3 ms·

This is what’s called the “golden handcuffs “. You want to leave but the current job is pretty good and you likely won’t be able to find something better.

paxys 2y ago
"I want to leave but I have $2.5M worth of RSUs vesting in the next two years" = golden handcuffs. "I want to leave but if I do I may not be able to find another job and may not be able to pay rent" is instead the reality most Americans face.
- charlie0 2y ago
  Golden handcuffs only happen because of lifestyle inflation that prevents you from building F U money. $2.5M is more than enough to retire on.
  - auntienomen 2y ago
    You can't retire until you get the $2.5M, and your employer isn't going to give it to you if quit early. That's what makes it handcuffs.
    - charlie0 2y ago
      Vesting period is generally 4 years, so while you're right, 4 years is a very short period of time to wear the cuffs.
  - marcuskane2 2y ago
    > $2.5M is more than enough to retire on For a single, childless person who wants to live a lower-middle class lifestyle in a low cost of living area, sure. But if you want to live in a decent location, you're looking at needing at least a million just for a house. That leaves 1.5 to generate income, so at a 3% safe withdrawal rate that's $45k per year. After taxes that's now like $35k. And you're not getting health insurance from employer so budget $6k per year for premiums (and be ready to pay out up to $6k per year more if you end up in the hospital). So in the end, you've got something like $20k-$29k per year to live on. That covers groceries, car maintenance/insurance/payments, upkeep on the house, phone, etc sufficiently for one person. But you're probably not joining your friends on their ski vacation or even going out for drinks with them too often. And of course, the whole thing falls apart with a family. The average cost of health insurance for a family of 4 is $24,000 per year.
    - charlie0 2y ago
      Ah, the type of person to starve because their plate of food doesn't include caviar.
    - jjav 2y ago
      > not getting health insurance from employer so budget $6k per year FYI when I took some time off, I had to pay ~$3500/month for health insurance for a family of three (and of course still pay deductibles and out of pocket costs). Health care insurance in the US is unimaginably expensive.
      - charlie0 2y ago
        Just looked up ACA. For 45K income per year for house of 4, Silver plan ~400 - ~800 a month. How are you paying $3500/month? COBRA?
keyle 2y ago
No, golden handcuffs are when you're in for a massive payout if you stick it. In this case, this person is trapped. So just regular handcuffs.
- fsckboy 2y ago
  The person is not even trapped. The person is worried about the prospects for the economy and they feel better security staying where they are then moving, a move they'd be completely free to make.
steve_taylor 2y ago
That's not quite it. Golden handcuffs refer to financially significant unvested shares or options (e.g. RSUs) that you will forfeit if you leave the company. Some companies include quarterly RSUs as a significant percentage of total comp. They have a vesting schedule of four years, so that at any given time, employees have almost four years of unvested RSUs. (After four years, some RSUs fully vest and more RSUs are added.) No one wants to leave that much money on the table.

paxys 2y ago

"I want to leave but I have $2.5M worth of RSUs vesting in the next two years" = golden handcuffs. "I want to leave but if I do I may not be able to find another job and may not be able to pay rent" is instead the reality most Americans face.

charlie0 2y ago
Golden handcuffs only happen because of lifestyle inflation that prevents you from building F U money. $2.5M is more than enough to retire on.
- auntienomen 2y ago
  You can't retire until you get the $2.5M, and your employer isn't going to give it to you if quit early. That's what makes it handcuffs.
  - charlie0 2y ago
    Vesting period is generally 4 years, so while you're right, 4 years is a very short period of time to wear the cuffs.
- marcuskane2 2y ago
  > $2.5M is more than enough to retire on For a single, childless person who wants to live a lower-middle class lifestyle in a low cost of living area, sure. But if you want to live in a decent location, you're looking at needing at least a million just for a house. That leaves 1.5 to generate income, so at a 3% safe withdrawal rate that's $45k per year. After taxes that's now like $35k. And you're not getting health insurance from employer so budget $6k per year for premiums (and be ready to pay out up to $6k per year more if you end up in the hospital). So in the end, you've got something like $20k-$29k per year to live on. That covers groceries, car maintenance/insurance/payments, upkeep on the house, phone, etc sufficiently for one person. But you're probably not joining your friends on their ski vacation or even going out for drinks with them too often. And of course, the whole thing falls apart with a family. The average cost of health insurance for a family of 4 is $24,000 per year.
  - charlie0 2y ago
    Ah, the type of person to starve because their plate of food doesn't include caviar.
  - jjav 2y ago
    > not getting health insurance from employer so budget $6k per year FYI when I took some time off, I had to pay ~$3500/month for health insurance for a family of three (and of course still pay deductibles and out of pocket costs). Health care insurance in the US is unimaginably expensive.
    - charlie0 2y ago
      Just looked up ACA. For 45K income per year for house of 4, Silver plan ~400 - ~800 a month. How are you paying $3500/month? COBRA?

keyle 2y ago

No, golden handcuffs are when you're in for a massive payout if you stick it. In this case, this person is trapped. So just regular handcuffs.

fsckboy 2y ago
The person is not even trapped. The person is worried about the prospects for the economy and they feel better security staying where they are then moving, a move they'd be completely free to make.

steve_taylor 2y ago

That's not quite it. Golden handcuffs refer to financially significant unvested shares or options (e.g. RSUs) that you will forfeit if you leave the company. Some companies include quarterly RSUs as a significant percentage of total comp. They have a vesting schedule of four years, so that at any given time, employees have almost four years of unvested RSUs. (After four years, some RSUs fully vest and more RSUs are added.) No one wants to leave that much money on the table.