paivag

Let's hear from some of you vintage folks on what you would do?

My Senario:
I just got off the phone with a working peer who is taking senior opportunities outside of our company at the moment. He indicated that he would like to take me along if I wanted. The opportunity for me career-wise would be the same position but with a substantial raise of 40-50% more of what I am making now. With the opportunity to move into his senior role 3-5years making double of what I am doing now.

Now for the bad news, I am one year shy of vesting within my current company. Meaning that all the company contributions and a pension benefits would not go with me. I have been aggressively participating in these plans.

I am 31yrs old, so I have some time before I retire but if I take this short term gain would it hurt me in the long term?

I have yet to be vested in one company due to the rapid turnover in my field. Although this is only my second company of employment since college

Zippy

You really need to look at the long term. 10, 15, 20 years or until you retire.
What is your TOTAL potential at your curreent job including your vesting vs. what is your potential in moving. 40-50% increase in salary and promotability. If you were to bank the increase alone, how long would it be before you recovered the amount of company match in your 401K. If their contribution has been 5% (for instance) how long will it take at the higher slaery to meet or surpass that number?

Just my opinion.

Smokee

I'll make one comment, if you believe you're tying your career to this guy, think long and hard about it. You mention in 3-5 years taking his spot. Well that's if all goes according to plan. I've witnessed enough 'partnerships' at work go up in smoke to know I never want to tie my future well being to anyone but myself.

One meltdown by that guy, a divorce, a change in plans for him, whatever, and you go down too.

If you believe your career will progress independent of him, then disregard all of the above.

MsPerky

^ If you wait until you are fully vested with your current company, can you make a move then and keep at least a portion of your benefits? I'm not familiar with private retirement plans. It is only one more year. I personally would not want to throw away my long-term gain for a potential short-term one. At your age, you don't need to do that. If you are worth pursuing now, you will be even more so later. Good luck with your decision!

QPhox4

You face a dilemma a bunch of my friends faced. We entered the Air Force at age 22, spent 9 years on active duty, and considered leaving the military for the Airlines. Why? For the money! 9 years spent with nothing to show except the experience. I chose to stay "in" for the security. Some chose to get "out" and now have a lot more money and toys than I do. Others got out, and started with "the wrong" airline, and wound up chasing jobs as their airlines folded. Security, or possibilities? Are you a gambler? How lucky are you? If you "stay" with your current situation, are you happy with your job and comfortable with the salary? Things to think about, only you can answer. Personally, I'd probably not gamble. My son, on the other hand, would jump at the new prospect.

ralper

You are young enough to be able to take the chance. While your pension is a consideration, you need to realize that you have almost 30 years before you touch it. If the move will result in more money now, and perhaps greater pension contributions, it is probably worth moving.

As has been said, you need to make sure that the opportunity that you think exists, really exists. If it does, I'd very strongly consider moving.

I might also suggest that you check with your HR department to find out the actual consequences of a move in terms of your pension.

RedY2KS2k

The first thing you need to do is determine how much money you're talking about. Don't tell us, just figure it out. I suspect that most company matches in 401k's are under 5% of pay max; times 4 years (one year shy of the 5-year vestiture) is 20% of pay. I have no idea of the company contribution to the pension fund; you're young and haven't been there long, so I suspect it's not too much. Find ou the cash value of the pension, now. (It's value now if you were vested.) The first thing you need to do is quantify the loss if you leave.

I'll say only a little more. The math is junior-high level stuff, I leave that to you. How long will it realistically take to save up what you've lost if you take the new job?

None of us can help you evaluate the future you may have where you're at now, your company's prospects over the medium term, etc. In todays business world, being good at your job doesn't mean that you'll be allowed to keep that job. Companies go bankrupt, get bought out, outsource departments to foreign countries, etc. Research your company's prospects. Then you need to evaluate the same things for the new company. DO YOUR HOMEWORK! Research the new company like you were a job applicant - which your are. Do some research on your present company.

Good luck, whatever you decide.

paivag

Thanks all for the comments. All the advice that has been mentioned is what is going through my head right now. I am a statistics man so the numbers definitely have to make sense for me to do this. I am also not a gambler. I still need to find out more about this opportunity as I don't want to fly blind in. I'll let you know the outcome.

ralper

Good luck.

NNY S2k

Just a thought...Would your peer consider holding the position untill you get your 10 yrs. in?