Everyone in my position was informed that we will all be getting a raise effective January 1, 2008! Nice surprise!!

For privacy reasons, I haven’t provided much detail on my position and what I do. I will say that I am in middle management for a private company. To remain competitive, the company believes in providing their employees with excellent benefits and pay. From what I understand, they recently did a survey of what similar companies pay those in my position. Since we were being under paid relative to the competition, the company gave us all a raise! Yeah, they want to keep us that bad.

With the extra money coming in next year, there are some implications to my retirement plan. Instead of hitting the next tax bracket in 2010, I’ll actually reach it a whole year earlier in 2009. This makes it even more important for me to max out my Roth IRA. But now I wonder if the savings are all that significant in the next two years… because a part of me doubts that I will reach the next tax bracket after 2009. Wait and see I guess.

All the extra income will go into building my Investment Portfolio. As some of you may know, my portfolio is not well diversified with investments in just two companies. I hope to change this over the next 12 months, with a focus on about 8 to 10 companies in various sectors. Extra money means extra savings!

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12 Responses

  1. SavingDiva

    August 24th, 2007 at 10:42 am

    1

    Congratulations on the raise! Make sure to use it wisely! :)

  2. Danny at Money Socket

    August 24th, 2007 at 12:03 pm

    2

    Congrats on the raise!

  3. Brip Blap

    August 24th, 2007 at 8:33 pm

    3

    Listen, enjoy the raise, but don’t let it make you complacent. I have gotten big raises followed by several years average raises - they figure the glow takes a while to wear off. But enjoy it, invest it, be happy!

  4. MoneyMan

    August 29th, 2007 at 9:03 pm

    4

    Congratulations. It’s a rare company that raises everyone’s salary out of the blue, outside of a review and everything like that! Keep working for more raises and you’ll be well ahead of the game.

  5. MONEY BLUE BOOK

    August 31st, 2007 at 1:29 am

    5

    Hey congratulations! Keep maxing out that retirement account and keep saving, and you’ll do great. I’m not diversified either in my investments. I’m probably 75% invested in Asian Funds…. :)

    -Raymond (MONEY BLUE BOOK)

  6. Tom

    August 31st, 2007 at 2:33 pm

    6

    Congrats on the raise!!

  7. Michael

    September 2nd, 2007 at 7:51 am

    7

    Good job getting a raise :) Hopefully I should get my pay soon so we will both be in the money :)

  8. Jay Profeit DOT com

    October 13th, 2007 at 3:27 pm

    8

    congrats! I actually just got a raise last week too!

    Gotta love it!

  9. Kleeneze

    May 4th, 2008 at 5:50 am

    9

    Very nice job on the raise. Here in the UK, tax rises are way more than any sort of wage rises.

  10. Ron Johnson

    May 18th, 2008 at 7:00 pm

    10

    HUGE pick-up on the impact on your tax bracket. All the time people get so excited about the raise that they always forget about the tax implications.

  11. igre

    May 27th, 2008 at 5:10 pm

    11

    Wow, cogratz dude. Now you can spend some on your readers :P j/k

  12. Vijay

    May 29th, 2008 at 5:31 am

    12

    Interesting! Hey…..being in the middle management position is quite an adventurous position to be in. Pleasing your upstream hierarchy and keeping the downstream subordinates’ motivation up can be quite a task. Depending how energetically endowed you are things can give you an adrenaline rush!!

    BTW, there are some interesting resources on career enhancement here. Check out the Career category once you are there.

    Cheers, and all the best!!


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