Fed CPA considering a job in the private sector...How much money is worth giving up the stability?

[Anonymous]

I am CPA at the SEC, I think it is a much better WLB

[Anonymous]

I wouldn’t start a family and a new high demand job around the same time. You won’t have the flexibility needed when the baby comes. Plus, kids get sick a lot in the early years, as a teacher it would be hard for your wife to take all the kid sick days. They have the better hours for the other bits, but not the unexpected sick days.

[Anonymous]

Damn you poor

[Anonymous]

I think unless you're highly skilled in a technical field, or very senior and being hired for your network... doubling or tripling your comp in the private sector is extremely unrealistic.

The short answer is it depends on your personality. Will get bored and start to hate your job in 5 years? You may not be able to jump for a massive bump right now, but the ceiling in 5/10 years is obviously much, much higher.

[Anonymous]

Anonymous wrote:factor in health insurance. federal health insurance is heavily subsidized and top quality. when DH left federal for private, our insurance costs between premium and deductible went up by appx 30k.

This. I make 300k in the private sector..we have a child with disability and let me tell you are our healthcare costs are astronomical. At least the company I work for pay well, but they sure do you have a really bad health insurance in terms of cost and quality.

This is one of the issue in the private sector. If you have a healthy family with low utilization great if not a good chunk of your high pay will no doubt fo into health care expenses

[Anonymous]

Anonymous wrote:I am CPA at the SEC, I think it is a much better WLB

Sure, but that’s a special case. Half of DCUM wants to work there.

[Anonymous]

It’s a false premise. Private sector jobs are just as secure for people that work hard.

[Anonymous]

Anonymous wrote:I am a CPA in a niche field and regularly get multiple messages from recruiters. I am talking to one this week and possibly another next week. I am in the 4.4% pension deduction category.

Total Comp at my current job is 124,846(approximately 109k base plus 15.5k pension). I am not including the TSP match since most jobs provide a similar match to the FED 5%.

Seeking opinions. I wouldn't leave for less than my current comp, but what is the $$ you would leave the stability of the federal government given the option?

Could you explain what the "plus 15.5k pension" means ?

If your base salary is $109,000 less 4.4%, your real base is $104,204. Is this correct ?

The stability of a federal job is worth about double your current base (as I do not understand the $15,500 pension that you added into your "total compensation".

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am a CPA in a niche field and regularly get multiple messages from recruiters. I am talking to one this week and possibly another next week. I am in the 4.4% pension deduction category.

Total Comp at my current job is 124,846(approximately 109k base plus 15.5k pension). I am not including the TSP match since most jobs provide a similar match to the FED 5%.

Seeking opinions. I wouldn't leave for less than my current comp, but what is the $$ you would leave the stability of the federal government given the option?

Could you explain what the "plus 15.5k pension" means ?

If your base salary is $109,000 less 4.4%, your real base is $104,204. Is this correct ?

The stability of a federal job is worth about double your current base (as I do not understand the $15,500 pension that you added into your "total compensation".

OP here,

I agree my real base is about 104k.

The 15.5K I include in my total comp is what my job pays toward my pension. It will pay out 36,000 a year when I am 57, if my income stays the same as it is now. This is separate from the 401K/TSP match.

Thats why I include it in my total compensation. If I had that extra money, Id invest it anyways.

[Anonymous]

Anonymous wrote:It’s a false premise. Private sector jobs are just as secure for people that work hard.

No, you mean who know how to schmooze with their management and can be their mini-me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s a false premise. Private sector jobs are just as secure for people that work hard.

No, you mean who know how to schmooze with their management and can be their mini-me.

I agree with the pp that if you are good and work hard, then you shouldn’t worry too much. That said, jobs can still disappear for a variety of reasons- mergers and restructuring for example, that are not your fault.

I wouldn’t leave government for less than a 30-50 percent pay increase. Being the sole breadwinner for a family is a huge responsibility.

[Anonymous]

Anonymous wrote:factor in health insurance. federal health insurance is heavily subsidized and top quality. when DH left federal for private, our insurance costs between premium and deductible went up by appx 30k.

Oh c’mon. Stop the fear mongering.

Plenty of private companies have better benefits than the public sector.

My own spouse has just as inexpensive of healthcare, more annual leave and more flexibility.

[Anonymous]

Anonymous wrote:OP here,


Wife isn’t a teacher, she has a 9-5 all year. We could definitely live on her salary alone with some sacrifices, and have a 6 month emergency fund. However, we are planning for the future and we made the decision that she would stay home with kids if we have any.

So at the point, it will just be me working. Ive seen some advice on 1 year emergency fund if there is only one person working.

Like I said earlier in my post, I doubt I’d could double my salary by going private. I did a little math and if I stayed stagnant for the next 30 years my pension would be 36,000 a year, which is the equivalent of 900,000 at a 4% draw rate.

If my comp is hovering around $125,000, would $150,000 be worth it for me to leave?

No kids(yet)
HHI a little over 200k but will be cut in half if we have children
No mortgage, but also no debt. Very cheap rent(15% of take home pay)
6 months emergency savings

Wife is a teacher with low earning ability and you’re thinking as a CPA you might stay in a low paying government job?

You’re really selling yourself short and must be extremely risk adverse.

[Anonymous]

The immediate increase to jump to private sector is not going to 2x and other crazy talk. But the the career progression compensation is significant compared to government. It is not difficult to make $350k+ as a mature CPA in private. Agree that healthcare will likely be more expensive but that doesn’t come close to negated the additional compensation. I believe, yes, it is more hours but it also come with intellectual stimulation. More likely to get laid off, yes but likely more opportunities for promotions and equity comp. Both options are good, the choice depends on life you want. But look at a 10 year horizon when making that choice not the immediate compensation delta.

[Anonymous]

I would not leave because you’ll face age discrimination and layoffs in the outside world.