Should I change careers?

Discussion in 'Career Advising' started by spinnaker, Mar 14, 2019.

  1. DickCappels

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    Aug 21, 2008
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    The T-shirt angle got me thinking. When we start out we take a job somewhere in the field in which we are interested, usually in our 20's. As time goes on we steer careers along with an aim toward our ultimate goal. Then at some point in time, maybe in late 20's or our late 30's the difference in pay between starting in a new career and what we can earn by continuing in the current career combined with increasing financial obligations like a mortgage, car payments, children to raise, etc. we are trapped in that career.

    You on the other hand are in the envious position of not having a lot of financial obligations and are in a position to consider something that usually pays less than your current job, or if you want, switch to a whole new career and start over. You lucky guy. Do you realize how many people would like to be in your shoes?
     
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  2. spinnaker

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    Oct 29, 2009
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    Only one obligation. A new mortgage. But it is actually pretty small. Though I do really consider myself lucky. I have been in a good position for the past several years. Of course much of that had to do with hard work and self control.

    Mentioned it before but now I sort of lament that I did not put more into tax free 401k as opposed to traditional investments but as I look back it sure was nice knowing I had funds I could tap and not be penalized by the IRS.
     
  3. jpanhalt

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    Jan 18, 2008
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    Those two posts are inconsistent. My point is that stress and poor memory go together. The three D's, drugs, dementia, and depression, are common causes of poor memory. I am assuming it is not the first two.

    If it is the first, including alcohol, that is for you to address. If the second and given your apparent age, it is probably one of the presenile types (Alzheimer's is one of those types for which most people recognize the term), and there is not much that can be done. Certainly, changing your job with that condition would be ill advised.

    So, I assumed it was stress and/or depression for which your current job might be a contributor. If your job is causing so much stress and depression as to affect you life, memory and personal interactions, it is time to change.

    Both in this thread and in others, such as the one I quoted from, you seem to come up with a sincere question, then react negatively to and/or ignore equally sincere responses. Trying to help you has proved to be quite frustrating.
     
  4. pmd34

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    Feb 22, 2014
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    Well you need to sit down and do the sums and see if there is a possibility of breaking even with the T-Shirt job but if so, I would say go for it! My thoughts on the lab tech job are that even if you get the job its the same anx. just a different view!
     
  5. Travm

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    Aug 16, 2016
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    +1 for T-shirts
    likely a fun job to continue with into retirement as well
     
  6. Raymond Genovese

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    Mar 5, 2016
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    "into tax free 401k" what are those and why don't I know about them? Do you mean a Roth where earnings (from the funds deposited) are not taxed, but the funds deposited are taxed? In contrast to more traditional 401K plans that are tax-deferred?

    Since you are openly asking and since I can openly say that I have no freaking idea what you should do, I am going to opine two points.

    1. Go see a legitimate financial planner. If you already have, go see another one and maybe even a third. You may always be worry-prone (see thread about stocks earlier, for example), but knowing exactly where you stand financially - as exactly as you can be, even if you have to start running Monte Carlo simulations, should give you some peace of mind.

    2. In my view, your happiness thermostat (happystat?) has a lot of inertia to keep it where it is at, given your age. You can certainly see it decline in the face of health problems and other stressors and you can see it increase if you can mitigate those factors, but you are not a young man. Embrace your accomplishments, most people on this planet have far less..

    So, stay in your job unless it is is causing you serious health issues beyond a regular feeling that it sucks. You earned the right to get that wage and leaving it to earn much less under the impression that you would be that much happier sounds risky. In a sense, I don't think you would ask if you were dead serious about leaving. T-shirts and other career changes can definitely be in your plans. They can be a part of a "phased retirement" concept. They may make make good sense in a year or two, but the wage cut...well, again, see #1.
     
  7. spinnaker

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    Should have said tax deferred.
     
  8. JoeJester

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    You will be taxed on the tax deferred money but not on the interest.

    Make sure your old enough to not incur the 10% additional penalty on withdrawls.

    Other than that ... best of luck in your endeavors. Don't forget sports teams need shirts. Bowling, billiards, softball, et al.
     
