So far this year I have had the pleasure of assisting 3 clients with their offer letters. All 3 wanted another set of eyes so to speak, or a second opinion.
In 2 cases the clients were not sure if the terms were acceptable enough for them. Let’s take a look at these examples.
In the first case the applicant had 2 choices. Take an approximately 10% higher salary with no vacation and zero benefits. We counted the beans and the lower salary with benefits and vacation was a better deal. I also calculated the tax owing at both salary points.
The second client was in a similar position. Wanting to move to an employer where there was more potential to grow and learn she felt stymied by the approximate 10% salary cut she would be facing. But the position with the higher salary had no benefits. The position with the lower salary had benefits and matching RRSP program. When we counted the beans the supposedly lower remuneration was very close to what she was giving up. The calculations also included tax owing at both wage points. After all it is what is in your bank account at the end of the day that counts.
In the 3rd case the offer came with various group investment benefits and matching as options. The choice of varying matching percentages and timing of entry into the programs is important. Our discussion can help you get maximum benefit out of any options an employer may offer.
Financial planning includes all aspects of your financial situation. I am your resource to call on whenever you have a challenge or query.