Temporary Job Relocation

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livingandlearning
Posts: 10
Joined: Fri Jul 15, 2016 10:02 am

Temporary Job Relocation

Post by livingandlearning » Thu Oct 05, 2017 4:00 pm

Bogleheads,

I was recently presented with an opportunity at the company that I currently work for to move several states away to work on a project. This project will be, at minimum, six months long with the potential to be longer, maybe permanent depending on how things go. This is a project I am very interested in and would be in a place I would really enjoy learning more about. I have never been in a position like this before and am looking to some of the more experienced folks here with help in figuring out what questions to ask, things to negotiate for etc. A little more background info:

-Under 30, not married, no kids.
-Mortgage on my home @ 3% fixed for 15 years. In year 3 of mortgage. Put a little more than 20% down and owe approximately 50K. Monthly payment with taxes and insurance is $550.
-No other debt
-Own two vehicles free and clear but will need to be replaced in the next 6-12 months.
-Emergency fund at 11K
-Still need to fund IRA for 2017. (Typically do this from emergency fund and slowly rebuild)
-401k at 68k
-Roth IRA at 14.5K

Right now my main concerns and questions I intend on asking my employer are:

What exactly are the tasks they want completed?
What is the timeline for those tasks?
What is the priority of each one of these tasks?
What resources will be available to me and how often?

For those that have experience with this, what else should I be asking?

As far as finances are concerned, I would also like the input from others here. I feel that I am in good shape but could always improve. I have been told that my employer would pay for my housing during this project (apartment rental). Two things I would like to get negotiated are my employer reimbursing me for a flight home 1-2 times per month to check on my current home. Since the duration of the project is unknown I am not ready to sell or rent it out. Would this be reasonable to ask for?

The other thing is, my vehicles work for my current situation but will need to be replaced in the near future. I currently have a small car and truck. I would mainly be looking to replace the truck. Would it be reasonable to ask for a rental until it is known if the project is going to take off?

I have not planned on discussing a pay raise or how this project will affect me if it goes well or if it goes bad. Is this something I should bring up? My thoughts are to get my above questions answered, give the project my best effort, and worry about crossing the bridge about pay when I get there. I am not sure if this is the best way to go about it. I am sure I am leaving somethings out so if I need to give more info let me know. I would appreciate any advice you all would be willing to give.

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BolderBoy
Posts: 3281
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Temporary Job Relocation

Post by BolderBoy » Thu Oct 05, 2017 9:10 pm

livingandlearning wrote:
Thu Oct 05, 2017 4:00 pm
I have been told that my employer would pay for my housing during this project (apartment rental). Two things I would like to get negotiated are my employer reimbursing me for a flight home 1-2 times per month to check on my current home. Since the duration of the project is unknown I am not ready to sell or rent it out. Would this be reasonable to ask for?
Yes, absolutely. The housing costs should be all inclusive (utils) as well. And you should have final approval on the apartment.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

WolfgangPauli
Posts: 170
Joined: Sun Aug 23, 2015 8:28 am

Re: Temporary Job Relocation

Post by WolfgangPauli » Fri Oct 06, 2017 4:39 am

A couple of things that are very common in these situations:

1. They should be willing to alarm your home and take care of maintenance (i.e., cut lawn, snow removal whatever ). I would get this for sure and it is very common. No one is expected to just leave their home unattended.

2. Flights back - I would not code this to "check on the house" but rather to take care of personal business such as doctors, etc. etc. Should be two per month for sure.

3. Everything should be grossed up for taxes. There will be a lot of money flowing your way which likely will put you in a higher tax bracket.. they need to gross you up so you are not penalized for this.

4. Nothing in this should preclude a full relo if they choose to make this permanent.

Finally, a bit off topic, and I would say I do not like your plan of "fund the IRA from emergency fund then slowly rebuild" because this means you essentially do not have an emergency fund for most of the year. You should be able to do both - have one all year long and fund the IRA.. You are in a great financial position otherwise.

Of course, all my advice is assuming you hold the "skinny end of the bat" in this negotiation. But, everything I have cited above is fairly common.

Best,

WP
Twitter: @JAXbogleheads | EM: JAXbogleheads@gmail.com

livingandlearning
Posts: 10
Joined: Fri Jul 15, 2016 10:02 am

Re: Temporary Job Relocation

Post by livingandlearning » Fri Oct 06, 2017 7:29 am

WolfgangPauli wrote:
Fri Oct 06, 2017 4:39 am
A couple of things that are very common in these situations:



3. Everything should be grossed up for taxes. There will be a lot of money flowing your way which likely will put you in a higher tax bracket.. they need to gross you up so you are not penalized for this.



Of course, all my advice is assuming you hold the "skinny end of the bat" in this negotiation. But, everything I have cited above is fairly common.

Best,

WP

Thanks for the reply. Would you care to expand on this? I'm not sure I completely understand what you mean by grossed up?

Thanks

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dm200
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Location: Washington DC area

Re: Temporary Job Relocation

Post by dm200 » Fri Oct 06, 2017 7:52 am

Are you willing to relecate permanantly if that becomes the company decision?

