Does Everyone Over 40 Long For a New Career?

One of the first things I noticed upon meeting my new physical therapist was how unhappy he was in his job.  He began his career as a self-employed physical therapist specializing in workman’s comp injuries. His primary client had been a large factory in the Milwaukee area.  His days had been long since he had to cover all three shifts, but the pay was excellent.  Then in the early 2000's the factory was sold. The new owners had stringent business insurance requirements he was unable to meet. His contract was terminated and he was replaced by a large company.  He was offered a job with this company, but declined.  He questioned the educational background of their therapists and the salary he was offered was insulting.

He spent the next year working with his two small remaining accounts and trying to secure new business, but Milwaukee had lost numerous manufacturing facilities since 1986 and the ones who remained were not looking for a physical therapist.  Eventually he closed his business and accepted a position as a staff therapist with a company affiliated with one of the local medical providers. That was where he was working when I met him.

A lot has changed since my therapist graduated in 1986:

Around the end of the 1990's, a bachelor's degree in physical therapy was slowly replaced by master's and doctorate physical therapy degrees. My therapist who holds only an undergraduate degree was grandfathered in. He tells me his company recently hired a new graduate with a master’s degree.  He points to her and tells me she doesn’t know any more than he does.  She earns an annual salary of $55,000 while he currently makes $75,000. He also has a 401(k), is eligible for state unemployment if he finds himself downsized and has medical insurance. He had had none of these while self-employed.

What he doesn’t like about his job:

He always has to be on.  He has to meet and talk to patients all day while his ex-wife who works as a financial analyst can just sit and stare at her computer when she doesn’t feel like working.

He is now billable and has to track his time hourly. He works with 24 different patients at all times.  He has to have vacation time approved in advance. He can’t just take an afternoon off on a nice day or not go in the day after a holiday if he doesn’t feel like it.

He can’t drink a soda while working with a patient. His new company told him this is rude.  To do so he would have to offer them a beverage as well and they are not in the beverage serving business.

His job is boring.

Every day is the same.  Of his 24 patients three of them usually have elbow tendinitis – my affliction. The treatment for tennis elbow is always the same. 

I suggested working with people in their homes; thinking he might enjoy that more.

He said that would be much worse and more boring than his current job.  You then work with the elderly and your job consists of, “See you again on Wednesday Betty be sure to squeeze the bag of beans when I’m gone.” At least in his current job his patients usually get better.

I asked if he had to maintain continuing education. 

He does and he likes doing that, he enjoys learning something new and his employer pays him for his time while he is out of the office.   He then got up and left.  When he returned he said he had just signed up for a day of CPE.

If he could have a do-over what would he do?

He’d be a TV reporter, but at 45 he thinks he is too old for TV.

At our last appointment he said he thinks everyone longs for a career change after age 40. It is hard to know at age 18 what you will make you happy when you are 40. 

As for me, I kind of think I would have preferred a career as a physical therapist rather than as an accounting manager, but I choose accounting, so I am making the best of it. As to everyone, I am sure many people do long for a new career.  I heard my company's President make two comments in the last week about not being happy with his career choice - running the family business.  He is 47 and at one point wanted to be a lawyer or a politician. 

Do you think everyone over 40 longs for a new career?

Financial Considerations in a Collaborative Divorce

 
Last week I ran into an acquaintance who is in the process of getting a divorce. She tells me things are going smoothly; it is a collaborative divorce with no attorneys involved.  Both she and her spouse are going out of their way to be civil towards each other for their children – a 12 and 14 year old.  They are also amicably splitting their assets and will have joint custody.

The accountant in me had to say, “Don’t forget to discuss which parent gets to deduct the children on future income tax returns.”

She responded with “I never thought of that.” and “How do you know that?”

I’ve worked in some aspect of accounting for almost 30 years and have my CPA license, but to be honest, most of what I’ve learned about the financial pitfalls of divorce comes from co-workers and friends complaining after things have gone badly.

