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  #111  
Old 03-29-2016, 11:17 AM
act2106 act2106 is offline
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Originally Posted by lookingon1 View Post
I'm sorry but those raises don't seem so significant. I mean let's say 1800 * 10 = 18000. Ok so you add 20k to your salary over lifetime? Not so significant in light of everything.
Well, 1800 seems lower than average, but even accepting the 1800, future raises are usually a percent increase of your prior salary, so if you pass exams early in your career the exam raises are accumulated at whatever rate of raises you get over the life of your career. So it becomes significantly more than 20,000 over your lifetime salary.
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  #112  
Old 03-29-2016, 04:54 PM
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act2106, no I don't think so. These are fixed based exam raises. So no matter your salary you will get the '1800'. A typical raise though is based on your existing salary. So I don't think you are right. Now it does have an indirect on your ultimate raise, but the exam raise is about 20,000 lifetime (and the indirect raise would not be so much, based on 20,000 lifetime). I think the hours we actuaries put in can lead to 25000+ raise if we worked this hard at anything!
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  #113  
Old 03-29-2016, 05:44 PM
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act2106, no I don't think so. These are fixed based exam raises. So no matter your salary you will get the '1800'. A typical raise though is based on your existing salary. So I don't think you are right. Now it does have an indirect on your ultimate raise, but the exam raise is about 20,000 lifetime (and the indirect raise would not be so much, based on 20,000 lifetime). I think the hours we actuaries put in can lead to 25000+ raise if we worked this hard at anything!
Yes, I think the bolded was the point that act2106 was making.

If you get an exam raise of $2,000 that means that your 3% merit increase 4 months later is now a little bigger than it would have been otherwise. Compound. Profit.
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  #114  
Old 03-29-2016, 06:54 PM
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Can we please do the math? Is it really that much? It seems like 2000 would have a small impact
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  #115  
Old 03-30-2016, 10:29 AM
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Can we please do the math? Is it really that much? It seems like 2000 would have a small impact
Over the course of a 30 year career (most actuaries will work longer than that) a $2,000 raise in year 1 will result in a $4,854.53 higher final salary and $98,005.36 in additional lifetime earnings if we assume 3% annual raises.

And that's just one $2,000 raise. 10 $2,000 raises (8 exam raises + 2 designation raises) will obviously have a significantly greater impact.

Of course the gotcha in all this is that we are assuming that at no point does the employer make any attempt to compare a person's salary to market or at least to other people in similar positions within the company and adjust as appropriate. At some companies, that might be a reasonable assumption. At others, it is not.
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  #116  
Old 03-30-2016, 11:21 AM
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Actuarial present value of a $2,000 exam raise or GTFO
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  #117  
Old 03-30-2016, 12:50 PM
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Over the course of a 30 year career (most actuaries will work longer than that) a $2,000 raise in year 1 will result in a $4,854.53 higher final salary and $98,005.36 in additional lifetime earnings if we assume 3% annual raises.
This is why I'd much rather take a raise over a bonus any day.
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  #118  
Old 03-30-2016, 02:08 PM
MooBeay MooBeay is offline
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Can we please do the math? Is it really that much? It seems like 2000 would have a small impact
We? I am sure you can do the math yourself. If not, don't worry about exam raises.
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  #119  
Old 03-30-2016, 06:44 PM
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Seems like the sort of information which is typically company confidential and not meant to be distributed to the whole wide world, there are separate salary surveys that give you a really good indication.......
I bet if you called DWS, they will give you a copy for you to look at, for your eyes only.
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  #120  
Old 03-31-2016, 08:57 AM
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We? I am sure you can do the math yourself. If not, don't worry about exam raises.
Nice.
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