At 65 my 401k will be two million. In private

Anonymous wrote:

OP here. Pension plan, provided I vest fully, will be 50% of my final annual salary at retirement. It will include retiree health care and I have the choice of a PPO, at $75/month and exceptional coverage. Or a HDHP, with $3200 deductible for family, fully paid by employer.

What kind of job/company has a pension that is 50% of final salary? That sounds amazing.

I've heard this debate put in the context of a lottery winner. You win a $3M jackpot, but the lottery buys you an annuity that pays out the full amount after 20 years - or you have a choice to take a lump sum of $1.2M.

If you have the financial discipline, you can invest the lump sum and earn a return that far outstrips the annuity that the lottery would purchase. Unfortunately, most lottery winners (and perhaps most people for that matter) don't have the necessary financial discipline.

Many public sector employees hit their pensions (i.e. military or regulatory agency), then move to the private sector for more of a financial cushion. If you move to the private sector before your pension, then you're at a significant disadvantage.

I have a pension but my 401k is a much better value. My pension doesn’t have a COL adjustment and my 401k grows most years.

It's a bit like paying off your mortgage early when you have a low interest rate. In theory, you should not do it, because you can make more on your investment income and have a more liquid set of investments. In practice, it provides some people a real piece of mind.

I am one of those people who will not pay off my mortgage ,but I love the security of knowing that I have a pension.

I am in a pension position and can retire as early as 52 (they have since changed this and most people will need to work to 65). I invest in more aggressive funds because I know I will always have coverage with my pension. I love the work life balance and the security of my position. I could make more elsewhere but would need to put in more hours and more hustle. I did that when I was younger and don't need to do that anymore.

OP, you have the luxury to make the choice either way because your current financial situation looks really good. It just depends on your goals.

Anonymous wrote:If you’re truly comparing a $200k job to a $350k job, then a pension is not going to make up that salary difference unless it’s a super, super cushy pension. Without details on the pension plan, it’s impossible to compare.

If the 350K job culls you before the 4 year vest it's not worth much.

Anonymous wrote:If you’re truly comparing a $200k job to a $350k job, then a pension is not going to make up that salary difference unless it’s a super, super cushy pension. Without details on the pension plan, it’s impossible to compare.

OP here. Pension plan, provided I vest fully, will be 50% of my final annual salary at retirement. It will include retiree health care and I have the choice of a PPO, at $75/month and exceptional coverage. Or a HDHP, with $3200 deductible for family, fully paid by employer.

If you’re truly comparing a $200k job to a $350k job, then a pension is not going to make up that salary difference unless it’s a super, super cushy pension. Without details on the pension plan, it’s impossible to compare.

Anonymous wrote:

Anonymous wrote:There is nothing better than regular checks when you are old

+100

Piles of money for when you are not old AND when old is better

Anonymous wrote:There is nothing better than regular checks when you are old

+100

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, after thinking, I think in your case it make perfect sense to move if you do get an offer of around 350k+bonus. That is significantly more than what you make now, and, moreover, no pension annually makes up for that difference. Sure the job may not be as stable, but at almost 2x the comp (if not more, if bonuses are substantial) that is a risk worth taking (as long as you put aside more $$ overtime). Worst case scenario if laid off, you can go back government afterwards.

Im confused, to people routinely leave for industry for this money, or people in your field can make that much? I’m in IT and I love my work life balanced gov job, and there is no way I’m lateraling into a $400k job like my classmates who went to tech directly. We are same “industry” but chose different paths and I never see anyone switch (either way to be honest, but I expect my tech peers just retire early)

Sure. My wife doubled her salary when she left the public sector. She is now earning three times what she made as an SES.

Are you OP? I mean in her particular role. I know it happens in general, usually for lawyers or more political roles like an SES leadership (I assume she went to someone using her connections to government to enhance business, rather than she has skills that are worth that much)

Anonymous wrote:

Anonymous wrote:OP, after thinking, I think in your case it make perfect sense to move if you do get an offer of around 350k+bonus. That is significantly more than what you make now, and, moreover, no pension annually makes up for that difference. Sure the job may not be as stable, but at almost 2x the comp (if not more, if bonuses are substantial) that is a risk worth taking (as long as you put aside more $$ overtime). Worst case scenario if laid off, you can go back government afterwards.

Im confused, to people routinely leave for industry for this money, or people in your field can make that much? I’m in IT and I love my work life balanced gov job, and there is no way I’m lateraling into a $400k job like my classmates who went to tech directly. We are same “industry” but chose different paths and I never see anyone switch (either way to be honest, but I expect my tech peers just retire early)

Sure. My wife doubled her salary when she left the public sector. She is now earning three times what she made as an SES.

Anonymous wrote:OP, after thinking, I think in your case it make perfect sense to move if you do get an offer of around 350k+bonus. That is significantly more than what you make now, and, moreover, no pension annually makes up for that difference. Sure the job may not be as stable, but at almost 2x the comp (if not more, if bonuses are substantial) that is a risk worth taking (as long as you put aside more $$ overtime). Worst case scenario if laid off, you can go back government afterwards.

Im confused, to people routinely leave for industry for this money, or people in your field can make that much? I’m in IT and I love my work life balanced gov job, and there is no way I’m lateraling into a $400k job like my classmates who went to tech directly. We are same “industry” but chose different paths and I never see anyone switch (either way to be honest, but I expect my tech peers just retire early)

Do you discpline to placing the difference into retirement with dividend stock?

Putting 160k difference into funds/dividend meaning you are the pension plan.