Here are a few tips:

Claiming your children as dependents:

Usually the parent who has custody of the children for the greater part of the year will claim them as dependent exemptions on their income tax return. This is an important designation because most often the parent who can claim their children as deductions is also the parent who receives other tax related benefits and credits.

Head of Household

This filing status is only available to the custodial parent. It provides a bigger standard deduction and looser tax tables than single taxpayer status.

Higher education costs:

The spouse that claims the children as a dependent is the parent allowed to claim the American Opportunity Lifetime Learning Credit (this can be worth up to $2,400 during the first four years of a child’s education). If you do not claim your children as dependents you can’t claim this credit even if you were the parent paying their college bills.

Get it in writing:

In joint custody situations parents can take turns claiming the children, but this has to be in writing. Make sure it is part of the divorce agreement.  If the non-custodial parent wishes to claim the child, the custodial parent must waive their right to claim the child on IRS form 8332.

Don’t assume you are entitled to the exemption because you pay child-support:

A newly married co-worker filed a joint tax return with her new husband claiming his daughter from a previous relationship as a dependent. (She thought the first parent to file gets the exemption).  The child’s mother also claimed the child despite being told my-coworker had claimed her.  His return was audited, the IRS deemed the mother as the custodial parent and eligible for the deduction.  My co-worker and her new husband had to pay back taxes were fined and required to pay interest on their return.

Alimony:

Alimony is considered taxable income for the recipient.  If you receive alimony make sure you make estimated payments or set aside a portion of each check so you are prepared for your tax bill the following year.

Alimony payments are deductible by the person paying them, but only if made on account of a divorce decree or written agreement. An oral agreement will not suffice and payment must be in the form of check, cash or money order.   

Retirement savings:

401(k) distributions are taxable.  If you want your spouse to be responsible for taxes on distributions they receive from your retirement account make sure your divorce papers include a (QDRO) qualified domestic relations order. Without a QDRO, you may end up paying the tax bill.

Spouses do hide money:

This is probably the biggest lesson I can give you.  During my 30 years of working in accounting departments I have been asked more than once to not pay a commission, bonus or to withhold a raise until after an employee’s divorce is final.  I’ve seen this at more than one company and the request is always granted – it is the employee’s money.

I’m not familiar with how collaborative divorces work, if lawyers are not involved I recommend consulting with one anyway to make sure all interests are covered.  Consulting with a tax accountant can’t hurt either.

Are you aware of financial pitfalls in a collaborative divorce?

An Insider’s Look into the Scholarship Selection Process: See My Guest Post....

I have been a member of my professional organization’s scholarship committee for the past 4 years. I share the process we use to select a scholarship recipient and a few insider tips over in a guest post on Femme Frugality's site.  The competition may not be what you think.

Corporate Career Interview

Have you ever considered a career in corporate America? Wondered what it would be like working for a large company? What it takes to be successful? Then you’ve come to the right place.

Today Adrian of Adrian's Crazy Life shares her career story while providing valuable insight into working for a corporation in today’s savvy career interview:

How did you get started working in corporate America?

Working in an office was the last thing I wanted.  I wanted a career in the performing arts, but one of my music teachers so squashed my dreams that I made a complete right turn, dropped all my music classes, and started taking computer classes instead.  I started at Kodak’s Corporate offices as a photocopy clerk and a receptionist when I was about 18.  I’m 53 now and I’ve worked pretty much continuously since then. 

What is your career history?

Even though I’ve worked for my current financial services company for 23 years, before that, I worked at a ton of different places.  I always had some kind of clerical or finance job, but I worked at Rockwell, Allergan, Rite-Aid, DeLorean, Coca-Cola, a real estate firm, a pharmaceutical company, all sorts of places.  Some were very small and some were the largest companies in the world.  Some of them I’ve quit, some I’ve been laid off, and some I’ve been fired from.  It’s been an interesting career. 

DeLorean was funny because all the executives had company cars and they were all these identical silver chrome cars, so they had to number the parking spaces, so each of them could find the correct car every night! 

What kind of experience and preparation helped you the most?

