DH WR Update

[phunluvin82]

I posted a lil while ago about how DH was hating his job/boss and desperate to find something new and txting me all damn day about how he 'didn't know how much longer he could take it'...I was worried he was going to up and quit before lining up something else...

So, H found a new job in his field, but in a different sort of capacity. The new company wants to pay him 'x' per week as an independent contractor. The gross pay comes out to about a $9k increase, but it doesn't have the benefits, insurance, 401k match, etc as his former corporate job.

He is over the moon happy, says it's his dream job, everyone at (former company) is soooooo jealous of what he's leaving for, he will get to work on soooo much awesome stuff, travel, etc, etc.

I'm happy for him...but at the same time, I'm just nervous about losing the stability of a corporate job, dealing with the tax implications of working for himself, etc, etc. I also just found out that adding him to my health insurance will cost over $300 a month...there goes a good chunk of that $9k. We are going to see how it goes, but he will likely eventually end up needing a vehicle...we are currently a one car household and he walks to work. So, another car...there goes pretty much all of that "increase" in pay he was all excited about.

I'm trying not to be negative about this and harp on my various concerns though b/c he really needed a change and is so excited. He is just crap with money so I know I'm going to have to be very involved in making sure he sets aside part of his pay for taxes, opens a retirement acct, etc. It's just seems a little daunting when I already have a lot on my plate. I already have a meeting scheduled with a CPA though

[mbcdefg]

That's good that he's happier. Hopefully that will be more a motivation for him to stick to a budget, because he'll feel like it's worth it for him.

Have you priced out an individual insurance plan for him, rather than add him to yours? When I was contracting a few years ago it would've been super-pricey to add me to MH's insurance at that time (since he wasn't tenured yet), so I bought a Horizon BCBS plan for myself. I think it was under $200 a month.

[dexteroni]

Congratulations to him! It's so rare for someone to love their job that much, and IMO that's more important than money. Try to appreciate the positives - you were worried that he would quit, and he didn't. He was miserable, and now he's not. There are increased costs, but he's making more and it will cover them.

IMO the real problem is that you don't seem happy about handling the finances by yourself. Maybe a goal can be getting him more involved or at least more aware so you don't feel so much pressure.

[Deleted]

If he's happy, it's probably worth it to take a small pay cut.

And if that's their initial offer, he may still have room to negotiate.

[Deleted]

I think that's great news for him! Look on the bright side, at least he didn't quit without anything lined up. Maybe this will also help him develop more fiscal responsibility.

[Deleted]

Other thoughts--does new job allow him to work at home? Flexible schedule?

I am somewhat dubious of "independent contractor" jobs as they are often illegal ways for the company to avoid taxes. A legit contractor job through a contracting company is a different story.

And remember he will have to pay what used to be the employer share of payroll taxes--somewhere around an extra 6-7% (not sure what current is)

[phunluvin82]

Lol...yes, I am SO glad he didn't quit without another job. And I'm also glad he doesn't have to keep going to a job where he is not happy.

We haven't looked into individual ins plans for him, but we definitely will now that I found out how expensive it will be to add him!

I'm not sure how much negotiating room is still left, but he said he's going to think about whether to ask for more $ to cover ins costs. He has already done a fair amount of negotiation with this, so I think he's a little bit concerned about pushing too much...so I'll leave that decision up to him.

[phunluvin82]

Oct 10, 2012 12:50:09 GMT -5 @kcpokergal said:

Other thoughts--does new job allow him to work at home? Flexible schedule?

Yes, it will be pretty flexible. He'll also be doing some traveling which will all be paid for and have a generous per diem.

I am somewhat dubious of "independent contractor" jobs as they are often illegal ways for the company to avoid taxes. A legit contractor job through a contracting company is a different story.

And remember he will have to pay what used to be the employer share of payroll taxes--somewhere around an extra 6-7% (not sure what current is)[/quote]

These are exactly the types of concerns I have with this. I am so used to the traditional big company job situation, where taxes, ins, and retirement are all taken out of our checks, and I don't have to really worry about it. This is a whole other animal IMO.

[LoveTrains]

If he is a 1099 independent contractor, he will be paying an extra 6.2% in self -employment taxes. That $9K raise no longer looks so good.

[kellbell191]

I think having a new job he loves that doesn't require you guys to take a big financial hit is awesome. I get the uncertainty, I am also very risk averse, but it sounds like this could work out well.

I am still concerned that with his job issues and money management issues you have an underlying ADD thing going on and without treatment getting sick of his job will be a recurring theme for you all.

[kellbell191]

BTW the fixation on this being his dream job and how awesome the entire world will be when he takes it, without concern for the nitty gritty financial implications is yet another ADD symptom.

[sprky79]

I think that you might have to eat this one. He got a comparable paying job. More risk, but by the time you take out taxes, etc. its comparable pay.

I get that not having a decent stockpile of money worries you GREATLY. And I'm not saying you are wrong. But I think you have to let this one go. If its not the right place he can get something else.