Would you feel like you were getting a pay cut if you where working for a company that put 5% into your 401K in addition to what you what put in there, and you were guaranteed a raise every year that ranges from 2% to 5% if you then went to a company who does not guarantee a raise every year, but the year you don't get a raise they will you one week vacation and a check for $500.00 as an alternative.
The other pros and cons are the 1st company offers the raise and the 5% into your 401K, but there is no room for growth, and there will not be, and based on what I am asking for, if I get this new job with the two cons of no percentage going into the 401K, and no guarantee of a raise every year, I would be making about $4255.00 more annually. SO my question is would I really be taking a pay cut?
Also the 1st company gives you a raise, but it's about $500.00 to $800.00 added onto your annual salary
Example: $30,200.00 to $30,800.00
2007-04-26 04:41:09 · 9 answers · asked by Anonymous in Family & Relationships ➔ Marriage & Divorce
As for health insurance both companies pay for it (free to the emoplyee) as long as it is just for the employee. Also both companies take 6% of you net pay and put into an additional retirement account that's not link to you 401K
2007-04-26 04:54:07 · update #1
As for what kind of company it is, company one is the Local Government, and company two the the State.
2007-04-26 04:56:03 · update #2
The answer depends on the perspectives of both your age and personal philosophy about future. Your age determines the kind of risk you are willing to take and your philosophy determines your willingness to take such risks. You CANNOT have both money and zero risk.
If you are 20-30 and you have $10k to put away. Would you just put in the bank or buy government bonds (3-5% per year) or you buy some high growth stocks. Anything other than the bank or gov bonds have risks, we call that a premium. But if you are 50, you have to be more "risk adverse". The example is the same as taking a "government" job, where insurance is good and next to no layoffs but prospect of growth is slow.
Other than the government, I dare say that no company can offer you job security for a long time. Cost cutting is everywhere. Unless you are in the right field or right job that can put on the elevator, sooner or later your position is at risk. The kind of salary you mention means positions are that are "dispensable".
You can do some simple estimations about each possibility. At the end of the day, do you want to play it safe or be aggressive.
2007-04-26 05:00:46 · answer #1 · answered by Sir Richard 5 · 1⤊ 0⤋
Your choices are stay with a safe company that you will slowly earn more money with and build your retirement nest more quickly or take a risk and go to another company where you may or may not get a yearly raise and the only money being put into your account is by you. I think that is what you need to decide - do the safe thing or take a risk? Stocks are always a risk, by the way. I don't know if the second company says pay raises will be given if their profits are good? Or do they give raises based on performance.
EIther way - safe or risk? Your call.
2007-04-26 04:49:31 · answer #2 · answered by Stefka 5 · 0⤊ 0⤋
If there is no room for advancement in comp#1 and you think you've just about reached that glass ceiling I would look at the long term and go for comp #2. You can always join a 401k or invest in mutual funds on your own(i think is the best way anyway) . You should also look at the companies for their long term goals, is this a company that will be here in ten years? 15 years? and can you possibly do the same thing as a subcontractor with many companies
2007-04-26 04:52:09 · answer #3 · answered by Hi its me again 4 · 0⤊ 0⤋
What about the health insurance benefits? Which company has the best? If you desire to advance in the work world and the first company has no room for it to happen then you have to move to a company where there is room to advance. If you want security then stay with the first one.
2007-04-26 04:49:24 · answer #4 · answered by acmeraven 7 · 1⤊ 0⤋
Yes, plus if there is no room to grow, why would you want to be there? You mop the floors at mickey d's and then you move to the fries, Even mickey d's you can move up. Does a 401k build interest for more money?
2007-04-26 04:47:16 · answer #5 · answered by fourcheeks4 5 · 0⤊ 0⤋
401K's become worthless when the stock market crashes and the economy falls into a severe depression. So, I say skip the promises of %'s increases and go for the cash and paid vacation!
2007-04-26 04:45:44 · answer #6 · answered by Zebra4 5 · 0⤊ 0⤋
please IM me. I have figures on Company 1 for 20 years but need more info to compute a comparison for company 2.
I need to verify what I think is the starting salary and how much raises are if there are raises. If you IM me or email me I can send you my figures.
2007-04-26 04:55:03 · answer #7 · answered by oldsoftee2001 6 · 0⤊ 0⤋
faith & Spirituality, Horoscopes i think of human beings get caught up of their emotional reactions because of fact some human beings have a complicated time grappling with alterations of opinion or distinctive perspectives in those aspects. that's as though they have confidence that there may be basically one, maximum suitable "fact." They experience the might desire to shelter their ideals via arguing different Y/A shoppers down or denouncing them as idiots, as a substitute of awareness that all of us have bits and products of the "fact" and that alterations (or seeming alterations) are welcome, if basically to make the main of them.
2016-10-30 08:47:07 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The best advice is to go with the best returns and place it into a retirement fund.
2007-04-26 04:47:53 · answer #9 · answered by franj 2 · 0⤊ 0⤋