Nothing special, really.  My mother insisted I take a typing course in High School.  I disagreed bitterly with her at the time, but I can type 75 WPM, so I guess it came in handy.  I took a couple of very early programming courses, but the rest is pretty much self-taught.  I think it’s important to just have the idea that there is always a way to get what you want.  Even if you don’t think so in the beginning, if you are determined and stick with something long enough, you’ll find a way through, under, or over that obstacle to get what you really want. 

I do think that a college degree is over-hyped.  I hear so many people saying that they want to go back to school to do this thing or that thing.  I say, just find an entry-level spot doing it and work your way up from there.  School is such a tremendous expenditure of time and money and it doesn’t always pay off.  I know so many people who have a degree in something and work in a completely different field.  Almost no one in my family has a degree and we are all doing just fine. 

Would you recommend this same path to someone starting out today? Why or why not?

I don’t know.  It was kind of hit and miss, really.  I didn’t have any particular plan in mind, but things worked out pretty well – each job would be slightly better and pay more than the one before.  It was pretty tough sometimes.  I’ve had some really bad bosses and some really good ones.  I think I’ve stayed where I am for so long because I have good bosses and I’d be worried about getting with a bad boss again.  A 40 hour week is a long time when someone is making you miserable. 

I think the tough part was that I never felt like I could take a break, even when I had my children.  I had a brief maternity leave and then I needed to get right back to work because we had bills to pay that weren’t just going to disappear because I had a baby to take care of.  But it worked out just fine.  I found great babysitters and family members to watch my 3 sons and my bosses were always very good about allowing me flexibility to spend some time home with them.  And I would make the most of what time we did have.  I did a lot of homeschooling with my youngest, even while working a full time job.  I had him reading by age 4 and doing math and all sorts of stuff.  I would carry flash cards in my purse and we would listen to Spanish tapes in the car.  I even had special placemats at mealtimes and educational posters all over the walls.  It was really fun and rewarding for both of us.  And all 3 of my boys have turned out awesomely, so I guess it worked out very well. 

What do you like best about your work?

I am a button-pushing fool.  I love to do stuff with computers, particularly spreadsheets and huge databases.  A lot of my job is finding errors on phone bills and trying to find better ways to save money on our telecom services.  Being able to dig deep into the data and really understand it has helped me to do a good job with that.  Over the years, I have probably saved the company around five MILLION dollars, all by myself.  I definitely earn my keep! 

What is your biggest headache?

Office politics can be kind of tricky.  I can be outspoken sometimes and I’ve stepped on a few toes.  I have to learn to kind of keep to myself and focus on the work sometimes and not offer my opinion as much.  Friendships at work can be kind of interesting and sometimes it has a very “High School” feel with cliques, and teacher’s pets.  I try to stay positive and not get a lot of energy to negative stuff or negative people. 

What are the important personal qualities or abilities necessary for a person to be successful working in a large corporation?

Wow, good question!  Technical skills are important, but not nearly as much as interpersonal skills.  You have to be able to get along with people and be able to articulate your ideas well.  Being reliable is huge.  I am a complete stickler for meeting deadlines and keeping commitments, and many people aren’t.  If you get a reputation for being flaky and undependable, you aren’t going to do well.  Deliver what you promise – every time! 

How many hours do you work each week?

It depends.  I’m salaried, so I have a bit of flexibility and we also get one or two telecommute days per week, which are like gold!  But I average at least 40 hours in most weeks and up to 50 or so when I’m working on a big project.  I also do a lot of volunteer work and have been named one of my company’s top volunteers for the last two years, so I work probably another 20-30 hours a month as a Scout leader and helping with my son’s youth group. 

How has your work or company changed over the years?

It’s shocking to realize how much the technology has changed over the years.  Desktop computers simply didn’t exist when I started and when they came out, we would have like ONE that the whole department would share.  I literally found a switchboard that I’ve actually USED in a museum.  That’s just freaky.  Typewriters have gone completely extinct in my lifetime.  I can’t remember the last time I saw one.  I don’t know if someone starting out in an office today would know how to use one, yet they used to be in every home and every office.  You wonder what technology will be like 20 years from now? 

