Dalpa R&I Roadshow
09-26-2018, 07:29 AM
#371
Gets Weekends Off
Joined APC: May 2015
Position: A350 Both
Posts: 7,292
If I can trade those options immediately, I'd take that in a heartbeat. If not, then give me the same kind of discounts that management gets.
09-26-2018, 08:12 AM
#372
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,614
What discount does management get? ISOs have to be granted at FMV on the day of the grant. NSOs can be granted "in the money" but that triggers income tax when they become vested. I think you are confusing the "management discount" with an increase in the stock price during the holding period.
09-26-2018, 01:30 PM
#373
Gets Weekends Off
Joined APC: Feb 2009
Position: 320B
Posts: 781
Here are some ideas from the doctors and lawyers.
https://www.biglawinvestor.com/a-law...y-real-estate/
https://passiveincomemd.com/10-perfe...-physicians-2/
https://www.whitecoatinvestor.com/bu...-retire-early/
https://www.whitecoatinvestor.com/in...-or-apartment/
https://www.biggerpockets.com/renews...ting-worth-it/
For those who say RE takes too much time, I've spent more time on APC than I have on properties this month. In that amount if time, I've identified a dozen possible acquisitions including a couple foreclosed houses, a couple NNN investments, a small class B apartment complex and two storage facilities. I am leaning toward an established two tenant strip center with NNN leases. There will be little management involvement and I can bill back the cost of property management in CAM fees. The down payment is a mix of personal savings and two years worth of DPSP Cash.
At the risk of sounding like a late night infomercial, you can take control of your financial future by directing your own investments in real estate. As you near retirement, you can move from a more active role to a more passive one through 1031 exchanges into NNN investments. The analytical skills required to interpret a proforma and conduct due diligence are less that what is required to pass a check ride. Don't fall victim to putting all of your money in wall street investments that barely keep pace with inflation. A 5% return is only 1-2% when adjusted for inflation. .
https://www.biglawinvestor.com/a-law...y-real-estate/
https://passiveincomemd.com/10-perfe...-physicians-2/
https://www.whitecoatinvestor.com/bu...-retire-early/
https://www.whitecoatinvestor.com/in...-or-apartment/
https://www.biggerpockets.com/renews...ting-worth-it/
For those who say RE takes too much time, I've spent more time on APC than I have on properties this month. In that amount if time, I've identified a dozen possible acquisitions including a couple foreclosed houses, a couple NNN investments, a small class B apartment complex and two storage facilities. I am leaning toward an established two tenant strip center with NNN leases. There will be little management involvement and I can bill back the cost of property management in CAM fees. The down payment is a mix of personal savings and two years worth of DPSP Cash.
At the risk of sounding like a late night infomercial, you can take control of your financial future by directing your own investments in real estate. As you near retirement, you can move from a more active role to a more passive one through 1031 exchanges into NNN investments. The analytical skills required to interpret a proforma and conduct due diligence are less that what is required to pass a check ride. Don't fall victim to putting all of your money in wall street investments that barely keep pace with inflation. A 5% return is only 1-2% when adjusted for inflation. .
"The Bottom Line
The economics of rental property ownership may be compelling, but the return you can achieve must be much higher than you could earn in conservative investments such as bonds and dividend-paying blue chip investments, because there are real risks, not the least of which is your own capacity to manage property and tenants."
https://www.investopedia.com/article...l-property.asp
09-26-2018, 02:47 PM
#374
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,599
Obviously there are risks. Scared money doesn't make money. Real Estate is not for everyone. And neither is a MBCBP plan which is just a gloried way to stuff money under your mattress. Most folks here believe in the simple principle of letting folks do as they please with the money they worked for.
09-26-2018, 02:50 PM
#375
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,599
Delta stock options for pilots are the only thing I can think of. I'd take that over the MBCBP
09-26-2018, 03:50 PM
#376
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,456
Delta stock has been range bound for about 4 years around 50ish. It looks like it has momentum to break out but a little bad sentiment goes a long way.
09-26-2018, 10:17 PM
#377
Gets Weekends Off
Thread Starter
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,971
I agree, funding retirement is of the utmost importance here. However, I'm not interested in funding anything I am not in control of. Before we look at a DB plan of any sort, I think the other piece to the retirement puzzle is healthcare. That, along with taxes, are two of the hardest parts of retirement planning. All we can do is make an educated guess, but my educated guess is that both will be significantly higher when I retire. Because of this getting funds into a Roth account RIGHT NOW is important, getting the company to fund an HSA RIGHT NOW is important and negotiating a medicare supplement is extremely important.
Those are my priorities, not necessarily those of everyone in the pilot group, but they are the three things that make the most sense for me to ensure a stress free retirement.
Those are my priorities, not necessarily those of everyone in the pilot group, but they are the three things that make the most sense for me to ensure a stress free retirement.
I think you are a bit myopic when you say everyone needs to get funds into a Roth RIGHT NOW. That is not the case. As far as I can tell, right now my retirement income will be under 50% of what I make now. It makes more sense for me to save 35-39% in taxes now than later. Every financial person I’ve talked to has advised me to go the traditional contribution way. I plan on doing a Roth conversion during the first couple years in retirement. That’s the plan but plans change with circumstances.
We agree on the HSA funding and retirement healthcare. But you will find A LOT of retired military with Tricare who will say no way just like you are to a follow retirement plan.
Denny
09-27-2018, 04:52 AM
#378
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,599
For those who hold rental properties keep one thing in mind. With your Delta income you need to carry a massive amount of liability insurance. 5 million should be considered a absolute minimum with north of 10 being better. This applies even if they are in LLC’s.
09-27-2018, 04:57 AM
#379
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,599
Great point. Rental properties or not, individuals with high income and/or high net worth like a Delta Pilot should have umbrella insurance.
09-27-2018, 06:01 AM
#380
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,456
Ok, I agree with the need but how do you get to $10 million?
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