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There are many factors to consider when comparing job offers – the salary and be
There are many factors to consider when comparing job offers – the salary and benefits, the taxes, the
cost of living, the cost of leaving, and other costs incurred by taking the new job. Here are three job
offers for similar types of work for which you are eminently qualified. You currently hold the job in
Silicon Valley, but you are considering choosing the offers elsewhere.
Location Silicon Valley, CA Seattle, WA Austin, TX
Salary Offer $250K $200K $150K
Retirement Benefits 8% contributed by
employer
6% contributed by
employer
7% contributed by
employer
Other Benefits Stock option worth
$200K
Tax Rate 13% 12% 7%
Cost of Living 60% above national
average
40% above national
average
20% above national
average
Cost of Leaving Not vested yet. You
lose 4 years of
retirement accrued
To break the contract
will cost $50,000
penalty.
Not vested yet. You
lose the stock option.
Relocation Costs Up to $10,000
reimbursed
Up to 4% of salary Compensated an
amount of $3000
You currently spend around $6000 per month in living expenses; you would live a similar lifestyle
wherever you work. Project your total earning for five years into the future whether you stay put or
take one of the other job offers. Which scenario provides the greatest accumulated earnings after five
years?
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