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Thread: Invest 20K a year? Stay with my job?

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    Default Invest 20K a year? Stay with my job?

    My vanilla job pays 30K a year, but pays housing/medical/free stuff/food, comes out to be about 40K a year. I think I'm low-middle class. The job has a retirement plan, and I knew it was great for a while, and I probably put in 18K into it in the past 3 years (I am 24). It pays 5%-8% per year, and it's compounding, don't know the math, but website calculator it comes up in over 400k now at 60 on what I put in right now. This is without touching ROTH IRA. It's the years that matters.

    Like my job, but they are not the only one offering retirement, but they offer the best pension plan by my 40s if I quit it (other places pay 50k-60k for what I do, and I might not get hired for 6 months to 1 year). I don't want to shoot myself in the foot by going to another career, because of the pension plan. And my job is easy, I see my mother suffering with a hard job, and I am just "oh I work hard (half the time on facebook)."

    I know how lucky and "unlucky" I am, since I see others who make 50-70-100k, doing the bare minimum all day. And others who work like a dog and make minimum wage. If you were me, would you get another job (risking the pension plan, and loss income from waiting), go to school full time (knowing you have no legit income coming in for 2 years)???

    Or just stay at the current job, and invest 20K per yr... so you know your money will be worth it in 30-some years...and do college part time on the side, and stay with the same business in hopes of a pension?
    Last edited by DamnJolene; 12-25-2016 at 07:13 PM.

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    Default Re: Invest 20K a year? Stay with my job?

    There are some great threads on here in dollar den on increasing your streams of revenue, which, IMHO, you might want to consider. You seem to have one active stream right now (maybe two, if I remember your other threads) and it sounds like no passive streams.

    What ideas do you have for raising revenue in a way that doesn't require a specific schedule? You could keep your vanilla job, and add another stream.
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    Default Re: Invest 20K a year? Stay with my job?

    I'm interested in the responses, since i think i understand what the OP is getting at here..

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    Default Re: Invest 20K a year? Stay with my job?

    Quote Originally Posted by charlie61 View Post
    I'm interested in the responses, since i think i understand what the OP is getting at here..
    Thanks. Well this was a very tough decision *I been thinking about this for a year now*.

    If I were to live to 100 this would be no brainer for me, but there's no guarantee. I am also investing in the hopes I live to 60.
    Last edited by DamnJolene; 12-25-2016 at 07:20 PM.

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    Default Re: Invest 20K a year? Stay with my job?

    Your profile says, "Curious About Being a Dancer". Is that something you're seriously considering? If you decide to become a dancer, I think a big factor would be how well this job fits in with dancing versus another job.

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    Default Re: Invest 20K a year? Stay with my job?

    Quote Originally Posted by eagle2 View Post
    Your profile says, "Curious About Being a Dancer". Is that something you're seriously considering? If you decide to become a dancer, I think a big factor would be how well this job fits in with dancing versus another job.
    That's a good point.

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    Default Re: Invest 20K a year? Stay with my job?

    I had assumed you were a dancer or working in some aspect of the industry as well. Even with your job paying your housing expense I would find living on just 10,000 a year with no other income source would be a bit challenging. Also, not sure what type of retirement plan you have but many retirement products limit to what you can deposit per year before your income taxes are effected. I know you also mentioned a ROTH account- it may be more prudent to put additional money here and less in the retirement account offered by the employer.

    I always recommend additional schooling esp. at 24 years old and if you are giving your self higher credentials (or a more advanced degree).

    Additionally 30,000 plus a pretty hefty benefits package in an entry level position will probably be high forties, low 50's plus benefits in the next few years. I can not imagine they would pay your housing but not have periodic or COLA raises built in.

    I personally think, unless you can come up with a valid argument for quitting you should stick it out, go to school and maybe supplement your income through dancing or freelance work in the industry you are currently in.
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    Default Re: Invest 20K a year? Stay with my job?

    Quote Originally Posted by DamnJolene View Post
    My vanilla job pays 30K a year, but pays housing/medical/free stuff/food, comes out to be about 40K a year. I think I'm low-middle class. The job has a retirement plan, and I knew it was great for a while, and I probably put in 18K into it in the past 3 years (I am 24). It pays 5%-8% per year, and it's compounding, don't know the math, but website calculator it comes up in over 400k now at 60 on what I put in right now. This is without touching ROTH IRA. It's the years that matters.

    Like my job, but they are not the only one offering retirement, but they offer the best pension plan by my 40s if I quit it (other places pay 50k-60k for what I do, and I might not get hired for 6 months to 1 year). I don't want to shoot myself in the foot by going to another career, because of the pension plan. And my job is easy, I see my mother suffering with a hard job, and I am just "oh I work hard (half the time on facebook)."

    I know how lucky and "unlucky" I am, since I see others who make 50-70-100k, doing the bare minimum all day. And others who work like a dog and make minimum wage. If you were me, would you get another job (risking the pension plan, and loss income from waiting), go to school full time (knowing you have no legit income coming in for 2 years)???

    Or just stay at the current job, and invest 20K per yr... so you know your money will be worth it in 30-some years...and do college part time on the side, and stay with the same business in hopes of a pension?
    My first bit of advice would be to not query the internet for life advice from people you know little or nothing about who in turn only know as much about you as you are willing to provide.

    From what little you've provided, you are head and shoulders financially above a lot of people your age, even a bunch 5 to 10 years your senior. You've been a bit coy about what you currently do, even more coy about what you'd really like to do. I'm guessing that you're in the military (non combatant specialty, non-deployable unit), work for the government, are a teacher, or in healthcare. I guessed military first, because very few civilian companies pay for housing, plus offer a decent pension for someone in their 40's, 20 yrs. of service.

    I'm getting that you seem to like what you're doing, but want to advance to a higher level of income, with limited options to achieve that level by sticking in present position. Most of the fields/jobs I've mentioned probably wouldn't look too kindly on hiring/advancing you if they knew that you became a dancer. In that case, understandable about the coy part.

    On the pension thing, I don't feel we're on the same wavelength. You mention putting 18K into plan over a 3 year period- that sounds more like a 401K plan to me. Any "pension" that I know about doesn't require any employee contributions, and is based on a formula taking years of service and average income into consideration.

    I haven't given any cogent answers yet, because I'm not sure what it is you're looking to do, nor do I feel completely on the same page wrt to some key features of present job. You seem to be thinking about eventually cutting apron strings from present position to move into something more interesting, which may well be dancing. Or are you looking to dip your toes into new area part time while maintaining present position ? Are you starting to see how useful seeking answers from strangers on an internet board can be ?

    OK, I'll leave you with some useful gauge. Wrt the 5-8% annual rate of return on apparent 401k investments, you should double your money every 12 to 14 years. (Rule of 72- dividing 72 by interest rate, or rate of return will give you the number of years it will take to double your money at that rate.) Lastly, financial companies have studies demonstrating how someone investing $5K/yr between the ages of 25 to 30, then doing no more will have more money than someone doing the same thing, but between the ages of 45 and 65. ( Investing 4 times the money, but at a later date). You're off to a good start.
    Last edited by minnow; 12-27-2016 at 08:46 PM. Reason: typo
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