After lurking on this sub for a long time, I finally have a reason to post. I always hoped my first post would be one of those "Help! I suddenly got a $500K windfall. What should I do?" Even though I'm posting under different circumstances, I'm still very optimistic.
Some background: I am 35, I live in NYC, and I have about 12 years of experience in my field years, 5 years of experience in my field working in advertising agencies (this is relevant later).
My field is very specialized, it requires years of experience, and you can't fake it. However, to an advertising agency, it is considered overhead. It does not generate revenue, and job security is dependent purely on what executives deem important (at that point in time), and pressure from parent holding companies to reduce costs.
In March, I found out my job would be eliminated at the end of April. In the meantime I managed to increase my emergency fund to $30K, and have budgeted out my finances without a job through the end of 2017. I also have a good relationship with my now-former CEO, and she'll be a good reference. During my last month, I know that I earned even more respect from her because of my conduct during the transition process.
There are probably less than 50 people in the world with my experience, so when job opportunities come up, I'm either a shoe-in, or a finalist from a very large pool of candidates. That said, the job just isn't secure and it never ever will be.
This is the first time in my life where unemployment doesn't mean panic, I feel like I can turn down jobs that aren't a good fit and find the right opportunity. I also have a professional network of advertising agency c-level execs, and industry 'legends' who speak very highly of me, even going far enough to make calls on my behalf.
I have an opportunity to freelance and I don't know the first thing about it. The job would be working for a small business owner, and having a few advertising agencies as my clients (probably 8 hours a week on-site, 32 hours working from home). I see this opportunity as an investment and a trial-run for myself, if I like freelancing I have a strong network to tap for more work. If I hate it, I can go back to my original plan.
I'm not sure what data points to include, so I'll list the basics here: This is my second layoff in 3 years. My salary was 75K between 2011-2013, 90K from 2013-2014, 105K from 2014-2015, and 120K from 2015 to present. As I said, I view this freelancing opportunity as an investment and experiment. I'm not necessarily looking to raise my income in the short term. I'm cool with a pay cut for a little while.
I'm single with no children. My rent is $1,600. Cell phone, cable, and internet are $350 per month. I make an $800 payment monthly for a student debt consolidation loan. No credit debt, about 100K in available credit lines.
I currently qualify for unemployment (and Medicaid as a result of unemployment). Unemployment is $1,600 per month. If I go freelance, I will likely forfeit my unemployment claim for the year, and I will certainly be responsible for purchasing my own health insurance.
Credit scores at 700-750 range across all 3 bureaus.
Potential expenses:
- I have a 112 sq ft. space I can designate as a home office.
- I have to purchase my own health insurance.
- I have to withhold taxes myself, and pay them at end of year.
- Cell phone, cable, and internet, are around $350 dollars per month.
- I have an iMac, but will probably need something portable, and plan to buy a new laptop purely for business use.
What I don't know:
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Income taxes. Should I ask to be paid by W2, or should I form an LLC? What are the benefits of both?
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How do I calculate my fees/ retainer? I'd like to figure out a range, from rock-bottom minimum to best case scenario.
If anyone has suggestions for resources where I can find this info it would be greatly appreciated. Any advice or personal experience is also appreciated!
Submitted May 12, 2017 at 08:17AM by Jmk1981 http://ift.tt/2q9iz9K