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  9. spinnaker

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    Already old enough. ;) But I have been prepared for the past several years to be able to draw from my investments if the worst happened. I had traditional investments not subject to Uncle Sam's penalties (other than him stealing about 15% every year on the gains that is ;) ).
     
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  10. Raymond Genovese

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    Mar 5, 2016
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    I am either not following you when you say "You will be taxed on the tax deferred money but not on the interest.", or if I am, what you are saying is incorrect, as far as I know.

    In a "traditional" 401K (as well as a traditional IRA), your contributions are tax-deferred. When you make the contribution, the contribution is not taxed at that time - sometimes called pre-tax. When you make a withdrawal, that money (the entire withdrawal or distribution) is taxed as ordinary income (with a few exceptions). That is, a withdrawal, or distribution, from your 401(k), will be taxed on the tax-deferred money AND on the interest that the tax-deferred contribution earned.

    A Roth 401(k) is different. There, the contribution that you make is taxed. There is no tax-deferral at all. The withdrawal/distribution is not taxed (as long as it is qualifying https://www.investopedia.com/terms/q/qualifieddistribution.asp). That is, the interest earned on your contribution is NOT taxed (note that if your employer makes a matching contribution, that part is basically considered pre-tax).

    What investment vehicle are you referring to where the tax-deferred amount is taxed at withdrawal but not the earned interest? Except a 401(k) where the investment itself (that is the contributions) is used solely to purchase tax-exempt bonds (which was not part of the discussion, but which people do especially if they anticipate being in a high bracket during withdrawal time), I don't know what you are referring to in that statement, "You will be taxed on the tax deferred money but not on the interest."

    All of the qualification and rules governing 401(k) and IRA distributions are important (e.g., https://www.investopedia.com/articl...61915/how-your-401k-taxed-when-you-retire.asp), including the mandatory withdrawals (at a certain amount linked to your end date) and can have a considerable impact in retirement. This is one reason why it makes sense to use a financial planner if you do not want to DIY - or even just to have someone check your DIY plan.

    Income earned from non-401(k)/IRA investments can be subject to capital gains as the TS noted. I would also remind the TS that he can start an IRA today, if he does not have one. and he is eligible to also make the over-50 catch-up-contribution - traditional or Roth.
     
  11. dl324

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    I think you'll find age discrimination to be a big obstacle to getting a different job. Why would a potential new employer give the job to someone close to retirement when they can hire a younger worker who might stick around for more than a few years?

    If it were me, I'd stay at your current job (assuming you're at the high end of your pay range) and start planning for what you'll do in retirement.
     
  12. JoeJester

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    Raymond, you will be taxed on the "tax-deferred" money you withdrawl. Since your needs are "reduced", your withdrawls will be smaller and your taxable income will be smaller.

    Roths, on the other hand, are taxible at the time of earned.
     
  13. jpanhalt

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    Me thinks you have ignored the effects of MAGI and Medicare "adjustments" (IRMA). I retired before 65 years ago. Commercial insurance in the interim was $thousands less than after I went on Medicare, but I had no choice.
     
  14. JoeJester

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    Isn't government run healthcare grand....

    What do you think will happen if they have medicare for all? Who is going to pay that further increased copay?

    When you first heard about 401(k)s and Roths, people are sold on the fact that the 401(k) money is taxed upon withdrawl. The Roth cash is not taxed upon withdrawal as you paid the tax up front. They are not going to let anyone skip out on taxes.

    I'm betting my social security will have some value taxed till the day I die.
     
  15. spinnaker

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    Can we stay on topic please?
     
  16. spinnaker

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    These are my thoughts too. Then again employees don't stick around long today anyway. But I will likely stick Even though I cannot freaking stand it much longer. But when I look around the world, I realize how fortunate I am to have a jobe and live in a country where there is so much opportunity. I guess I can deal with it. Though all things are realative I guess. ;)
     
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  17. pmd34

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    Feb 22, 2014
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    I'm disappointment I thought you were going to be an inspiration to us all and go for the T-Shirt job... :(
     
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