I am in the midst of a financial firestorm.

When it rains, it pours...

Got news that my compensation is taking a HUGE hit for 2010. Maybe, but who knows. YEah...

So, anyway, I don't think it has a lot to do with the economy (though it could). It has more to do with my boss winding down the business. HE is closing our profit sharing, which is not all bad. I can roll my balance to an IRA, take full control, and now my family can inherit 100% if something happens to me (couldn't before). I think I am more upset about the writing on the wall. My boss is cleaning things up as he prepares for retirement. HE would love to take on a partner or sell the business, but no takers. So, makes me fret about that more. I'd LOVE to work here forever like so many of my co-workers have. Alas, too young!

He hasn't really committed to the decrease - says, "will see," as he may open a SEP IRA instead - far less administration. I suppose I have 15 months to fund my IRAs for 2010, which is good, because I will need it. In the back of my mind I wonder why my boss is giving up a $50k per year tax break. IT doesn't make a whole lot of sense... In a SEP, if he contributed 25%, he would have to give us all 25%, I believe. So obviously he is happy to give up the GIANT, LUCRATIVE tax break. Which stresses me out a bit as to why that would be. What's the next announcement? Closing up shop?

I will also have to decide if I should contribute to a regular IRA then. I don't think I can put enough away, otherwise. Without the tax break. Then I wonder if 8% to a ROTH is the same as 10% to a regular IRA, in the end, since there are no taxes on the back end. Lots to think about there.

I have to put is aside for now. Timing is TERRIBLE. I can't think about it too much.

I have to focus on dh getting well, and we will have to sit down and work on the budget once all this medical stuff shakes out.

I think this is also a bit of a kick in the butt. I knew my compensation was awesome before, and I appreciated a mostly low-stress, highly flexible job, with small kids. BUT, I think I will feel out the market a bit this year and see what else is out there. Not really ready to jump ship. But I think I Would feel less stressed about it all if I knew what my options were. & for the long run, I may need a bargaining chip. I will consider it a trial run/covert option to see what kind of salary other firms are willing to pay me.

In other news, I should get a raise Monday, so I am trying to hold off panic. I kind of get the feeling most people don't really care that much about money being put away for retirement. To me, this is a HUGE hit. I have really relied on it, though I knew this day would come. Anyway, I do not expect a salary adjustment (to make up for lack of profit sharing), because my boss was very vague and clearly wasn't sure what he would do.

I discussed it with dh yesterday, and told him, "We will worry about all this when you recover." I've got other things to deal with right now!

Our insurances have gone up about $4k this year, for various reasons, so this is not helping the UGLY.

2009 was really prosperous for us. I am bummed that 2010 is starting out so freaking opposite!