"A 45-year old man earns $150,000 per year and is covered by his employer's 401(k) Plan. He quits" his job and moves to a new company that has no retirement plan, but will also pay him $150,000 per year. He should be advised to:
First of all, the question is that what he will lose after leaving the job?
His earning per year is equal at both sides, still what's the opportunity cost for him?
The answer is simple, he may earn equal but if looked at it in a bigger picture he is losing 401k retirement plan and It is his opportunity cost. He may regret this after leaving the job.
