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Considering he would only take home about $50k from that $100k, I bet many of us would have done the exact same thing.

godelski 5y ago
Plus you have to consider the value. What does that extra $50k get you? I mean besides a higher bank account score? You're already making $300k/yr and living very well off. Does the extra spending power get you much more? It seems return on value is diminishing. If you're away frequently you won't be able to spend that money (well your family can). How much do you value time with your family? I'd rather have that money to spend _with_ my family than _on_ my family.
- devmunchies 5y ago
  The hidden value could be the higher title that you could sit on for 3 months and leverage it into another 100-200k gain by jumping to another company with the higher title.
jkic47 5y ago
I agree - I am fortunate to be in a state of life where there is nothing I want that I can't afford (not because I am rich, but because I am satisfied with what we have). Another $xxx K is money that will go into a bank that I will probably never spend - not worth it to me.
Tydirian 5y ago
If they are in the US they are going to pay ~30-35% depending on married vs. single for income from $300-400k (less on the first $300k). This is also all income they could invest given they don't need it to support their lifestyle. Even it it were only $50k this is huge since they could accelerate retirement because it would increase the amount they invest annually by 2-3x. It's a lifestyle choice for sure but this money would have a significant impact.
- TameAntelope 5y ago
  $50k/yr doesn't really accelerate retirement as much as it would seem. You probably spend at least some of that on lifestyle creep, and if you're at $300k/yr already, you've likely already gone about as far as you can in tax advantaged savings sources. I'd probably still take it, but I'll admit I'm a bit more money motivated than the average person.
  - lazide 5y ago
    If you’re comfortable-but-barely-stable relationship wise, that extra money would cost you a whole lot more in ensuing legal fees. Not counting the emotional pain and suffering.
    - paulryanrogers 5y ago
      Are you saying the extra money and travel could contribute to divorce?
      - lazide 5y ago
        I’m saying extra money in exchange for instability/changes and less work life balance can easily strain even previously rock solid relationships that are solidly in agreement about and aligned towards those goals. if someone has a relationship where there are not shared goals of more money and change/excitement? Well, if you think you’d end up ahead on the money side at the end of that fallout, you’d be fooling yourself.
  - dpark 5y ago
    That’s nonsense. You certainly could spend that on lifestyle creep, but you don’t have to (and probably shouldn’t). Investments also do not have to be tax advantaged to be lucrative. Your argument about an extra 50k could be applied to literally any raise.
    - TameAntelope 5y ago
waterlaw 5y ago
This exactly. In a 52% tax bracket in Canada. Factor in sales tax. That's a 65% tax on new income. No point in getting a raise. Particularly, because the employer is going to expect >$100k in value from the employee to make up for the raise and the employee barely receives half. The middle class is being destroyed through taxes and inflation, while wealthy asset holders see their assets outpace inflation while taxed at much lower rates.
- azth 5y ago
  And some people still think it's a good idea to raise taxes. Quite baffling really.

Plus you have to consider the value. What does that extra $50k get you? I mean besides a higher bank account score? You're already making $300k/yr and living very well off. Does the extra spending power get you much more? It seems return on value is diminishing. If you're away frequently you won't be able to spend that money (well your family can). How much do you value time with your family? I'd rather have that money to spend _with_ my family than _on_ my family.

devmunchies 5y ago
The hidden value could be the higher title that you could sit on for 3 months and leverage it into another 100-200k gain by jumping to another company with the higher title.

jkic47 5y ago

I agree - I am fortunate to be in a state of life where there is nothing I want that I can't afford (not because I am rich, but because I am satisfied with what we have). Another $xxx K is money that will go into a bank that I will probably never spend - not worth it to me.

Tydirian 5y ago

If they are in the US they are going to pay ~30-35% depending on married vs. single for income from $300-400k (less on the first $300k). This is also all income they could invest given they don't need it to support their lifestyle. Even it it were only $50k this is huge since they could accelerate retirement because it would increase the amount they invest annually by 2-3x. It's a lifestyle choice for sure but this money would have a significant impact.

TameAntelope 5y ago
$50k/yr doesn't really accelerate retirement as much as it would seem. You probably spend at least some of that on lifestyle creep, and if you're at $300k/yr already, you've likely already gone about as far as you can in tax advantaged savings sources. I'd probably still take it, but I'll admit I'm a bit more money motivated than the average person.
- lazide 5y ago
  If you’re comfortable-but-barely-stable relationship wise, that extra money would cost you a whole lot more in ensuing legal fees. Not counting the emotional pain and suffering.
  - paulryanrogers 5y ago
    Are you saying the extra money and travel could contribute to divorce?
    - lazide 5y ago
      I’m saying extra money in exchange for instability/changes and less work life balance can easily strain even previously rock solid relationships that are solidly in agreement about and aligned towards those goals. if someone has a relationship where there are not shared goals of more money and change/excitement? Well, if you think you’d end up ahead on the money side at the end of that fallout, you’d be fooling yourself.
- dpark 5y ago
  That’s nonsense. You certainly could spend that on lifestyle creep, but you don’t have to (and probably shouldn’t). Investments also do not have to be tax advantaged to be lucrative. Your argument about an extra 50k could be applied to literally any raise.
  - TameAntelope 5y ago

waterlaw 5y ago

This exactly. In a 52% tax bracket in Canada. Factor in sales tax. That's a 65% tax on new income. No point in getting a raise. Particularly, because the employer is going to expect >$100k in value from the employee to make up for the raise and the employee barely receives half. The middle class is being destroyed through taxes and inflation, while wealthy asset holders see their assets outpace inflation while taxed at much lower rates.

azth 5y ago
And some people still think it's a good idea to raise taxes. Quite baffling really.