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Old 12-31-2009, 18:22   #10
nmap
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Join Date: Jun 2007
Location: San Antonio, Texas
Posts: 2,760
If I may attempt to add to the great advice already given...

Take a look at the cost of self-employment tax versus regular Medicare/Medicaid withholding. As an IC, you pay both the employer's portion and the employee's portion. A move to employee status implies about an 8% increase in pay as compared to IC status.

Health insurance is a very big deal. Keep in mind that you are both young and healthy. That will pass. If you get health problems, you may cease to be insurable. That means that you could face the problem of not being able to buy health insurance, no matter what you were willing to pay. Even if the health problems are only moderate, you might be "rated" - which means an increase in premiums. As an employee, you will (presumably) be part of a group, and hence can continue paying the same rate despite individual issues.

Retirement...you face quite a challenging problem. You're still (barely) young enough to benefit from compounding over time. But whatever status you choose, you need an IRA. I suggest a Roth, but either choice has its advantages. If you don't set up an IRA or other retirement account, you are likely to face old age with nothing but Social Security - in which case, I hope you enjoy the flavor of dog food. And no, I'm not kidding.

As an employee, you may have the chance to use a 401k. Those are great; however, an IRA is still desirable. In some instances, the 401k is invested in the stock of your employer. What happens if the company fails? The stock goes to zero. Not a pretty sight.

You mention the time off. It's true - time off is a beautiful thing. But I have found that one can generally go to an employer during slack times and ask for time off without pay.

Finally, take a hard look at the employment statistics. Presently, U6 (the most inclusive) is at 17.2%. ( LINK ) Please reflect on that number. It suggests that there are lots of people who want your job.
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