Friday, February 09, 2007

Thoughts on our move and career plans for the Makingourways

After several grueling weeks of contract negotations, my wife's prospective employers decided to actually read the contract changes proposed by our attorney and then found most of them not only acceptable but improvements to their executive contract template -- I wonder if I should forward his bill to them?

We have a strong feeling the country bumpkin lawyer representing my wife's potential employer first dismissed the changes - causing the company's leadership to dismiss them until they actually read the recommendations.

As they agreed to virtually all the changfes - all 25 - we are expecting a revised contract any day now. If the changes were not corrupted by their company's attorney, she might actually sign the contract.

This will resolve the question as to whether we should stay or move to Southern Virginia, Chicago or Atlanta. The next step will be planning departure, finding a new house in IL, planning the move, etc....

The Atlanta opportunity was quite interesting, incredibly well run, but ultimately there offer didn't seem as generous or enticing. My wife felt all the hard work had already been done in Atlanta, whereas the Chicago opportunity will be a chance to shape the business. I applaud her desire to build something meaningful.

I expect we will move around mid-year, take a vacation in July and my wife would start work later in July or in August.

This might actually help our annual income picture a bit as she will have her current (higher) salary for another month.

Once we move to Chicago our finances will be quite different. Our overall income will decline about $75k, but still be higher than last year's income.

We'll have one time expenses for the move and a month without income for my wife.

Everyday expenses will change:
  • Groceries - similar if not cheaper
  • Property taxes, much higher, but offset by lower state income taxes (8.25%->3%)
  • Mortgage, much bigger - another $1,500 to $2,500
  • Insurance - higher
  • School - Montessori school will probably be more expensive
  • Nanny - about $25k per year

I'll have to create a detailed model on overall effects. I would still like to max out retirement savings, put at least $15k away for 529 plans (shooting for $20k), max out non-deductible IRAs (for later Roth conversion) and save at least $48k after tax.

How far we'll get, I'm not sure yet, but we'll find out. In our current circumstances, I plan to save about $16k this month and $7k next month.

Regards, makingourway

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