Originally Posted by
Timbo
Well, I would have had a lot more fun spending it on booze and hookers, no doubt!
Putting 4 kids through college after a 42% pay cut did a number on my Note/claim money, and being out on LTD (at 50%) for 9mo. from that little bug I picked up in Kuwait City sure didn't help my cash flow or DC plan contributions.
I wonder if some numbers guru could figure out how much money you'd need to have saved up and invested, and at what rate of return, to net you what the 60% of FAE did, on a per year basis.
I'm guessing investing 15%/yr. of our bankruptcy pay today isn't going to come close to what we expected when we were hired with a 60% FAE DB plan.
Certainly everybody's situation is different, but with 18 years left to 65, and 12 to my target of 59 and a half, I like where I "should" be compared to the old DB plan.
There is no "one" strategy that is bullet proof just as the DB plan was not without risk, but taking a very long look at the market and the effects of compounding are truly amazing.
Think compound interest. Think what you pay in interest on a 30 year note with a DECREASING principal. Now think what 4 to 5 percent does on 250k over 20 years with an increasing principal.
For what it is worth, it is a very, very easy read.....and don't let the name fool you, it is not a get rich quick book. Hopefully I am not violating TOS...
DRIP (Dividend Reinvestment Plan) Calculator
Get Rich with Dividends: A Proven System for Earning Double-Digit Returns: Marc Lichtenfeld: 9781118217818: Amazon.com: Books