"grossed up" means that some of these types of extra compensation will be taxable to you. You would like to get extra to compensate you for those extra taxes. For example, if they give you $5,000 extra for compensation for something, and that is taxable (say at 25%), then you only net $3,750. What you want to try to get is "grossing up" the $5,000 to $6,667 - so that you "net" $5,000.

livingandlearning
Posts: 10
Joined: Fri Jul 15, 2016 10:02 am

Re: Temporary Job Relocation

Post by livingandlearning » Fri Oct 06, 2017 7:56 am

dm200 wrote:
Fri Oct 06, 2017 7:52 am
Are you willing to relecate permanantly if that becomes the company decision?

"grossed up" means that some of these types of extra compensation will be taxable to you. You would like to get extra to compensate you for those extra taxes. For example, if they give you $5,000 extra for compensation for something, and that is taxable (say at 25%), then you only net $3,750. What you want to try to get is "grossing up" the $5,000 to $6,667 - so that you "net" $5,000.

Thank you for the clarification. At this point I would say that I am willing to relocate permanently but I haven't been there yet. I was planning to figure out if this area is somewhere that I see myself living permanently during the initial six month period. Thoughts on my line of thinking?

soccerrules
Posts: 129
Joined: Mon Nov 14, 2016 4:01 pm

Re: Temporary Job Relocation

Post by soccerrules » Fri Oct 06, 2017 1:23 pm

OP-
I do not know all the particulars of your field, expertise etc. BUT you may have some leverage to negotiate.

If you are the only viable option, or best option for the project-- then they may be willing to provide additional pay or considerations. If this is the case, ask them for a outline of pay, bonuses, and living expenses covered for you to consider. They should be able to provide you something in writing. You don't ask you don't get. Then counter is appropriate.

If there are other applicants and you are "interviewing" to take the opportunity, you really don't have much leverage.

In general, providing housing/rental car and even meal allowance is appropriate. Agree with other posters about the trips home.

As far as the pay question. If they have provided you with the details of the assignment and a pay increase is not included. Again depending on your position of leverage, you could go back and ask for a raise. I am not suggesting you try and fleece your employer, but they should expect you to benefit from their "need/request". It should be a win/win.

good luck and keep us posted.

on the Roth funding from your EF. I would be OK doing that if the withdrawal didn't represent 50% of your EF. You might skip this year and then for 2018 just start making monthly contributions to a Roth and not touch your EF.
Don't let your outflow exceed your income or your upkeep will be your downfall.

Kywildcat
Posts: 50
Joined: Fri Jun 24, 2016 1:35 pm

Re: Temporary Job Relocation

Post by Kywildcat » Fri Oct 06, 2017 2:32 pm

I only have experience of working on a similar project once (I an 31yo), but here a couple of things based on my experience. I think mine was slightly difference since there was change that it was permanent. Plus, I do not know how far "several states away" is. My project was about a 2 hour flight.

1. I had the opportunity to travel home every weekend. I would rent a car each week.
2. No change in compensation, although I might have gotten a higher annual bonus given the project, but don't know that for certain.

SRenaeP
Posts: 615
Joined: Tue Jan 19, 2010 9:05 pm

Re: Temporary Job Relocation

Post by SRenaeP » Tue Oct 10, 2017 9:56 am

livingandlearning wrote:
Thu Oct 05, 2017 4:00 pm

As far as finances are concerned, I would also like the input from others here. I feel that I am in good shape but could always improve. I have been told that my employer would pay for my housing during this project (apartment rental). Two things I would like to get negotiated are my employer reimbursing me for a flight home 1-2 times per month to check on my current home. Since the duration of the project is unknown I am not ready to sell or rent it out. Would this be reasonable to ask for?

The other thing is, my vehicles work for my current situation but will need to be replaced in the near future. I currently have a small car and truck. I would mainly be looking to replace the truck. Would it be reasonable to ask for a rental until it is known if the project is going to take off?

I have not planned on discussing a pay raise or how this project will affect me if it goes well or if it goes bad. Is this something I should bring up? My thoughts are to get my above questions answered, give the project my best effort, and worry about crossing the bridge about pay when I get there. I am not sure if this is the best way to go about it. I am sure I am leaving somethings out so if I need to give more info let me know. I would appreciate any advice you all would be willing to give.
DH recently completed a similar assignment. Of course, the logistics were easier since I remained at home.

Would the apartment rental include furnishings, utilities, etc.? DH decided it was easier to utilize an extended stay hotel (e.g. Residence Inn). He didn't have to worry about anything and it included free breakfast every day and free dinner on weekdays. Housekeeping came daily so he didn't even have to worry about cleaning up but he did have to pay to do laundry (coin operated laundry room on site). The added benefit of this is that he's now a platinum Marriott member and earned ~300k points that will allow us to take a few nice vacations. The company paid for his rental car as well but he was responsible for covering his own gas, food, etc. The company also covered trips home every three weeks and lawn/home maintenance expenses of up to $200/mo. While he did not get a pay raise, he did get a premium for the duration of his stay that is supposed to cover the additional taxes that will be owed to the state his assignment was in.

-Steph

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