Money doesn’t feel very special most of the time because we work hard for our money. When we get our paycheck or the proceeds from a successful investment, of course we deserve the money. It’s when we win the lottery or find a dollar on the street when we start experiencing that giddy feeling money sometimes brings.
I got a nice surprise in the mail from my old employer the other week. It’s shocking to think it’s been over three years since I last worked a stable job. The mail simply notified me that another tranche of employer stock was going to hit my brokerage account. Sweet! I haven’t thought about receiving deferred compensation in a while now given I’ve been so busy writing, consulting, finding new tenants, and managing my never ending bathroom construction.
Finance industry bonuses are generally broken out into cash, stock, and private investments, depending on your seniority. The more senior you are, the less cash you get. I was a Director (one up from VP) at my old shop, so my bonus was heavily weighted towards deferred compensation that was spread over three to seven years! That’s how firms make it expensive for employees to ever leave.
If you quit your job, you will lose your deferred compensation in finance much like how you’d lose your remaining unvested stock grants if you work at a startup. But if you have a dialogue with your manager, you just might be able to keep what’s yours.
Remember, everything is negotiable. The sooner you realize this, the more wealth you’ll be able to create!