Current economic climate impact on decisions

[dshawn]

Curious if the current economic climate has any impact on your decision to seek the ALJ job or, if already a sitting ALJ, your willingness to move. For example, if you are sitting on a really low mortgage rate or just generally how expensive certain popular locations for federal positions (e.g., DC) are. Housing, food, transportation, etc. are seemingly out of control in some areas. As to transfers, it seems like the agencies offer assistance less frequently than in the past.

Not seeking a political debate about who is at fault. I am interested in whether it has changed your calculus? Are you willing to take the gig at any cost?

[jimmyjiggles]

As a current SALJ who might get RIFed (along with you dear friend?), I’ve been thinking about these issues a lot. There’s really no job out there that pays more that is readily attainable, so a pay hit is probably coming. But even with that, you know the one single factor that is more important to me than anything else when considering a new job?

Remote work. All the issues you cite can be addressed/ameliorated with remote work. Having to drive to work and live in the commutable work area is basically signing up to be controlled by economic forces you have no power over. Mortgage rates, home values, crime, gas prices, traffic, and pollution to name a few. With remote work you can take advantage of economic factors and avoid unfavorable ones.

For me, I have moved around a lot for work, hoping that one day I’ll have enough money to move back to where I want to live when I retire.

After doing a thousand hospice cases, I’m a little more “live for the day.” Even if I don’t retire, that’s fine, as long as I can work somewhere I actually enjoy being (and can afford to be!)

[jagvet]

Fascinating discussion. I know of an ALJ who turned down a long-sought transfer because of interest rates spiking (among other reasons). This really goes two ways. If you are in a high cost-of-living area and can move to a lower cost (housing and taxes are the main drivers here), then the push is to do that, but if you are hoping to move from a lower cost to higher cost area, then adding high interest rates and general inflation, it could be a disincentive.

That said, no one is getting younger (I'm talking to you, Benjamin Button), and delaying major moves if you can swing it with some belt-tightening may be gambling. Maybe the opportunity won't come up again. Maybe you'll be too old to fully enjoy the new place. I made two major financially prohibitive moves in my career, and had to really stretch to make budget, but they were both worth it and ultimately paid off when I relocated to where I am now. They also enabled me to get some true quality-of-life for my whole family.

Bottom line: Opportunity knocks but once.

[dshawn]

Those hospice and GBM cases sure can make one rethink priorities. Without a doubt.

I asked the question because I know my calculus has changed. I am fascinated by the factors that some folks I know and have become friends with have to balance. In my life, should a choice arise or the decision be forced on me, it is much easier with only two employees (me and the boss) in our household. For many others, whether transfer, new gig, or RIF the moving parts can be quite numerous.

I appreciate both of your insights. As much as I love my colleagues (some amazing people in this job), hindsight being 20/20, I might have chosen differently.

I imagine walking away (if you don’t want to be a landlord) from a 3% mortgage rate will leave a mark.

[Gaidin]

Interest rates have definitely impacted my willingness to transfer. At this point I have some equity in the house but not enough to move to a location I desire (higher cost) and also almost double my interest rate.

I can take one hit but I can't see myself taking two hits. So I'm probably not going anywhere for a few more years.

[neufenland]

May 7, 2024 17:20:26 GMT -5 jagvet said:

Fascinating discussion. I know of an ALJ who turned down a long-sought transfer because of interest rates spiking (among other reasons). This really goes two ways. If you are in a high cost-of-living area and can move to a lower cost (housing and taxes are the main drivers here), then the push is to do that, but if you are hoping to move from a lower cost to higher cost area, then adding high interest rates and general inflation, it could be a disincentive.

That said, no one is getting younger (I'm talking to you, Benjamin Button), and delaying major moves if you can swing it with some belt-tightening may be gambling. Maybe the opportunity won't come up again. Maybe you'll be too old to fully enjoy the new place. I made two major financially prohibitive moves in my career, and had to really stretch to make budget, but they were both worth it and ultimately paid off when I relocated to where I am now. They also enabled me to get some true quality-of-life for my whole family.

Bottom line: Opportunity knocks but once.

Thing is, if you are sitting on 2.5% or 3% now, even if you move to where the housing prices are lower, it might still be a wash, or close to a wash, in the monthly payment when that 7.5% shows up.  I guess the upside is that housing prices in the expensive area are high enough so that you’d have more equity to throw around when you sell. And it is a seller’s market.  

[aljhopefully]

On a related note, how are rents in DC faring? Have they recovered since the pandemic? Interestingly I never considered DC a popular destination. As a former federal employee I was always under the impression from my colleagues that they wanted to get *away* from DC because a salary would go a longer way most elsewhere.

[ssaogc]

May 6, 2024 19:59:54 GMT -5 dshawn said:

Curious if the current economic climate has any impact on your decision to seek the ALJ job or, if already a sitting ALJ, your willingness to move. For example, if you are sitting on a really low mortgage rate or just generally how expensive certain popular locations for federal positions (e.g., DC) are. Housing, food, transportation, etc. are seemingly out of control in some areas. As to transfers, it seems like the agencies offer assistance less frequently than in the past.

Not seeking a political debate about who is at fault. I am interested in whether it has changed your calculus? Are you willing to take the gig at any cost?

I got inquiry for one of the western offices not too long ago. Crunched the numbers. I currently have a 2.25 percent interest rate mortgage. When I added moving costs, selling cost of my current home and purchase in new city the numbers were brutal. I would love to move to that city but it makes no financial sense. I am staying out till retirement which was another reason I turned down the opportunity, the return on investment would be negative.