I'm looking to get a sanity check here. I have written before about potentially moving to NYC from a no-state-income-tax location and the amenities I would like to find. That has now come to fruition and I was just given an offer that would increase my base salary by $50k. This is all for a move within my BB, it's from one function to another.
My math says that it doesn't pencil out given taxes and the COL increases. The job is with a group that I want to work with - the job would be a lot of fun - but here's why I think the offer doesn't make sense:
- I am assuming a tax rate of about 30% all-in. But I think this might be a little higher because the calculator I'm using doesn't seem to account for NYC tax, which I think is another 4%? I'm at about 20% on taxes all-in right now.
- I am assuming a monthly housing increase of $3k
- While the new group is someone I would love to work for, my current position is steady and I have no fears of lay-offs or performance issues.
- I don't want to share actual numbers, but you can assume that I already make a healthy salary and enjoy a nice lifestyle at my current rates.
For my privacy, you can assume I live in a T2 city that has nice dining & entertainment opportunities, but it's certainly not New York. I pay about $1k for housing now and my housing in NYC has to allow for my dog to come with me and I will need at least 1 parking spot. That's how I'm coming up with the $4k delta
So, AITA for not taking the $50k? Am I missing anything here?
I vaguely remember your other thread and I think everyone on there said it didn't make sense for you to move, and you didn't seem to want to live in NYC either. You don't give your current numbers, but BBs are not going to double your salary to move from a T2 city to NYC. Most BB teams pay the same across locations, so a $50k bump is pretty generous if it's a similar role and team.
There are benefits to LCOL cities, housing expenses and lower taxes being two of the big ones. NYC is extraordinarily expensive, and I bet your delta might even be quite a bit larger than $4k of just rent/parking increases... food, dining out, entertainment, utilities etc are all way higher in NYC.
It's not a question of whether you're an asshole to not take the job, it's 1. whether you like the position and long-term track enough to compromise on a lower near-term take home amount, and 2. whether you actually want to live in NYC. Sounds like the combined answer is no... there's nothing wrong with being in a T2 city in a stable job.
I’m a big fan of NYC. I think it is in your best interest to move there. Sell both cars and rent a place. I know you love your 911, but you can always go rent a Lambo on the track on the weekend and get your kicks out there.
Also, you’re the asshole for making me google “AITA.”
Fuck that's funny :)
You just want me to move there so you can take my money in that WSO poker game that was on here a few days back!
haha yeah that is my sole priority to take your money in poker ♦️ ♣️ ♥️ ♠️
w/o your base (maybe give a range w/ a tight spread to maintain privacy), very hard to opine. Good Luck tho.
Sure, that number is a good assumption.
hahahahaahahahhaah whaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaat
You seriously can’t do the math yourself on taxes? Google “NYC income tax calculator” and click on the smart asset link
Assuming no pre-tax retirement contributions, ignoring benefits, etc.:
$200k pretax in Texas or Florida is $147,435 post-tax
$250k pretax in NYC is $155,234 post-tax
You’re not even getting a $10k raise after taxes and your living expenses are going to increase by at least $36k-$50k
You go to NYC because you love the city or you have a job offer there that you can’t get anywhere else. You’re paying (A LOT) for the NYC experience
Thank you for that succinct conclusion. Yes, the move itself is a net loser on the financial side. The target group is within Private Banking and yes, I realize that may be limited to offers in NYC for that world of finance.
I don’t think that’s the case at all. There are BB private banking groups in every major city.
One of the great things I like about big cities are the opportunity to meet new people, build social connections, and overall drive yourself in a direction of life you see fit. If you have the chance to move there, consider the pros and cons of it.
if you don't want to live in NYC, don't do it. beyond that, the salary increase will be eaten up by housing cost increases
that said, if the NYC opp gives you the potential to go from 250k to 500k in 5 years or something, the long game could make this a worthwhile decision. plus, if you're in a T2 no income tax state, I'd bet you could rent out your current place and then return when your NYC adventure is done
the question is really do you want to grow in a way that NYC will provide for but your current city won't? or, I believe you've mentioned you're not far from retirement so this is your last hurrah, in which case NYC makes no logical sense at all
Thank you for bringing up another facet of this. And yes, that's playing into my equation. I'm about 10 years from the point where retirement is realistic. So that does tell me, "hey play this safe, we're so close to retirement, NYC is not for you".
On the other hand, I still have some ambitions in my career. I have two more promotions needed to live up to my screen name. The move to both NYC and front office in Private Banking are certainly a move in that direction. The next promotion should be available within 2-3 years and MUCH easier being in NYC. MD will be possible after that. Making MD would be damn near impossible in my current city. So in that regard, yes, NYC will provide opps that will simply not be possible in my current setup.
You pay 1k for housing as a single individual?
sounds more like a T3 city to me
Yeah $1K rent is amazing - I don’t know how this is possible.
It pays to be a nice guy :)
$1K is possible in Chicago for a tiny studio in an old building without amenities. for $1400 in Chicago you can get 800sf 1bd with pool, tennis court, grills.
dude so when do you have to decide by?
Soon, just a few days. Part of me is delaying because when I say "yes" it means that I have about a million things to take care of.
Good for you man. Maybe you'll meet your future wife in NYC.
Is there anyway you can negotiate a higher pay bump? You could show them similar numbers to what the guy posted above where it basically nets out the same/worse if you move to NYC. Might be worth it if you get 70-75k+.
I have tried. I asked for more and they came back with this. I had another team - also NYC - make me their best offer and this team beat that. So when they tell me it's their best/last offer I tend to believe them.
AITA reddit style doesn't fit here at all
You're really going to be that guy, huh?
just saying you can't be an asshole for refusing a job offer. you're trying to force this format here for no reason.
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