92k working for a corporation with healthcare plan, retirement match, vacation, sick and holiday vs Consulting

Question

Considering sacraficing the above for a consulting job with no benefits but pays around 160K. Considering taxes and benefits is it worth making the move?

Answer 1

The difference in after-tax pay will probably be about $50k -- so you need to determine if the additional expenses are more than that.

How much is replacement health care? If you have a family, it might be $5000.

What was the retirement match? $5000 in pre-tax dollars, and thus $7000 in after-tax dollars?

If you have 3 weeks of vacation, that's like 6% of your year, or maybe $4000 in after-tax dollars.

Do you have to move? If so, what's the difference in cost-of-living?

Do you have a longer commute? That's 40 cents per mile, typically. How does that affect your free time, too?

Which job will make you happier?

In the end, it'll probably make sense to switch -- but it won't be as clearcut as some might think.

Good luck,

Doug

Answer 2

I would say that it is definitely worth taking the consulting job provided that the 160k is guaranteed money... if its contingent on multiple factors (you say around 160- is that a rough number or an estimate?) than maybe 1 in the hand is worth 2 in the bush... otherwise i agree with the others who have answered your question to a degree, but the other factors are your knowledge and desire to make sure you can find appropriate replacement benefits, retirement savings plans, etc. A good start may be to sit down with a certified financial planner to look into all your applicable options and find out your true needs are from a benefits, retirement plans and tax standpoint.

Answer 3

The difference is too big to ignore. I will take the $160K with no benefits over $92K with benefits anytime, because after factoring in the taxes, health plan cost, vacation, sick and holiday days, retirement match, you still come out ahead. Spend some and invest the rest, you will make out like a bandit in the long run.

Answer 4

With pay around $160K, it's probably better than break-even assuming you can get whatever health insurance you need - if you or a family member has significant existing conditions, be careful.