Well I’m clearly doing something wrong, since you lost me at the part where you’re still in the 12% tax bracket.
also, if you really want the job, set some kind of minimum , which is going to be bewtween their (0.88 X) offer and your (1.23 X) request. Tell them, “I’m confident I’m worth 1.23 X. If you can get to [number] X this year with a plan to get to 1.25 X next year, I’ll take the job. If not, our negotiation will be finished and I wish you the best in finding a candidate who can fulfill your financial limitations.”
The second half of my reply said:
I’m not looking for higher compensation, I am looking for a role that offers increased job satisfaction. But I believe that a salary closer to $X is necessary to keep the compensation similar. Please me know if this counter-offer or something closer to it would be amenable.
Sincerely,
Klaymen
I get at least 28 vacation days in either position. The salary would be 5% higher. But naturally I am doing a thorough comparison of ALL the money that would be coming in and then netting out all the money I would be paying out for benefits. And since my friend works there, he was able to estimate a bonus % of salary for me. Apart from a different position, the only real benefit is working from home everyday and that is probably only a $300/yr savings. (Maybe less since I have to use the basement fireplace more in the winter)
My company allows me to defer income. So let’s say after I pay for benefits and max out my 401k and HSA I still have $150K left and my tax situation is simple so I get a $28K standard deduction, leaving me with $122K of taxable income. $33K gets taxed @ 22%.
The solution is simple, I get to choose to defer at least $33K into an account and voila 12% tax bracket. The $33K grows like a 401k and I am choosing to receive it over a combination of 5-yr and 7-yr increments after I quit my job in a few years. It is my pre-SS SS.
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That doesn’t sound legal (tax-wise). IANATA.
Also, wow, saved $3000. Good on you. /s
It sounds like the deferred compensation plan at my company. I don’t participate in it, because my kids make me poor for the time being, but I intend to if/when the math makes sense.
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Ugh I’m so jealous you have access to a non qualified deferred comp plan
Maybe you can leverage leaving for a direct report at your current job. Would that improve job satisfaction to a level you would not consider leaving? Or will the new product rollouts doom any chance of you staying?
I found it hard to use mine, too far away from retirement to play the marginal tax game and lock up money with a bunch of rules.
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I’ve tried making the case before that they should have more than just me at the helm, but I’ve (mostly) stopped worrying about it. If they want to implement slowly and have nobody trained when I leave someday, they can’t say I didn’t warn them.
The countrywide rollouts are not going to be the end of the world. In eight years I can count on one hand the number of times I needed to stay late to finish something. if they wanted it done faster they would hire someone else, but the mantra has always been just do the best you can. I do, and that has sufficed. Part of me would like it to be more productive, and part of me if acknowledging that it’s OK to coast, and it’s going to get easier to think that as the days pass…
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I can imagine. At my company the deferred amount can be paid in 3, 5, 7, or 10 years after leaving the company. If you’re socking away money at 35 and you get a better job at 40 and leave the company, all that saved up money is going to come right back to you and get taxed highly still.
Hold on,
They actually low-balled your initial offer by 35%?
What state is this.
I didn’t make any sort of initial offer, although I was completely frank with them about my existing compensation.
Salary X
Bonus 0.17X
Stock/Options 0.13X
401k Matching 0.03X
Retirement Contribution 0.06X
ESOP 0.01X
Benefits Contribution -0.02X
TOTAL 1.38X
Their offer
Salary Y
Bonus 0.05Y
Profit Sharing 0.06Y
401k Match 0.04Y
Benefits Contribution -0.10Y
TOTAL 1.04Y
Now I can tell you that Y = 1.08X, so I’m making 1.38X and they are offering 1.12X, hence the 1.23Y counteroffer.
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Can definitely relate lol
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Does your current bonus vary much around 17%? Gaining or losing the volatility could have some value to you
Not much, and when it was lower the stock/options were higher. Reducing that volatility is not a concern, although good point I half expected someone to ask. And as I stated earlier in the thread, this doesn’t even consider my ability to keep taxes low, although to be fair the company that wanted to hire me was trying to do the same thing 
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Thanks for expanding on that. That makes more sense.
I have seen this over here in the UK as well (higher salary but poor bonus), and while salary is obviously permanent and bonus is not, its practically unheard off to not get a bonus. They aren’t super volatile either (75% - 125%) of target.
They increased the offer to 1.08Y
So it’d still be a pay reduction, is that right? From your current (1.38 / 1.08)Y0 to 1.08Y0 (where Y0 = original offer)