You’re pondering two different job offers. One pays more, but the other offers better benefits.
Since security matters to you, you’re leaning towards the job with better benefits. You ask me what I think.
I’ll answer your question with a scenario: Suppose your boss owned your house.
Here’s why I say that…
In years gone by, sharecroppers and ministers lived under this arrangement. (Many in the military still do.) For them, a troubling cloud always loomed overhead: “What am I going to do when I no longer have employee-provided housing?”
For the record, the home ownership rate in the U.S. is just under 66%. I’m sure most love the freedom that comes with owning a residence. That property is yours to do with as you please.
Ownership also provides a profound sense of security. If your mortgage is paid up, no one can kick you to the curb. Keep your home updated, and it will be around as long as you are.
Now, back to our scenario…imagine opening your employee handbook and reading, “Upon termination of employment or separation from service, you must vacate your employer-owned home within 30 days.”
Fortunately, very few workers face this prospect; however, many do lose other valuable employee-provided benefits when they retire, get laid off, or leave to launch out on their own.
The one I see most often is the group life insurance workers have through their companies. For many people, this policy is the only life insurance they have. Upon separation or retirement, it often terminates.
Another employee benefit that commonly disappears when your job does is disability insurance. Many of these group plans are inadequate to cover one’s needs. Few are portable. That is, you can’t take that coverage with you when you depart.
I’ve had hard meetings around these issues with folks nearing retirement age. Because of pre-existing medical conditions, they knew they would struggle to find an insurer willing to extend coverage to them for life insurance, disability insurance or long-term care insurance.
So, even though they wanted to retire, they remained chained to their current job for fear of losing a critical employee benefit.
To sum up: If an employer offers you a rich benefit package, be grateful.
But when you get the chance to own your own benefits package (i.e., through life insurance and disability insurance you purchase on your own), give serious consideration to that option. And be sure to consult an experienced advisor during that process.
You want benefits that you own. That’s the kind of long-term stability and security that produces peace of mind.
And speaking of peace of mind…are you worried about how you’re going to turn your retirement savings into regular retirement income (so that your money lasts and you’re able to realize all your financial goals)? If so—and you’re not sure how to do that—I’ve got a free tool that can help.
It’s called the RISA (i.e., Retirement Income Strategy Assessment), and in just a few minutes it can show you what kind of retirement income plan best aligns with your personality, goals, and lifestyle. There’s no obligation, and you can access it by emailing me (bmoore@argentadvisors.com).
Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.
