Which ladder should I climb? Public vs. Private (employment, 401k, profit)

[Neerwhal]

Current value: Mid-low 100s, ready to move on.

My estimated top value in the public sector: $200k ish.

My estimated top value in the private sector, based on current salary and knowledge of ability to climb: $500k ish.

I probably shouldn't have to mention this, but to clarify, this is not a purely mathematical decision. I could easily continue on the salary I have right now, and live frugally, and manage.

A few assumptions / background information for you to work with:

• At-will employment applies to government positions in my state, and few positions over $60k are unionized so government work would not be "more secure".
• There are no special bonuses like free tuition or free medical care for public workers in my state or city. No discounts. There is no reduction in tax for public sector workers. There are also no annual bonuses.
• The public and private sectors in which I would be working are particularly prized for transparency and excellence. I am not concerned about huge corruption or horrible working conditions in either one.
• All of these positions have "senior" or "director" or "consultant" at the beginning of them.
• There are opportunities for both near my home, but more opportunities for corporate jobs.

[MLSFan]

Originally Posted by Neerwhal

I could easily continue on the salary I have right now, and live frugally, and manage.

are you happy with your current life doing this though?

if so, what's the point of earning "more"? What do you plan to do with it that makes it worth it, or is it an ego thing of saying you earned a half mill?

• At-will employment applies to government positions in my state, and few positions over $60k are unionized so government work would not be "more secure".
• There are no special bonuses like free tuition or free medical care for public workers in my state or city. No discounts. There is no reduction in tax for public sector workers. There are also no annual bonuses.

generally true for most workers... why did you think public sector got special privileges

a lot of public jobs seem to be mission driven, if you want to try something other than profit driven projects

[Neerwhal]

Originally Posted by MLSFan

are you happy with your current life doing this though?

I'm asking about your opinions and what made you happy. If you choose to dig through my past posts you will see I have not hidden my unhappiness with previous roles, but that also, I'm willing to be pragmatic.

if so, what's the point of earning "more"? What do you plan to do with it that makes it worth it, or is it an ego thing of saying you earned a half mill?

Hey, that was my question!

I'm interested to hear what other people got out of a half million, or even a quarter mill. Was it bragging rights? Were the cars really that nice? Did you give back? Retire early? Etc.

generally true for most workers... why did you think public sector got special privileges

I've worked in the public sector and I'm aware that there are no special privileges.

This was to clarify the misconception for others. I've seen many people on the Internet perform very interesting analyses of public sector jobs, usually along the lines of, "you can't get fired and get a whole bunch of stuff for free". Maybe it's like that some places, but it's not like that here. I wanted to ensure that I was getting information about the actual choice I have, not a choice between an imaginary perfect easy career.

a lot of public jobs seem to be mission driven, if you want to try something other than profit driven projects

Yes. Can you tell me why you didn't choose those, or why you did? What decision did you make?

[Bodie_Bunk]

I was on the fence having this choice myself. But based on the information you provided above for your circumstance I would say Corporate. If there's no job security at the higher salary tiers there's honestly no point to working in government IMHO.

[Serious Conversation]

At a $300k difference, a few years of that could possibly mean you could retire out of the area. Normally I'd recommend the public sector, but that is a colossal difference and a life-changing amount of money.

[tnff]

Very simply it comes down to why you want to work. People don't go into public service to make big bucks; they go into it because they are driven to serve something larger than themselves. You need to have a belief in the mission to sustain you through those times when the political climate blames you for their problems. As you've noted most people have very wrong beliefs about public servants. The comments in the media, from political agendas, and even on here can wear you down because of the constant drumbeat of negativity.

So there's your answer. If you love the mission then public but if not go private because you will be miserable.

[Hemlock140]

It depends on your personal future goals. Having worked at two different public agencies I find that many of use really consider our work to be providing a service to the citizens, as opposed to private sector companies where your goals are all to make money. If you are single or married with no kids, the higher pay could be the best move financially, and offer the opportunity to pack away a tidy savings and IRA/401k retirement funds. When you have the additional responsibility of a family the public job at lower pay provides more stability, and even if over 40 already a decent pension to supplement your private savings when you retire.

[DorianRo]

Public for sure. Job security. That’s completely gone from the private sector. One idiot can destroy the lives of everyone in the entire company in a few years time. And that’s all it takes is one person. You want your career and livelihood to be pinned onto one moron or a few at the top? I sure don’t

I’d have gone to the public sector 2-3 years ago if it wasn’t so difficult to get in. Sure you could probably make a little more money in there private sector but your shelf life is substantially lower now than in a state of federal job so what good does it do in the long run. Most private sector pay isn’t keeping up with Inflation anyways and there opportunities for advancement are nowhere NEAR what they used to be due to short term expense cutting and centralizing positions

[jnojr]

Originally Posted by MLSFan

if so, what's the point of earning "more"? What do you plan to do with it that makes it worth it, or is it an ego thing of saying you earned a half mill?

Unless you love your job like nothing else in the world, how about early retirement with at least one paid-off house along with savings and investments that will provide the income you want or need for the rest of your life?

I know some people love to work (not necessarily at their particular job, but just in general, to be doing something) and can't stop. Not me! When it's time to pull the yellow handles, I'm gonna break 'em off. The thought of doing absolutely nothing but exactly what I want for the rest of my life is bliss. I'd gladly take a road that led there in ten years as opposed to the 20-25 I'm looking at now.

[Bodie_Bunk]

Originally Posted by DorianRo

Job security.

There is no job security above a certain pay grade in the public sector either. If a positioned is "appointed" you can be let go and have no union or other protections.