I see you have a passion for organization.  I have written before about my messy desk at work.  Do you have any suggestions to help me become more organized?

Part of it is understanding WHY your desk is messy.  Here’s a big secret – my desk is messy too, but it’s an organized messy.  I’m a very visual person and if I put work out of sight, I am likely to forget about it.  So I have different zones on my desk for different steps in my process.  If it needs to be logged in, it goes here, if it needs to be input, it goes there, if it needs research, it goes into this pile.  You have to respect the style that works best for you, but if you can set a time for even 5 minutes a day to organize yourself and maybe even make a quick to-do list, you’ll get a lot more done in a lot less time, and you’ll be able to lay your hands on any paper on your desk in 2 seconds.  I’m not there to have a pretty desk, I’m there to get stuff done! 

Is there anything else you would like readers to know about yourself or your career?

I guess I would say don’t believe everything people tell you.  People say you can’t get a good job without a college degree – bull!  You can’t do a good job of raising your children if you work – bull!  Women can’t get ahead in the workplace – bull!  I know a lot of smart and determined women who do just fine.  Look at the real situation and decide for yourself, and if you really want something, don’t let anything stand in your way.  And life is too short to put up with bad bosses – if you’re unhappy somewhere, there is a better place for you.  Put all your energy into finding it – rather than wasting your time putting up with some jerk who doesn’t believe in you.  I will work my heart out for someone who appreciates me, but someone who is critical and too controlling, they aren’t going to get my best effort.  Remember that if you are the boss. 

Where can we find you?

I’m always hanging out over at Adrian'sCrazyLife.com.  I’ve been blogging and posting several times a week since 2007.  Mostly organizing and financial tips with some parenting ideas and a hint of crafty stuff thrown into the mix. 
 

*Part of Financially Savvy Saturdays on Femme Frugality and brokeGIRLrich*

Should Everyone Graduate With a Liberal Arts Degree?

In October The Savvy Reader Book Club read Andrew Hacker and Claudia Dreifus's book Higher Education?: How Colleges Are Wasting Our Money and Failing Our Kids---and What We Can Do About It. An interesting albeit controversial statement the authors make in an interview about their book on NPR is:

If we had it our way, everybody would graduate with a liberal arts degree. Of the three million freshmen who arrive on campuses each September, over half of them - have already chosen vocational majors, like fashion merchandising or sports management. This is a real misuse of what could be four precious, rewarding years.

Take New Mexico’s State University for instance. You will find students majoring in hotel, motel and resort management. Classes for this major include Quantity Food Production, Gaming Operations and Beverage Management. Hacker and Dreifus write:

It isn’t education. It is training. At best, it should be a sequence in a community college or in a professional program at post graduate level. Nor is beverage management an exotic example. Most campuses now devote more resources to vocational concentrations, since their majors now outnumber those in liberal arts fields. In 2008, the most recent figures as we write, degrees in the “hospitality” sphere surpassed those awarded in philosophy. (Pg. 99)

Then there is the business major:
Business is currently the most popular of all undergraduate majors. Regardless of the author’s opinions about whether it rates as higher or even as education, it has gained a prominent place on our campuses, not least by displacing less practical majors. Hacker and Dreifus then looked at what is being taught and learned it its classes. Here is what they found:

On the one hand, half a million freshmen enroll in business programs each year, hoping that what they will learn will give them an extra edge in their subsequent careers. On the other hand, professors are needed if there are to be classes. But it was soon evident to us that it wasn’t completely clear to either professors or students exactly what the students should be learning. Curriculums are filled with lists and locations along with quasi-theories from their field’s academic journals. Professors ask students to play being senior management, and plan corporate strategy ranging from outsourcing sneakers to selling sunglasses.  (Pg. 104)

What should business programs be doing instead?

