Hows this comp?
Currently make $170k per year + 30% bonus on the private side (60/70hr weeks, some weekend work), and I essentially get no benefits. I have 9 years of experience in development (4 yrs) and acquisitions (5 yrs), and I have an offer put forth that sounds interesting:
-Public Sector job
-Asset Management
-$150k Salary
-Pension (70% salary for life when I retire)
-5% 401k Match
-Free healthcare coverage for me + family (also free in retirement)
-40 hrs per week, no weekend work
-Substantial PTO
Anyone that can provide thoughts on which opportunity is better? The public side has real stability (and a pension!), but the upside in private is a little higher (however it comes with alot more stress/unpredictability.) Also, I assume I can get promoted in the public role, but the pay increases won't be as drastic...
Thanks in advance!
How you frame it, and with how healthcare works in this country, the public offer seems better to me.
But I have a number of questions because that typically should not be the case, including how do you not have benefits at your current job and are these truly—truly—your only two options?
Because there’s no real financial growth in that public role. That isn’t a bad thing if you’ve already made it, specifically want to settle down, or have an internal urge to give back in a sense, but it’s definitely a factor.
Thanks for the quick follow up. I do have benefits at my current job, but nothing extraordinary (50% match up to 6%), and subsidized healthcare, yet I still pay ~$350 per check. Nothing to write home about, and most shops in the CRE industry that have $1B - $5B AUM aren't known for having great benefits anyways.
Also, I'm sure I could apply to other firms but my current trajectory is similar when comparing to other private roles. Not to mention, this public opportunity is essentially in hand ("one in the hand is worth two in the bush"), thus I'm trying to assess if it's really worth making the switch. The last data point I'll include is that in the public role, the increases may not be great, but they are guaranteed, so at worst I am looking at increases of at minimum 5%-7% per year, every year (not counting promotions).
Making $150k all-in with 9 years of experience is depressing but if its truly 40 hours/week I'd consider it. Cost of living wherever this is is the biggest unaddressed variable.
It's public so I'm not expecting the highest salary, but the 70% pension for life by age 62 seems comparable to purchasing cashflow properties if I were to stay on the private side (except much less risk). Also, the free healthcare (for a top tier plan) is a pretty solid benefit considering families pay $1.5k per month to cover everyone....so I guess the salary aspects aren't completely apples to apples. All that said, thanks for your perspective here as it does give me something to think about.
Expecting your local government's pension plan to be fully funded by the time you are 62 DOES carry risk...
Counting the free healthcare as "salary" is fair. Make sure the pension has inflation adjustments though. The way the US is money printing itself into oblivion might make you wish you had the properties (and their frequently MTM rents). Another thing to philosophize more about is retirement age. If you bounce around the private sector it's likely you shave off 5-7 years from typical retirement age. Although you could be in an accident or get cancer any time which does tilt the balance toward enjoying life now...
Haha the money printer aspect is a great call but the pension does include COLA adjustments for life as well.
Is this for texas?
How many years until you qualify for the pension and at what age does it kick in? I interviewed for a few public sector pension funds back in the day. It could have conceivably made sense if 1) I got my student loans forgiven after 10 years and 2) start earning years towards a pension at a young age. I feel like working towards a pension in your 30s isn’t worthwhile when private sector is capable of paying a lot more at that point.
I'm in my 30's and there are ways to buy time so realistically see myself retiring at 60-62 to get that full 70% payout -- so I intend on the pension kicking in at 30 years, but it vests after year 5. Free healthcare for me + family (for life) starts at year 10. They also do not pay into social security (since they have the pension) so that's an additional 10k per year to keep.
Private sector could pay more, which is a part of my hesitancy, but I guess I'm using this thread as a check to see if I'm making a major mistake by not taking this offer. It sounds so nice though and I've never seen benefits like this before. It's also in-office only 2x per week and every other friday off (9/80 schedule). Much to consider lol....
How does all in comp get as you gain seniority? I know some public pensions pay pretty well for senior guys and others top out at $200k ish. Benefits and hours sound awesome but I can’t see myself ever being happy with comp topping out $200k ish. Regardless of how cushy the job is.
Then again, I’ve never lived in a low COL city. Maybe I’d be happy with $200k per year in Wyoming or Wisconsin.
The job includes a pension and 401k matching? I thought 401ks are just for private sector jobs, and any defined contribution plan for the public sector falls under a different tax code (like how a 403b is for non-profit employees).
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