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Programming Until Retirement?
DataDragon asks: "Here's the situation- I'm a now 30something computer programmer in Silicon Valley working for one of the local billion+ dollar tech companies. I'm unhappy with my present job, but am thankful that I've got one. Although I pride myself on having written over a million lines of code in my career, with nearly 15 commercial software products under my belt (8 of them were my own concepts from start-to-finish). I've had carpal tunnel for 6 years now, my skillset looks like it came from a 3 year old magazine, and I didn't make good on stock options. Since settling down in a quiet place somewhere and having a family sounds like a great idea to myself and my bride-to-be, I was wondering: instead of all the buzz I always get like Google's 'Do you <insert technology task> in your sleep?' job opportunities I've read about, are there any employers that would rather have a person who: wants to put in an honest day's work; get to know the job and the people well; and a desire to ultimately be a mentor for the company processes, instead of a here-today-gone-tomorrow programmer, who is interested in actually working there until retirement age?"
One thing to consider is to lower your expenses. My wife and I were in quite the cherry position about a year ago. over $130,000 a year in salary combined, both of us younger than 28, buying our first house and then I was laid off.
Our first step? Sell the house. Then start paying off all our debts. We may not "own" a house now (I put that in quotes because we wouldn't have owned it for 30 years), but our expenses are relatively fixed, in the process of moving into an apartment we downsized and simplified our life considerably. And now, if I get the opportunity I can take a job like the above AND take the reduced salary. Because even though we knew money wouldn't buy happiness before, now we're putting this principle to practice and organizing our life such that we don't need that much money to live on. Our debts are getting paid off and we're happy, and that's what matters.
Do we have HDTV? Not anymore. Do we have a house? Not anymore. Do we have more than 1 computer? Not anymore. But our life is simple. We relax much more. We owe much less and our stress has been halved, both on our bodies and on our minds. Something to think about for those stressing about salaries not being commensurate with skills. Money isn't everything.
Furthermore ... Job Security is a sham. Any reader of /. would've noticed by now the recurring topic of Offshoring and all the "it happened to me too" postings that are usually generated by these postings.
The important thing is to start small / part-time and to learn as much as you can about how to start a business (and all that entails) before going full bore.
The statement that most entrepreneurs fail 2 or 3 times before making it is true - I've been there myself, however if you never try in the first place, that's much more of a waste of potential than anything.
All the reasons you state for NOT starting a business are valid - to a point. However the rewards are often worth it.
1) Starting a business (as a Corporation or LLC) has alot of tax advantages. As the original poster and many replies stated - the higher your revenues as an employee, the more the government tears into you. Running a corporation gives you access to financial tools that reduce your tax burden (deductions, deferments, etc ...). You get to declare expenses.
2) You can then redirect the money you save back into the business or other investments. Usually the only time you have to pay big taxes on that money is at the point where you derive big income from it. Even then - you pay less taxes on Capital Gains than you do on normal salaried income.
YES - it's risky to start a business. But it's worth it when it works out.
If you don't want to take any chances, then there's another road to follow ...
It's called "Voluntary Simplicity". There's a book that everybody should read called "Your money or your life" http://tinyurl.com/4qrlb that to a certain extent has changed my life quite a bit.
Basically - the whole premise of the book is to reduce your expenses as much as possible, get rid of debt and try to live within your means and better yet, reduce your lifestyle so that you can live within smaller means - when you make more money than it costs you to live - that's when things get really interesting.
There's another notion that people should have ingrained in them ... pay yourself first. Always automatically put aside a certain amount of money (preferably some place that will give you good interest on the money). The money you put aside from the getgo isn't money you'll be tempted to spend later on.
In any event ... whatever works for you.