Personal Finance

Would you trade a flexible job that pays $100k a year for a job that pays $300k with 60-hour work weeks and lots of travel?

Joey Frenette

Published: December 11, 2024 1:45 pm

Last Updated: December 11, 2024 7:56 pm

It’s a dream for many climbing the corporate ladder to finally land that promotion. Indeed, such big promotions entail handsome pay raises, opportunities to travel, and even enhanced benefits. That said, climbing to more senior positions also entails more hours, more stress, and perhaps less time to spend with family and friends.

For a young person who’s still single and without kids, such a make can be a no-brainer for many. That said, it can take many years (or decades) to land such a big promotion. And by the time one is offered a senior position, one is already in the latter stages of their career, with a family and likely enough money to satisfy a fairly comfortable lifestyle and (maybe) a comfortable, early retirement.

In the case of a 52-year-old individual posting on the r/ChubbyFIRE subreddit (for overachieving prospective early retirees), they’re unsure as to whether they should take a promotion that will see their annual pay triple (when accounting for bonuses) while opening a window to travel opportunities.

Key Points About This Article

• Huge promotions can cause many to postpone an early retirement.
• Trading time for a lot more money is a common dilemma for many in their late-career.
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Early retirement or a big, fat promotion?

Such a promotion will also entail 50-60 hours per week, which can be quite tolling on someone who may have had plans of “winding down” ahead of an early retirement. With a fairly chubby net worth of just north of $3 million, this individual arguably already has more than enough to retire tomorrow while they’re still relatively young in their early 50s.

In a prior piece, I noted that golden handcuffs were one of the reasons that caused those keen on the FIRE (financial independence, retire early) movement to put their plans on ice. Whether that’s a good thing, though, is the big question.

Undoubtedly, it’s not hard to imagine many folks facing similar dilemmas as they near their FIRE number and expected retirement dates. Though I don’t have the magic answer, I do think there are important considerations before making the decision of a lifetime.

It’s tough to turn down a “life-changing” amount of money. But it can make sense to do so in some scenarios.

This individual has no plans to stop at a $3 million net worth, even though it’s above and beyond what many Americans have saved up by retirement. Their target is $5 million, and it’s one that could be met a heck of a lot sooner if they took a promotion that’d triple their earnings.

Still, the longer hours and added responsibilities may or may not be worth the padded retirement, especially if one is already feeling a bit of burnout from one’s current role. Indeed, it’s not hard to imagine many folks in their 40s or 50s pursuing FIRE because they’re starting to get tired of the daily grind.

Even if the individual passed on the promotion, they’d still be in an enviable position with a $100,000 annual salary, while their partner pulls in a whopping $200,000 yearly. The big question, I believe, is what they plan to do with the additional money beyond the $3 million they already have.

If the cash will be blown on luxury goods and lifestyle creep, perhaps sticking with one’s current role would provide a better work-life balance. Also, it’d probably be easier to transition into retirement from one’s current role than doing so after getting a big, fat promotion that’s likely to entail pressure to stick it out a while longer until one eventually is too old to be considered an “early” retiree.

Additionally, business travel opportunities are a plus for some and a burden for others. I’d argue that it’s a downside for someone in their 50s who would prefer to maximize time spent with their children.

The bottom line

Sure, an extra $200,000 per year is a life-changing sum for many. But for someone who already has millions banked and $300,000 in household income, I’d argue the extra cash probably won’t lead to a significant increase in happiness, especially given the trade-off of time spent away from loved ones.

As always, consult a financial advisor and discuss the trade-offs of such a promotion with your family before making a move.