We’ll start by saying that what is presented in their classes has no relation to what they’ll be doing in their first job. Whether from Wharton or Gulf Coast, when undergraduates emerge with a degree, if the Bank of America hires them, it won’t seat them in boardrooms to plan global strategies. More likely, they will be sent to a Fresno suburb, where their job will be crunching numbers on mortgage applications. Then the newbie will listen while senior colleagues explain how and why they make their decisions. We’d like to think that liberal arts students can just as quickly pick up what will be expected in their first years on the job. (Pg. 104)

We wish we could persuade undergraduates contemplating business majors to choose the liberal arts route. But this won’t be easy so long as anxieties about the future infuse their decisions. A more effective step would be for colleges, whether freestanding or within universities, to simply state that they don’t and won’t offer vocational majors. (Pg. 105)

I’ve heard this statement before. In this report on higher education by Anya Kamenetz she writes:

She would abolish the major of “business,” the single most popular undergraduate major, but perhaps also the least rigorous, and which produces relatively poor-achieving students. Instead, she’d fold practical business classes into the economics major.

I find all of this very interesting, since my undergraduate major was general business. I choose this major thinking I would have more flexibility with my career upon graduation than if I majored in accounting. I didn’t want to end up sitting at a desk all day making journal entries. The funny thing is after I graduated I didn’t feel as if I knew how to do anything. To find a job I emphasized my high school bookkeeping classes and my typing skills until I talked myself into a job in an accounting department – where I would end up sitting in a desk all day making journal entries.

No one bothered to tell me what Sheryl Sandberg also points out in her book Lean-in that the majority of job skills needed are acquired on the job. I would soon learn many of my co-workers at the brokerage firm where I was newly employed had degrees entirely unrelated to their job. This firm wanted employees with a degree, but they didn’t care what that degree was.   

Would I have been better off with a liberal arts degree?
Personally, it would have been more rewarding. In the book the authors write:

We’ve met former business majors, now nearing middle age who say they regret not having studied philosophy while at college. We have yet to meet a philosophy major who felt he or she should have chosen business. (Pg. 108)

When the authors describe the two business lectures they attended I cringed at the memory of sitting through similar classes covering growth strategies, product life cycle, etc. I was bored or as Seth Godin in his book Tribes: We Need You to Lead Us describes it - I was sleepwalking. I ultimately returned to college to take the accounting courses required for the CPA exam anyway. I do think I would have preferred and received a greater benefit from taking history courses than sitting through all those business management classes that seemed to cover the same material. 

If I could have a do-over would I major in liberal arts?
It is very unlikely. I needed a career path that would guarantee I could support myself. Knowing what I know now instead of a general business degree I would have pursued forensic accounting - a degree that probably didn't exist when I was in college.  Perhaps a double major of criminal justice and accounting would have sufficed. I would also try to incorporate more history, English and philosophy instead of just taking the required credits. Actually the current accounting major requires students do just that.

Should Everyone Graduate With a Liberal Arts Degree?
Should they? Maybe. Will they? No. I think most parents and many students feel the same way I did. They need to choose a major aligned with their interests and abilities that will also give them a decent standard of living and the ability to pay off their college loans. In many cases that will be some type of business degree.  I also think many parents push their children into a university degree when they would be off pursuing a trade or vocational degree from a technical college.   

I will continue to explore vocational degrees and college credit requirements in future posts.

What do you think? Should everyone graduate with a liberal arts degree? 

The Adjunct Trap

This month The Savvy Reader Book Club is reading Andrew Hacker and Claudia Dreifus's book Higher Education?: How Colleges Are Wasting Our Money and Failing Our Kids---and What We Can Do About It. Today’s post is the first in a series of posts I will be writing this month inspired by this book.

