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Huge update on my raise!

April 10th, 2019 at 07:35 am

I posted a couple of weeks ago that I unexpectedly got a new contract at work that included a substantial raise. I thought the numbers needed to be adjusted based on my hours. I was finally able to confirm that the numbers I got were actually correct.

I thought my raise would be $15,833.
My actual raise is $40,493!!!
I am shocked and obviously very pleased.

It will be a couple of weeks before I get the first new paycheck to see how my take home changes but it should be around 2K/month. I have to sit down and figure out what we're going to do with the added income but what a nice problem to have.

9 Responses to “Huge update on my raise!”

  1. Dido Says:

    Wow, big congrats!

    Feels good, I'm sure.

    At my last raise, I allocated 40% to 401k, 20% to taxable savings, and 40% to debt reduction and spending. Definitely a nice problem to have :^).

  2. disneysteve Says:

    Thanks, Dido.

    My 401k is already maxed so that's not an option. We currently put $1,000/month into a taxable investment account so I'll likely bump that up. Our only debt at the moment is our mortgage and we were already on track to have that paid off in August. Now I can probably make that July or even June.

    We have also been putting at least $1,000/month into our Ally savings account not earmarked for anything particular but just kind of building up our cash reserves for future stuff like next car, home repairs, etc. We'll probably bump that up a bit too and likely move some of it into CDs or bonds earning more like 3% rather than the 2.2% for savings.

  3. Dido Says:

    Nice to have the mortgage pay-off in the near future and in the first half of your 50s as well!

    Are you planning to work until 65 or to retire earlier? About 1/4 of the clients I work with are doctors and some of them are late to retire (into their 70s) while others (especially if they work in ER) seem to burn out more quickly and retire/just do teaching or consulting once they reach about 55.

    Do you have access to a 457 plan or other type of non-qualified deferred compensation plan? That can be a way to put away more pre-tax money, but then that makes it taxable when you take it out of the plan and you don't want your tax-deferred monies being so large that you end up with huge tax bills after age 70.5. Putting it in your taxable accounts and having a large reserve will prevent the "too big" RMD (required minimum distribution) problem and certainly should make you feel secure!

  4. CB in the City Says:

    That's pretty amazing!

  5. disneysteve Says:

    The reason for the raise, in case anyone was wondering, is that they determined they just weren’t keeping up with the competition. That was affecting both recruitment and retention. They want to attract and keep quality providers and show them that their contribution is valued and appreciated. Gotta love that.

  6. LuckyRobin Says:

    That's fantastic, Steve. You were pretty excited when you thought it was $15K. This must have you doing the happy dance.

  7. Trying to get ahead Says:

    Since you and your wife enjoy travel, you could open a travel account.

  8. disneysteve Says:

    Dido - My retirement plans keep evolving. When I was still in private family practice, I was thinking no later than 62 for sure. I couldn't see myself doing that any longer than I absolutely had to.

    Since switching to urgent care, I'm not so sure. My work now is far less stressful and much more satisfying and the benefits are very good. I can see myself doing this, at least on a limited basis, for a lot longer. I could cut back to 20 hours/week and make enough to cover all of our spending and not have to touch retirement savings. That would be pretty sweet. Work 2 days/week and enjoy life the other 5. Might not be such a bad arrangement.

    I don't know about any non-qualified plan. I'll have to check on that. Up until 2017, we were fully funding Roths but we can no longer do that. That's why I started funding the taxable account. I figure that gives us more flexibility anyway.

  9. Jenn Says:

    Wowza! What a great surprise.

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