tunes

I’ve never agreed with you so much on a topic before

Gunfighter

Yet that is the primary focus of the R&I Committee. I would rather they focus on providing more education on the other options that fall under the Modern DB umbrella like the VAP and VBP. Perhaps we could reach better overall returns in one of those plans. Why aren't we hearing more about those options?

Trip7

Alot more education is needed. Compared to the overwhelming majority of Americans we are very highly paid and even the SEC considers us wealthy, sophisticated investors. We have access to investments regular Americans don't have, and with proper due diligence, an opportunity to build wealth rapidly.

https://www.whitecoatinvestor.com/10...or-investment/

GogglesPisano

As long as pilots are dispensing financial advice. Should a high-earner:

1) Pay off debt (low interest car/mortgage) or,
2) Backdoor Roth?

LeineLodge

Typical advice is to max tax-protected space first and then move on to filling other buckets.

That would favor the back door roth in your question. The idea is you only have so much space to shelter $ from taxes, so make the most of it. If you don’t use the IRA space this year (technically before tax day next year) it’s gone forever.

The caveat would be some extenuating circumstance like PMI on your mortgage that you want to ditch, ARM/balloon terms on the mortgage or some other unfavorable terms.

Nobody can say definitively though. It depends on your age, risk aversion, the rest of your financial picture, and a zillion other things. They’re all good $ moves so you really can’t go wrong.

JMO but I don’t like to pay interest for cars. So I’d personally put that at/near the top of the list and then save up to pay cash for the next car when it’s time. That will free up cash to toss into these other buckets in the future

GogglesPisano

Thanks LL. Good advice. This will definitely be our last car loan.

Schwanker

This is not an ideal investment. Im wondering if the real intent of this is to create a vehicle where large lump sum contributions can be negotiated from the company than ALPA determines whose notional account is credited. This would create a “squeaky wheel gets the grease” scenario creating haves and have nots. I’m sure the “decision makers” among ALPA would fall on the favorable side.

Why else are they talking about “weighted” plans?

Already witnessed a lopsided targeted DC scheme once. Not interested in repeating.

Crown

I get that. Make our DC 20% and pull it from somewhere else.

Falcon20

For those that say they would rather have direct pay instead of increasing DC and other soft money items. I think (and may be wrong) but after one contract cycle the pay rate gains will be normalized compared to other carriers. The soft money items like increasing DC, vacation day value, training day value, per diem, will build a base that pay rates can build upon in the future.

Then again I could be completely wrong. As the mrs tells me routinely.

Scoop

I think a DC increase is a no brainier but I am curious about the DB options.

How does the fact that plenty of our guys are getting/going to get PGBC payments affect our ability to reinstitute some kind of DB?

I have seen guys post comments regarding this over the years but am not sure it's anything other than urban legend.

Scoop