UAL B Fund
#31
Gets Weekends Off
Joined APC: Nov 2009
Posts: 5,192
At what point is this excessive?
Say I'm 35 right now. UAL is going to put enough away (assuming 16% and no changes to pay, tax rules, etc) enough for well over 5 million bucks.
I figure I will invest elsewhere with money I can use before retiring (real estate, college savings for kids, etc) while making the minimum contributions to the UAL fund required to max out tax advantages... But 10 million in the 401k just seems like putting too much where I won't be able to use it.
Say I'm 35 right now. UAL is going to put enough away (assuming 16% and no changes to pay, tax rules, etc) enough for well over 5 million bucks.
I figure I will invest elsewhere with money I can use before retiring (real estate, college savings for kids, etc) while making the minimum contributions to the UAL fund required to max out tax advantages... But 10 million in the 401k just seems like putting too much where I won't be able to use it.
#32
The cash won't always be coming in like this, and your plan completely negates the advantages of saving early/often... Compound interest. You can't get back time, and you can't get that compound interest longevity back. Everything else you listed is not investing, those are liabilities and expenses.
I would rather live like a millionaire in retirement and take month long expensive vacations and play golf at a club because i saved to much money than live month to month hoping I don't out live my money.
Save all you can now while the money is rolling in, its the best thing you can do for your families future.
#33
I want something of what you're smoking. I don't come up anywhere near 5 million bucks on a 16% B-fund I contribute to between 35 and 60 (I'm not working full time past 60). This is the type of stuff those mythical excel spreadsheets are based out of. Everybody makes 8% net yield YTY for 40 years, nobody gets furloughed, nobody gets bumped of out CA pay, nobody medicals out a day before 67 (by then). GMAB.
Accounting for loss of income, displacements and early medical out, you'd be wise to assume 5% net yields and amortize your contributions based on NB FO rate deferrals for the first 15 and then WB CA for the last 10. When you do that, you're much closer to a 1.5MM balance. 2.3MM with that polyanna 8% return for 25 years.
Assumptions are a tricky thing, especially if that SAH trophy wife is with ya based on the projected outcome of these common core math, Enron "mark to market" retirement income calculations. Caveat emptor fellas.
Accounting for loss of income, displacements and early medical out, you'd be wise to assume 5% net yields and amortize your contributions based on NB FO rate deferrals for the first 15 and then WB CA for the last 10. When you do that, you're much closer to a 1.5MM balance. 2.3MM with that polyanna 8% return for 25 years.
Assumptions are a tricky thing, especially if that SAH trophy wife is with ya based on the projected outcome of these common core math, Enron "mark to market" retirement income calculations. Caveat emptor fellas.
#35
UCH Pilot
Joined APC: Oct 2014
Position: 787
Posts: 776
#36
I want something of what you're smoking. I don't come up anywhere near 5 million bucks on a 16% B-fund I contribute to between 35 and 60 (I'm not working full time past 60). This is the type of stuff those mythical excel spreadsheets are based out of. Everybody makes 8% net yield YTY for 40 years, nobody gets furloughed, nobody gets bumped of out CA pay, nobody medicals out a day before 67 (by then). GMAB.
Accounting for loss of income, displacements and early medical out, you'd be wise to assume 5% net yields and amortize your contributions based on NB FO rate deferrals for the first 15 and then WB CA for the last 10. When you do that, you're much closer to a 1.5MM balance. 2.3MM with that polyanna 8% return for 25 years.
Assumptions are a tricky thing, especially if that SAH trophy wife is with ya based on the projected outcome of these common core math, Enron "mark to market" retirement income calculations. Caveat emptor fellas.
Accounting for loss of income, displacements and early medical out, you'd be wise to assume 5% net yields and amortize your contributions based on NB FO rate deferrals for the first 15 and then WB CA for the last 10. When you do that, you're much closer to a 1.5MM balance. 2.3MM with that polyanna 8% return for 25 years.
Assumptions are a tricky thing, especially if that SAH trophy wife is with ya based on the projected outcome of these common core math, Enron "mark to market" retirement income calculations. Caveat emptor fellas.
#37
Gets Weekends Off
Joined APC: Jul 2015
Posts: 859
I re-ran my number assuming 53k from 31-65 and it gave me a range of 3-6M at that date. (monte carlo)
Interesting calc. https://research.scottrade.com/knowl...ors/Retirement
One problem I have is that 401k calculators don't let you place more than 18k in the box...
EDIT: Also I put an extra 10% in the roth 401-k...
#38
Gets Weekends Off
Joined APC: Jul 2010
Posts: 153
Common core has been around less than 5 years so that would make me a newhire with 50+ years to go! (Talk about seniority!)
I re-ran my number assuming 53k from 31-65 and it gave me a range of 3-6M at that date. (monte carlo)
Interesting calc. https://research.scottrade.com/knowl...ors/Retirement
One problem I have is that 401k calculators don't let you place more than 18k in the box...
EDIT: Also I put an extra 10% in the roth 401-k...
I re-ran my number assuming 53k from 31-65 and it gave me a range of 3-6M at that date. (monte carlo)
Interesting calc. https://research.scottrade.com/knowl...ors/Retirement
One problem I have is that 401k calculators don't let you place more than 18k in the box...
EDIT: Also I put an extra 10% in the roth 401-k...
#39
Don't say Guppy
Joined APC: Dec 2010
Position: Guppy driver
Posts: 1,926
In the last 21 years, lUAL pilots made "industry standard" wages for, wait for it............5 years. The rest of the time, we were 30-40% below the leaders in the industry.
A couple of thousand United pilots ended up working else where for most of the last 17 years.
Put it in the bank, and invest it while you can. Don't count on current economic conditions, and industry profitability, lasting forever.
A couple of thousand United pilots ended up working else where for most of the last 17 years.
Put it in the bank, and invest it while you can. Don't count on current economic conditions, and industry profitability, lasting forever.
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