Big change in Jobs

[Urban Chicago]

Up until this point, DH has been the primary breadwinner and I have been working part-time while taking care of the kids.

Recently, an opportunity arose at my office that may enable us to flip this scenario. We are still talking money, but if I decide to do this, we are likely to take about a $10K pay cut. The new salary would pay our bills, with a few cuts that I will explain below.

DH is confident that he can get some consulting work a couple days a week, and/or teach a class at his alma mater. If he does, we would be saving most or all of his income.

Good parts of my new job:
Generous 401K (really 403B as I'm in a non-profit)
Will eliminate the need for 529 plans
Job is on the train line, enabling us to get rid of one of our cars.

Bad things:
To make this work on a month-to-month basis, we will probably have to cut his ROTH contribution, our VUL life policy (we both have Term life that would probably cover most of what we need), and I would need to margin some stock to pay some other debt (17K). I'm also in an industry notorious for lack of bonuses and teeny raises.

We really want to do this. Do you all think I'm crazy?

[thyme4change]

Sometimes it isn't about the money. Would your family be happier with the new arrangement?

[whoisjohngalt]

Sometimes it isn't about the money.

Bite your tongue woman!! On YM EVERYTHING is about money or it gets moved to EE!!

OP-

It doesn't sound you would come out ahead financially that much (unless I am misreading your post), so, to me, other benefits would have to be pretty substantial. Are they?

Also, is your DH the kind of guy who is OK not being the breadwinner? Not all are

Lena

[thyme4change]

This is Pro-Money. YM is dead.

[sil]

Not quite following - are you saying that this new opportunity would pay less than your PT gig, or are you saying that it pays more but because you are FT, you will need daycare? Is your DH looking to consult/teach in addition to his regular job, or did he recently lose a job and he thinks he can make up for some of the difference with one of these gigs?

If you are moving to a FT job, would you be able to get your own health benefits rather than using your spouse's plan? That could also close some of the gap. Also, does the 403b include employer match? You could consider that to be an offset for the amount you no longer contribute to the ROTH

[Deleted]

I think he's going to do kid duty for awhile, and work part time (consult) ... which is what she does now. She will go work full time... which is what he does now. But overall income will be 10K lower for the family.

At least that's my take.

No need for 529, does that mean free tuition for family comes with the job? ...

I'm guessing you would all prefer the new roles to your current ones, which is why you would make the change. Will you still like it when it means giving up an extra 10K of ammenities? Its worth exploring.
How long does someone still have to be on child care duties?

[Urban Chicago]

I think he's going to do kid duty for awhile, and work part time (consult) ... which is what she does now. She will go work full time... which is what he does now. But overall income will be 10K lower for the family.

Yes, I should have made that more clear.

No need for 529, does that mean free tuition for family comes with the job? ...

Right again.

I'm guessing you would all prefer the new roles to your current ones, which is why you would make the change. Will you still like it when it means giving up an extra 10K of ammenities? Its worth exploring.
How long does someone still have to be on child care duties?

I really think both of us would be happier. DH is a real homebody and would love taking car of the kids. Kids are 2 and 5 months, so for a few more years we'd need full-time care. If DH's consulting work goes well, he would probably expand it a bit when both of them are in school

[alabamagal]

Just do it!

[8 Bit WWBG]

It could be a very worthwhile change. I hope the new salary works out well and that you can make things work.

[The J]

As long as you can meet your financial needs, or adjust your expenses to meet the new income, I'd say it's totally worth it.

[zibazinski]

Will your DH be able to go back in 5 or 6 years or will he effectively have to stay in consulting forever? Not necessarily a bad thing but something to think about.

[upstatemom]

I would be leery about the assumption of not needing the 529 .Some of the large Universities in this area are cutting back on the free/discounted tuition benefit for dependents. I would not be surprised to see more of this.