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Does job hopping hurt more than help?

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I have switched jobs three times within the last seven years.  Fortunately, all the jobs I had were professional and my bosses were very nice.  I have never switched jobs because of workplace issues, in fact, I was promoted on two of three jobs I had.  The reason for my job hopping is money, each time I change jobs I get a substantial increase in salary.  My thinking is I will be much further ahead in terms of salary in 10 years opposed to someone who stays on one job waiting for cost of living raises.  My strategy seem to be working well but my former coworker has made me a little hesitant.  He thinks that I may get ahead on salary be will not get vested anywhere when it comes to retirement.  He also thinks that the frequency of job changes will look bad on my resume and cause future employers to think twice about granting me interviews or hiring me.

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