life situation.

[00:05:11] Not long ago, the benefits weren't an issue for me. Today, they mean a lot more. I'm supporting a family who relies on me to keep them safe and healthy. I'm there for them as a breadwinner and as a dad every day after work. Prior to early retirement,

[00:05:25] balancing earnings and quality time with family is difficult for some professions. I know an attorney who doesn't see his kids many weekdays. I don't want to be that kind of dad. Luckily for me, my profession provides a solid income and flexible schedule. But there's more.

[00:05:40] Benefits are more important as your family grows and everyone ages. I've waited too long to make this a priority. You just listened to part two of the post titled Higher Salary vs. Better Benefits by Craig Stevens of RetireBeforeDad.com We're driven by the search for better.

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[00:07:31] Unlimited more than 40 gigabytes per month. Slows. Full terms at MintMobile.com. I told you a little about Craig yesterday, but just to add to that, in 2021, he and his family did finally reach financial independence, but he never lost the desire to continue earning money.

[00:07:45] For him, his financial goals now revolve around flexibility, security, and options in life rather than early retirement. And if you enjoy Craig's writing, you can come check out our show that covers money and financial independence. That is the podcast Optimal Finance Daily,

[00:07:59] which you can find and follow wherever you're listening to this. So thanks so much to Craig for sharing this two-parter with us. And that's going to do it for today. I appreciate you being here, following, subscribing, telling folks about the show. We really appreciate all of that.

[00:08:13] So have a great rest of your day, and I'll see you back here tomorrow where your optimal life awaits.