What’s the motivation for big shots?

[Anonymous]

Im in a federal job that has staff and managers on economic matters. People go to consulting all the time, but especially so for the managers. The compensation increase can be huge: I’m talking from 200k to 500k at least.

What’s the catch? I admittedly don’t know the managers on a personal basis. Do managers in their late 40s/early 50s go into consulting and maintain the 50-60 hour work weeks that they do in the government? Do they switch to part time basis as a “consultant” and they may not get the full time compensation?

I’m not job hunting so I wouldn’t know the details. Just seems very common in the DC area

I’m mostly perplexed. Is it the money? Better flexibility? Is it a veiled partial retirement?

One reason I’m interested is that when I’m 50 or so, I’d like the flexibility of working 20 hours a week to do keep my mind sharp, but don’t know how these arrangements work. I don’t want to work 50-60 hour weeks into my 50s, and no amount of money is worth being away from my family

[Anonymous]

It was job security and quality of life....but those no longer appear to be a thing for feds.

[Anonymous]

Anonymous wrote:It was job security and quality of life....but those no longer appear to be a thing for feds.

I don't think that is the question. OP seems to want to know why Feds leave to become consultants.

[Anonymous]

You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

[Anonymous]

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

[Anonymous]

^excluding pension I’ll say. These managers are taking VERA at 50 or so, get a 45k pension, and have a 25 year of contributing to retirement. They could likely afford not to work (if they take my investing path, I guess). Just trying to understand how rare my own situation is, and do these people truly need the money. The money sounds like hazard pay. It would be helpful to know if they can pick their casework to their liking at least

[Anonymous]

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Are you basing like the next 15 years returns on the last five years? That’s probably not real realistic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Do you have kids? We spent about $50,000 a year on daycare and of course we will have college tuition heating up a huge trunk of money.

[Anonymous]

How many people are GS 15 for the entire 25 years?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Do you have kids? We spent about $50,000 a year on daycare and of course we will have college tuition heating up a huge trunk of money.

Yea but I spaced out my kids every 5 years. College tuition is almost fully paid for by having dumped 20k 10 years ago and let it ride the SP500

[Anonymous]

Anonymous wrote:How many people are GS 15 for the entire 25 years?

My entire section in the government. We got a lot of lifers

[Anonymous]

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

This is definitely not a representative of most federal employees, even GS-15s. I am guessing your spouse is also a high earning employee which, while not rare, isn't typical.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

This sounds both naive and judgmental. Not everyone is like you or has your same situation. This attitude of assuming everyone is like you and therefore should think like you is part of the problem we face. Some people have kids with special needs. Some people never reach a GS-15 level, and certainly not many where both spouses have high income Fed jobs. Some people are paying for kids and parents. There are hundreds of reasons why someone in their 50s will need (or simply want) to get a raise and/or do something differently when they hit middle age.

[Anonymous]

500k is not everyday money in consulting. That would be pretty high up approaching managing director partner etc and only at the top firms. I think most would be at 250-350 at best.

[Anonymous]

For most people 50-65 are often the most EXPENSIVE years. Kids in college, mortgage on your trade up home, car insurance with kids on policy. Saving for retirement.

At 58 I had two kids in college at same time,my car insurance skyrocked with kids on plan and home expenses shut up as property taxes, home insurance and repairs post covid way up.

You might also in your 60's now have weddings, new grandkid, medical bills.

And most people around 60 start thinking, let me get home repairs all done, get new cars or car repairs caught up, get medical caught up. Max out all retirement savings.

200K is not cutting it at all at 58 when bills are roaring into your life. It is not 45 when in starter home and kids public school days. It is big bills time.