Cash Money Life

Just over a year and a half ago, my wife and I were wed in a small church ceremony in her parent’s home town. It was a beautiful August day, and it was everything we could have hoped for. We had all of our close family and friends in attendance, and everything went smoothly… even though my wife and I live over 450 miles away from where her parents live.

My wife’s family was amazing in helping make our wedding beautiful, and it would not have been possible without their generosity and assistance. They helped with organizing and planning the day, providing wonderful music, and creating programs, menus, and decorations.

Organizing and Planning

Because my wife and I live almost 500 miles from where our wedding took place, we needed a lot of logistical help. My wife’s parents took a lot of time out of their schedule to scout out several locations for the wedding reception and the rehearsal dinner. My wife and I drove out there a few months before the wedding to make the final decisions. But without their assistance, we would have been lost.

My wife’s parents also helped us narrow down several choices for flowers, the cake, the jazz trio for the reception, and an organist for the wedding ceremony.

Wedding programs, menus, and more

My wife’s sister is a graphic designer. She volunteered her services to design the wedding programs, and she designed and made menus and place cards for the reception dinner. She also helped us select our wedding invitations. We ordered the invitations through the company she works for, and even though she didn’t design them, she was able to get us a nice discount!

Music

My wife’s family is very musical and several family members performed before and during our wedding ceremony. Before the service, my wife’s cousins played the flute, and her brother played the piano. During the wedding ceremony my wife’s sister and sister-in-law sang a beautiful song while accompanied by my wife’s brother. The gift of music they gave us added a personal touch that we will always remember.

We are very thankful for their help

My wife and I sincerely appreciate her family being so involved in our wedding. In my opinion, it was the best gift they could have given. The best part is, they wanted to be a part of our special day as much as we wanted them to be a part of it. I think that is what makes weddings so beautiful - they bring families together in many different ways.

If there is any wedding advice I can give, it is this: Involve your family in your wedding plans. They have a wealth of love, talent, and advice to help make your day brighter and more beautiful.

~

Do you want to read more wedding tips? Check out the current feature on Moolanomy - The Best Wedding Tips and Stories. Share your story at Moolanomy for a chance to win $50.

The economy is tough right now. Gas and food prices are going through the roof, energy and housing prices are rising, and many people are struggling to make ends meet.

When times are tough, making early withdrawals from your retirement funds can seem like a quick source of cash. It is. But it can be an extremely expensive source of quick cash. Many people don’t realize that making early retirement withdrawals can hit you four times at once!

Taxes

The first thing that is going to get you is the taxes. Qualified retirement plans such as IRAs and 401(k) plans (and others) have some nice tax advantages. When you make an investment into a Traditional retirement plan such as a Traditional IRA or Traditional 401(k), the money is not taxed until you withdraw it. This is designed to allow you to invest more money upfront and give you years of tax free growth. When you withdraw that money early, you lose that tax advantage and must pay the taxes immediately.

Early Distribution Penalties

Early distributions from an IRA, 401(k), 403(b) or other qualified retirement plan are subject to a 10% early withdrawal penalty. That means not only are your withdrawals taxed, but an additional 10% is taken from the withdrawal to pay the penalty. Double-whammy!

Less Money for Future Growth

Compound interest is the most important thing you have working for your retirement. The more time that compound interest works in your favor, the more money you will have when you retire. Here is a nice illustrated example of how much compound interest can work in your favor.

Possible Market Losses

If your retirement account holdings have depreciated, not only will you have to pay taxes and early distribution penalties, but you may be paying them on less money than what you originally invested. Overall, the markets have not done very well the last year or so, and it is possible that some of your investments have lost money. Leaving the money in your investments gives them time to appreciate and not only regain their previous value, but hopefully appreciate beyond your original investment.

Stay the course. If at all possible, try to avoid withdrawing your retirement funds for short term needs. There may be other ways to get the funds you need, such as working overtime, taking a part time job, or raising funds by having a yard sale or selling unneeded items on eBay.

OK, this isn’t really a story… it’s more of a decision I need to make, and soon! Last week I received job offers from two companies, and I need to make a decision by this Friday. I’ve been thinking a lot about the job offers since I received them, and yesterday I wrote about factors to consider when evaluating a job offer. Now I am going to share with you a little bit about the job offers, and the factors that are important to me.

Evaluating the Job Offers

When I wrote yesterday’s article, I broke down the evaluations into 10 different factors to consider, though there can easily be many more than that depending on your situation. To make the comparisons in this post easier, I combined a few related factors together.

Job Position & Professional Opportunity. Both positions represent a great professional opportunity for me. The main reason I was looking for a new job was because I felt I had stagnated in my role with my current company and there was no room for me to grow in the direction I wanted. These new job offers represent a nice promotion in terms of scope responsibility. The job offers are fairly similar to each other and I know that whichever offer I choose, I will have plenty of opportunity for future growth.

Commute and Travel Requirements. The commute for both companies is very reasonable. Each is within a 30 minute drive, which isn’t too long and won’t cost too much for fuel. The travel requirements for both companies are practically nil. So neither of these issues will have much bearing on my decision. However, they could have if the commute was very long or if the position required too much travel.

Work / Life Balance. There is an important difference between the two companies. Company A has a rigid 8-5 work schedule with an hour lunch break, while Company B has a 40 hour per week requirement. The hours for Company B are stated as 8-5, but they don’t mind if you come in an hour early, stay an hour late, or take a few hours personal time - as long as you work the required 40 hours per week. There is also the ability to work from home for a few hours from time to time (for instance, if I had a plumber coming by and had to be home).

