Vacancy 17-09V
06-17-2017, 01:12 PM
#232
Gets Weekends Off
Joined APC: Nov 2009
Posts: 5,244
06-17-2017, 03:13 PM
#233
Gets Weekends Off
Thread Starter
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
18k (max contribution should keep increasing but we can assume 18k...) per year for 20 years at 7% will get you somewhere around $800,000 at military retirement. Assume that money sits untouched for the next 20 years until "real" retirement, and it'll be over 2.8 million bucks. Thats at just 7% and assumes zero retirement investing between military and "real" retirement. Continue the 18k investment for a full 40 years and even at just 7% it'll be over 3.5 mil.
An O1 under 2 grosses $3034.80/month. I suppose if he lives on ramen and has a bicycle for transportation, he could bank $1500/mo but it would be a miserable existence.
Still, you're talking tomorrow's dollars and are ignoring the effect of 20 years' worth of inflation.
Instead of using $18K/yr, how about someone use the 2017 match of 5% plus 5% individual contribution. Then compare that to a 20% reduction in retirement pay. I haven't worked the numbers but I'm sure they're out there somewhere.
06-17-2017, 04:21 PM
#234
Gets Weekends Off
Joined APC: Jan 2011
Position: A Nobody
Posts: 1,559
All your assumptions sound so easy and good, except you left out one, life.
And as an airline pilot you also forgot to mention the cost of the divorce or two you earned while chasing the F/A or your "girlfriend" in Asia (or any other foreign port you may visit).
And as an airline pilot you also forgot to mention the cost of the divorce or two you earned while chasing the F/A or your "girlfriend" in Asia (or any other foreign port you may visit).
06-17-2017, 06:37 PM
#235
Don't say Guppy
Joined APC: Dec 2010
Position: Guppy driver
Posts: 1,926
"When I was younger, I spent my money on good whiskey, fast cars, and fast women. The rest, I spent foolishly."
06-19-2017, 05:45 AM
#236
Gets Weekends Off
Joined APC: Sep 2014
Position: Airbus 320 Captain
Posts: 481
Others have already pointed a major flaw in your calculations - the ability to save $1500/mo as an O1-O3, but let's run with the $1500/mo earning 7%. That comes out to ~$761K after 20 years; you opted to aggressively round it up to $800K.
An O1 under 2 grosses $3034.80/month. I suppose if he lives on ramen and has a bicycle for transportation, he could bank $1500/mo but it would be a miserable existence.
Still, you're talking tomorrow's dollars and are ignoring the effect of 20 years' worth of inflation.
Instead of using $18K/yr, how about someone use the 2017 match of 5% plus 5% individual contribution. Then compare that to a 20% reduction in retirement pay. I haven't worked the numbers but I'm sure they're out there somewhere.
An O1 under 2 grosses $3034.80/month. I suppose if he lives on ramen and has a bicycle for transportation, he could bank $1500/mo but it would be a miserable existence.
Still, you're talking tomorrow's dollars and are ignoring the effect of 20 years' worth of inflation.
Instead of using $18K/yr, how about someone use the 2017 match of 5% plus 5% individual contribution. Then compare that to a 20% reduction in retirement pay. I haven't worked the numbers but I'm sure they're out there somewhere.
Last edited by rp2pilot; 06-19-2017 at 05:46 AM. Reason: Typo
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