Dalpa R&I Roadshow
09-27-2018, 07:19 AM
#382
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,456
I've heard either double net worth or net worth plus 10 years future earnings as a guide. I'm wondering why 10M+ is what most of us should have. I guess I'm just not as well off as I thought.
09-27-2018, 07:32 AM
#383
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,614
Add up your 401K, equity in your house and the present value of expected future payments like PBGC, Mil Retirement and SS payments. You can start with a smaller policy and bump up the coverage every few years as you deem necessary. I started with $1M as a new hire and have since bumped it up several times on the policy renewals.
09-27-2018, 08:18 AM
#384
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,456
Great advice SF. I've found good rates at both USAA and Nationwide Private Client through Delta's Youdecide program on DeltaNet. It will cost you a few hundred dollars a year.
Holding several million dollars of real estate will demonstrate that need. At that point, you will get liability coverage in the company name and have yourself listed as an additional named insured on the company policy.
Add up your 401K, equity in your house and the present value of expected future payments like PBGC, Mil Retirement and SS payments. You can start with a smaller policy and bump up the coverage every few years as you deem necessary. I started with $1M as a new hire and have since bumped it up several times on the policy renewals.
Holding several million dollars of real estate will demonstrate that need. At that point, you will get liability coverage in the company name and have yourself listed as an additional named insured on the company policy.
Add up your 401K, equity in your house and the present value of expected future payments like PBGC, Mil Retirement and SS payments. You can start with a smaller policy and bump up the coverage every few years as you deem necessary. I started with $1M as a new hire and have since bumped it up several times on the policy renewals.
10-06-2018, 12:25 PM
#387
seeing the large hubs...
Joined APC: Oct 2006
Position: 73N A
Posts: 3,748
I was talking with a doctor friend of mine who is a radiologist, who makes good money - probably between $300K-$500K I"m guessing. I asked him how his retirement worked - it is the same as one of ALPA's proposals - a MBCBP Investment concept after they reach the 415(c) limit.
And their percentage? 5% - because he said that if the return drops below the number the group has selected, it has to be funded by the "investors" - ie, us, to get to that 5% return. So they pick a low number so they don't have to throw in excess money in a year of bad returns.
So this isn't a crazy idea like I was thinking.
And their percentage? 5% - because he said that if the return drops below the number the group has selected, it has to be funded by the "investors" - ie, us, to get to that 5% return. So they pick a low number so they don't have to throw in excess money in a year of bad returns.
So this isn't a crazy idea like I was thinking.
10-06-2018, 03:12 PM
#388
Gets Weekends Off
Joined APC: Feb 2011
Posts: 766
So, if I’m reading this correct; if the required rate of return isn’t met by the advisors we pay to ensure it is met, we artificially pump more money into it for the shortfall? Did I read that right? I’m in the wrong business, I need to go manage one of these MBCBPs.
A lot of times people refer to doctors and lawyers as proof that this is a good idea. Educated folks, yes. Expert money managers, not necessarily. A lot pay “wealth managers” reculoisly high fees to provide sub market returns. This has a tendency to make them some of the worst people to ask for investment advice as they’re completely disconnected from their wealth, they just earn the paycheck. I’d say their cross section of great money managers is probably similar to ours as a pilot group.
Just speculation, no statistical proof.
A lot of times people refer to doctors and lawyers as proof that this is a good idea. Educated folks, yes. Expert money managers, not necessarily. A lot pay “wealth managers” reculoisly high fees to provide sub market returns. This has a tendency to make them some of the worst people to ask for investment advice as they’re completely disconnected from their wealth, they just earn the paycheck. I’d say their cross section of great money managers is probably similar to ours as a pilot group.
Just speculation, no statistical proof.
10-06-2018, 04:35 PM
#389
seeing the large hubs...
Joined APC: Oct 2006
Position: 73N A
Posts: 3,748
A lot of times people refer to doctors and lawyers as proof that this is a good idea. Educated folks, yes. Expert money managers, not necessarily. A lot pay “wealth managers” reculoisly high fees to provide sub market returns. This has a tendency to make them some of the worst people to ask for investment advice as they’re completely disconnected from their wealth, they just earn the paycheck. I’d say their cross section of great money managers is probably similar to ours as a pilot group.
Just speculation, no statistical proof.
Just speculation, no statistical proof.
10-06-2018, 06:21 PM
#390
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,456
The ALPA R&I working group isn’t trying to reinvent the wheel. They are looking to other high income earners for ideas because of the limits for tax advantaged savings.
I’m just not sure if giving up control is worth having a tax break.
I’m just not sure if giving up control is worth having a tax break.
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