Friday, September 01, 2006

strategic update: health event - out of town job

A few major points:

  1. We have another child due end of Sept. We are looking forward to the special day (whenever it comes).
  2. I am considering a Chicago based job. There is not certainty that I'll get it, but it would cause us to relocate once again. I have talked with the company in the past and received an offer - which I was unable to accept at the time. There is a 50/50 chance this will materialize.

The economic consequences of having another child? I have estimated the temporary reduction in cash flow will be about $33,000 due to family leave assuming we:

  • hire a nanny for help on an ongoing basis (est. $300/week - possibly higher)
  • take a moderate vacation with entire family before year's end (to the degree we can travel with a newborn)
  • receive an aggregate of 3 weeks vacation and 2 weeks advance vacation (from next year) from current employers
  • take additional time off through year's end

If I can start a new job by the beginning of November, I should be able to lower the $33k reduction in cash flow by an additional $15k - $30k. It will depend upon many different factors.

However, if I obtain the Chicago based job an avalanche of change will happen:

  1. relocation issues
  2. new job for wife - may not pay as well, but my increase will offset
  3. 6 month commute until family moves - say April next year
  4. buy short term Chicago condo
  5. sell house in NC
  6. buy house in Chicago - 3,500 sq. foot house in good school district $800k - $1.xM
  7. find montessori or similar school for children - more expensive, probably
  8. I'm going to really miss my wife and kids - imaging fly out Sunday night and back Thursday night

Have a wonderful weekend,



mOOm said...

Why would you buy a condo in Chicago? Surely cheaper to rent for a short period?

makingourway said...

Good question, moom!
I'd buy the condo for several reasons:

1. My family could be delayed in moving by up to 6 more months for a total of a year. I'd rather live in something I own.

2. I'd only buy it if we were definately moving to Chicago, in which case, it would serve as a nice downtown residence, since we'll probably live in the suburbs.

3. If I no longer found it useful to keep, I would rent it out. I'm comfortable and familiar with land lord's obligations.

More info:
my target property would be about $250k, $300k max. Something we could afford to keep in addition to a house. Also, if I had to sell it after a few years, the brokerage fees wouldn't be too painful. More likely we'd hang on to it and keep it as a city house to encourage us to leave the suburbs and enjoy the symphony, theater, etc....