Salary, Compensation, and Benefits. Both jobs have similar health care plans. I will end up paying a little more than I am with my current job, but based on the professional opportunity and the potential pay raise I will receive, it will be well worth it. Both companies also offer tuition reimbursement, which is something my current company does not offer. The 401(k) plans for each employer offer the same company match, but the funds they offer are different. Vacation time and sick time plans are the same in terms of number of days, but one company separates the two, the other company places them in one pot of days off.

Here is where the offers differ:

Job Offer A. The most attractive part of this job offer is a 40% bump from my current salary. The tuition assistance this company offers is $5,250 per year.

Job Offer B. The salary for this job offer comes in at right about 32% higher than my current salary. Company B offers $10,000 tuition assistance per year, although anything above $5,250 is subject to income taxes (Federal law). Company B also has a pension plan in which I would contribute 3% of my post tax income, and would receive a 1.5% match.

Company Culture and Health. Here, the two companies vary substantially. Both companies are financially healthy and well-respected, but the culture between the two is very different.

Job Offer A. Company A requires a suit and tie M-Th, and has “casual Fridays,” when employees can wear polo shirts or button down dress shirts without a tie. Slacks (not jeans) are required on casual Fridays. The dress code is more formal because it is in a client facing environment nearly every day. The company’s reporting structure is very hierarchal and formal.

Job Offer B. Company B’s dress code is slacks or khakis and a polo or dress shirt; no tie required. There are some days when a tie and jacket may be required, but I hear they are rare and only if you are meeting with clients. Jeans are allowed on Fridays. The company structure is more team based and not nearly as formal.

To sum it up

Both companies offer a great professional opportunity, room for growth and promotion, reasonable commute and minimal travel requirements, good health care benefits, similar 401(k) plans, and the same number of days off.

The main differences are these:

Company A: 40% pay raise, $5,250 tuition reimbursement, formal company structure, formal business attire, rigid 8-5 schedule

Company B: 32% pay raise, $10,000 tuition reimbursement, informal company structure, business casual attire, flexible schedule, pension plan

No decision yet, but I’m leaning toward one company. I haven’t accepted either offer at this point, but I have until Friday to sign and fax the acceptance letter. I will make the decision with my wife, but we are both leaning toward one offer more than the other. If you know me, I bet you can guess which one I will choose.

Last month I mentioned I was interviewing with two companies. Well, I have great news - I received job offers from both companies last week! Now I need to make a decision between them, and quickly. One of the offers is only good until this Friday because they need to get the position staffed ASAP.

The positions are fairly similar on several levels, and on other levels they are very different. But there is a lot involved when evaluating a job offer, so I thought I would share some of the factors I am considering while I am making my decision.

Evaluating a job offer

Job / Position. How does this job fit into your long term career plans? Is this job offer for a job or a career? In my opinion, a job is usually a short term means to an end; a task you perform in exchange for money. A career is a chosen profession that often takes development and planning. Other factors to consider: job title, responsibility level, number of people you manage, reporting structure, etc.

Opportunity. Do you have the chance to grow as a professional and individual? Will you have a chance to make decisions, lead or manage groups, is there promotion opportunity, and can you learn skills that are easily transferable?

Company health. How healthy is the company giving you the job offer? Do they have long term contracts or long standing relationships with their customers? Are they having financial difficulties? You will probably already know some of this from your research prior to your interview, but if you have multiple job offers, you can compare the companies to each other.

Work / Life Balance. Quality of life is one of the most important things to me and to a lot of other people. Will you need to carry a pager or cell phone over the weekend? Do you have rigid work hours, or can you work flex time? Can you work from home part of the time? Will you be required to work night shifts, or weekends and holidays?

Commute. How long is the commute? Long commutes can have a negative impact on both your health and your cash flow - especially with these rising gas prices. A long commute also cuts into your quality of life because it takes you away from your family longer every day. In my opinion, the shorter the commute the better!

Company culture. Is the company culture stiff and uptight, jeans and a t-shirt, or somewhere in between? Do people hang out together after work, have frequent happy hours, or participate in intramural sports teams, or is it primarily a culture of “go to work, go home, repeat?” Other factors to consider: company organization, corporate structure, dress code (I know people who refuse to wear a suit and tie everyday!), etc.

Travel. Are you required or expected to travel? How far and how often? Personally, I don’t mind the occasional business trip, but I wouldn’t like being on the road every other week, or for an extended period of time.

Benefits and perks. I will separate benefits from salary, even though they are closely related. One of the most important factors to consider is whether the health care package meets your needs. Other important benefits: 401(k) plan, pension plan, vacation time, sick time, disability, life insurance, tuition reimbursement, sponsored day care, etc.

Salary / Compensation. Compensation covers a lot of factors; the salary you earn as direct compensation is only part of it. You also need to consider factors such as a commissions, bonuses, stock options, and projected salary increases.

Choose what is best for your situation. Accepting a job offer is about more than just accepting a salary. There are many other factors that are just as important, if not more important, than the final number on your paycheck. In the end, you have to do what is best for you and your situation - even if that means leaving salary or other compensation on the table. If you dread going to work each day, you will be miserable, and that isn’t worth any price.

Your tips… Do you have any tips for evaluating a job offer, or are there things that are more important to you when you decide between jobs? I’m interested in reading them - I have a decision to make very shortly! Feel free to leave a comment!