*MINIMUM BALANCES* New Polling Needed
12-23-2019, 04:41 AM
#61
Gets Weekends Off
Joined APC: Jul 2013
Posts: 10,535
What are you not getting? I did NOT assume any personal contributions. This has nothing to do with all the other investments you have. I assumed $0 starting balance because you had a hissy fit over it. So, with a $0 starting balance, 30 year investment horizon, annual COMPANY contribution of $50,000 divided over 12 months (because of the proposed increase to DC 25%) and a 7% return comes to $5,082,399.17. If you want to figure out the inflation level go for it...but you need to add 768k to the figure above to account for my low-balling the total investment available for the company to put in now.
As far as your last sentence goes, we both know that is a BS figure. Just saying something doesn't make it true. Prove it. At least I used real figures and was very conservative. All you investment guru's should well out perform 7%.
Denny
As far as your last sentence goes, we both know that is a BS figure. Just saying something doesn't make it true. Prove it. At least I used real figures and was very conservative. All you investment guru's should well out perform 7%.
Denny
And we aren't talking about 25% because we don't have 25%. I'm not even counting on anything remotely close to that.
12-23-2019, 04:46 AM
#62
Gets Weekends Off
Joined APC: Nov 2017
Posts: 350
Bingo. Don’t forget to also factor in the fact that housing prices have risen exponentially in many of our western base cities making many of those DZers who have owned a home, a fortune. Also add the exponential rise in college tuition, the massive gains in the equity markets the past 30 years (expected to be much less going forward), and increased tax rates in the future and inflation turns that $5M into a number much less.
12-23-2019, 05:06 AM
#63
Gets Weekends Off
Joined APC: Jul 2010
Posts: 3,379
Bingo. Don’t forget to also factor in the fact that housing prices have risen exponentially in many of our western base cities making many of those DZers who have owned a home, a fortune. Also add the exponential rise in college tuition, the massive gains in the equity markets the past 30 years (expected to be much less going forward), and increased tax rates in the future and inflation turns that $5M into a number much less.
12-23-2019, 05:54 AM
#64
Gets Weekends Off
Joined APC: Apr 2016
Position: Looking left
Posts: 3,390
Using an inflaction calculator and using the last 30 years, $4M right now has same buying power as $2M 30 years ago. So depending on how your brain looks at things, you either need to double your money to have the same buying power, or your current money is only worth 1/2 in future dollar power.
So if we project forward 30 years, $5M right now in retirement only has $2.5M of buying power in 2049 dollars.
12-23-2019, 06:20 AM
#66
Gets Weekends Off
Joined APC: Feb 2014
Posts: 209
Any windfall to retirees will incentivize retirement and increase attrition. The larger the windfall (earlier they retire and less they contribute themselves) will further incentivize earlier retirement. There is NO WAY the company will agree to anything that encourages people to retire early given this market.
12-23-2019, 06:35 AM
#67
Gets Weekends Off
Joined APC: Sep 2014
Posts: 4,999
To be fair, the mil PS itself doesn't cost the company a dime. That money comes from a defined pot and payouts to mloa pilots just dilutes non-mloa pilots' profit sharing. What MLOA PS does cost the company is 16% DC on those distributions.
12-23-2019, 07:06 AM
#68
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Joined APC: Dec 2009
Position: Capt
Posts: 2,049
12-23-2019, 07:07 AM
#69
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Joined APC: Dec 2009
Position: Capt
Posts: 2,049
Any windfall to retirees will incentivize retirement and increase attrition. The larger the windfall (earlier they retire and less they contribute themselves) will further incentivize earlier retirement. There is NO WAY the company will agree to anything that encourages people to retire early given this market.
12-23-2019, 07:07 AM
#70
Gets Weekends Off
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,971
That isn't a low-ball, that's actually a gross over-estimate. The max the company can contribute to your 401k right now is $44,800 per year. In order to max out to the IRS limit, we would need a 20% DC. And we all would also need to be making $280,000 per year. You can't use 50k a year at all as an estimate because it's going to take AT LEAST 10-15 years (assuming you can upgrade to CA in a large NB) to hit that salary that'll get you just $44,800. And since you're a big TVM guy, you know that for every year you don't max out your company contributions there is a snowballing effect on your retirement.
And we aren't talking about 25% because we don't have 25%. I'm not even counting on anything remotely close to that.
And we aren't talking about 25% because we don't have 25%. I'm not even counting on anything remotely close to that.
If the NN made it thru as is a $200,000 year will yield $50k going into going into ones DC. I’m betting there are many, many FO’s that have been making this and much more.
Denny
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