The book begins by informing us that the American colleges and universities are bound by a caste system. At the top of the caste are 320,000 associate and full professors, most of whom have tenure or will soon receive that reward. Below them are about 170,000 assistant professors, of which most are on the “tenure track.” The third tier consists of instructors and lecturers who aren’t in line for promotion and who handle introductory sections at modest salaries and benefits. (A number are faculty spouses unable to find other employment). The fourth and fifth castes are made up of part-time adjuncts and graduate assistants. They are the contingent people of the campus - exploitable, disposable, and impoverished by low wages. They do the bulk of the undergraduate teaching at many universities. (Pg. 15)

What is an adjunct?
Adjuncts belong to a diverse group of teachers called contingents, who are hired to take on chores regular faculty members don’t want to do. They come from respected professions like lawyers and film producers who teach one evening course (largely because they enjoy it) or are among the gypsy scholars who commute among as many as four campuses in a single week. Pay rates are shamefully low. The American Federation of Teachers found the average is about $3,000 per course, which means many get less. And of course there are no benefits.

Here is an example of the huge inequality found in the adjunct/professor pay structure:

At Queens College, a branch of the City University of New York, the pay is better than average but the disparities are typical. When students walk into the gleaming building that is Powdermaker Hall, they might see one classroom where a full professor is explaining the economic ideas of the Nation’s founders. He’ll earn $116,000 for six classes taught over nine months-$17,000 per course. In the very next room is an adjunct teaching political theory to thirty bright-eyed freshmen. But she gets a flat fee of $4,600, admittedly higher than the national average, but so is the urban cost of living. Moreover, the professor has health insurance, sick days, sabbaticals, and a hefty TIAA-CREF pension. The adjunct’s benefits are akin to W.C. Field’s reward in The Bank Dick- “a hearty handshake.” (Pg. 48-49)

Adjuncts are not respected:
Many adjuncts are not respected by the salaried faculty members and administrators and are not perceived as part of the campus community.

Why is adjunct teaching a trap?
Many women think they can have families and stay in the game by adjuncting. They get trapped there. Age and time trap them. Vagabonding from job to job isn’t so terrible when you’re young, but it takes a toll on you as they get older. In another example sited, an adjunct teacher tried to cobble together a livelihood by teaching sixteen “distance” courses. Online teaching, she said, was tougher than face-to-face instruction, because if you do it seriously, “you never get a break from it. You almost sleep with your computer. (Pg. 54)

The sad fact is it is difficult to earn a living wage teaching as an adjunct even when you teach multiple classes.

What are the chances an adjuncts position will morph into full-time?
Many years of adjuncting wouldn’t count as valuable classroom experience. Rather, for most, it’s a black mark. This was borne out by an informal survey Angelo Gene Monaco, the vice president for human resources at the University of Akron, performed. Out of curiosity, he surveyed sixty heads of departments at a sample of Midwestern colleges. Only three told him they’d even consider hiring a contingent for a full-time post. Monaco created quite a stir at the 2008 meeting of the College and University Professional Association for Human Resources when he declared: “We’ve helped create a highly educated part of the working poor.” (Pg. 53)

A real life example:
Which brings me to Kate; I’ve previously written about Kate’s disillusionment with her job after she was repeatedly passed over for promotion. Kate has since abandoned her dream of being a controller or CFO and refocused her energies on becoming a full-time teacher at a local college. She taught her first adjunct class last semester – an introductory business course.

Initially, Kate was extremely frustrated by the lack of support she received from the college. She had difficulty setting up her email, accessing the school’s intranet, and even getting a ‘teacher’s edition’ of the book. She earned $2,600 to teach the class which met once a week for four hours. She took a week of vacation from her day job to prepare and lost sleep fretting about whether to send emails to students who hadn't turned in their homework.

Next semester she is contracted to teach this class again along with a 12-week accounting class. Surprisingly, the 12-week class pays the same as the 6-week class; it too meets once a week, but for three and a half hours instead of four. I can’t imagine the accounting class taking any less time to prepare, so there goes another week of vacation.

Has Kate fallen for the adjunct trap?
Unfortunately, after reading this book I think she has.  I told her what I had learned from the book, but she refuses to listen. My experience has been when someone wants something badly they rarely listen to naysayers.

What do you think?  Is adjunct teaching a trap?

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