SWITCH!!!!!

The new job gives you a 9k a year spending raise and a 550k bonus….

Here is the math and reasoning using 100k salary as a base because it’s just easier.

Current job 401k: you put in 6k a year and they match 3600…increase every year based on new salary….105k = 6300 and they match 3780

New job: 110k a year….you put in 11k because that is the value of your raise. On that 11k you get a match of 11,000 on the first 5,500 you put in and then 5500 on the next 5500.

The new job is paying you 16,500 a year into retirement for your 11k you put in. You are getting a GUARANTEED return of 150% on every dollar you put in that account. If you keep it in CASH with no investment rate…over 25 years….that’s 412k in free money.

Pension plans are NOT guaranteed and can be taken away at anytime. Once you have money in your 401k it is yours forever.

I have no idea what you are currently doing for retirement but let’s assume you are doing the max 6%. That’s 9600 a year into 401k and you live on 90k a year before tax. Value of retirement account at 60 if you are 30: 288,000 with no growth and no raise in salary

New job: value of contributions 27,500 a year and you live on 99k a year. (9000 raise for yearly spending) value of contributions from 30-60 years old: 825,000 dollars.

Switch now