MBCBP implementation announced…
05-26-2023, 04:13 PM
#132
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,614
Because most people don't understand basic financial let alone investing. Financial Literacy needs to be implemented in high schools. Moreover, most people are emotional rather than analytical towards investing, led to believe by Wall Street that investing is difficult and best left to the professionals, for a hefty fee while still under performing indexes.
Widespread financial literacy is a double edged sword. It makes outsized returns more difficult if everyone knows what to do. You are absolutely right about the emotional quotient, even among wealthy people. I'm amazed how dumb rich people get with a minor investment setback.
05-26-2023, 04:43 PM
#133
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,597
Beating the market with 100K is child's play. Beating the market with a million is easy. Beating it with $10 million actually takes some work. $100 million limits your options for niche investments that outperform. At a billion you are even more limited. When you are talking about $10+ billion Wall Street funds, you are the market. It is nearly impossible at those levels. My best % returns were when I was working with six figures.
Widespread financial literacy is a double edged sword. It makes outsized returns more difficult if everyone knows what to do. You are absolutely right about the emotional quotient, even among wealthy people. I'm amazed how dumb rich people get with a minor investment setback.
Widespread financial literacy is a double edged sword. It makes outsized returns more difficult if everyone knows what to do. You are absolutely right about the emotional quotient, even among wealthy people. I'm amazed how dumb rich people get with a minor investment setback.
05-26-2023, 05:02 PM
#134
Gets Weekends Off
Joined APC: Feb 2020
Posts: 793
I’m opting out. Why don’t we just change the ALPA by-laws to stop taking dues out the retirement money. Didn’t it used to be that way? Isn’t Ambrosi national presidenf? This seems like a lot of work to avoid dues. I want my money. I don’t trust anything not in my name.
A5S
05-26-2023, 05:34 PM
#135
Gets Weekends Off
Joined APC: Sep 2011
Position: Hates Commuting
Posts: 957
Well.... "Triggers"? That's a strange way of looking at it, IMO--sort of a reverse cause & effect. $330K doesn't "trigger" the DC excess; reaching the contribution limit (which is $330K for 2023) means the company cannot put any more into your 401(k), and the PWA provides for it to come to you as taxable income (i.e., DC excess).
05-26-2023, 06:24 PM
#136
Gets Weekends Off
Joined APC: Oct 2017
Posts: 395
05-26-2023, 06:35 PM
#137
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,614
Well.... "Triggers"? That's a strange way of looking at it, IMO--sort of a reverse cause & effect. $330K doesn't "trigger" the DC excess; reaching the contribution limit (which is $330K for 2023) means the company cannot put any more into your 401(k), and the PWA provides for it to come to you as taxable income (i.e., DC excess).
05-26-2023, 08:25 PM
#139
Gets Weekends Off
Joined APC: Mar 2012
Position: 320B
Posts: 454
Is it just me or is the MBCBP a huge fail? After all this effort negotiating this plan and from the sounds of it most pilots are going to be opting out.
The concept of the plan itself seems great, the only issue is the actual investment choice. Is this something the union can change?
Can ALPA pivot quickly and adjust the equity/bond ratio? It seems like this is the main drawback….nobody wants 60% bonds. Why didn’t the union negotiate a more aggressive equity holding?
The concept of the plan itself seems great, the only issue is the actual investment choice. Is this something the union can change?
Can ALPA pivot quickly and adjust the equity/bond ratio? It seems like this is the main drawback….nobody wants 60% bonds. Why didn’t the union negotiate a more aggressive equity holding?
05-27-2023, 01:18 AM
#140
Line Holder
Joined APC: Mar 2015
Posts: 73
Is it just me or is the MBCBP a huge fail? After all this effort negotiating this plan and from the sounds of it most pilots are going to be opting out.
The concept of the plan itself seems great, the only issue is the actual investment choice. Is this something the union can change?
Can ALPA pivot quickly and adjust the equity/bond ratio? It seems like this is the main drawback….nobody wants 60% bonds. Why didn’t the union negotiate a more aggressive equity holding?
The concept of the plan itself seems great, the only issue is the actual investment choice. Is this something the union can change?
Can ALPA pivot quickly and adjust the equity/bond ratio? It seems like this is the main drawback….nobody wants 60% bonds. Why didn’t the union negotiate a more aggressive equity holding?
my guess, and I know nothing, is that it’s because the company guarantees a balance. (Also surprised no one is talking about this)
- If market fluctuations have caused a pilot’s MBCBP balance to be less than the sum total of all contributions made by the Company to their account, the Company must “plus up” the pilot’s balance at retirement to be no less than that total.
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