Originally Posted by
pinseeker
You would have to average $290k per year at a 7% market return for a 25 year career for a 17% B fund to equal our current plans. That doesn't even consider any tax implications for cash over cap.
How many years do you have to work until you make $290K? Would you ever be able to catch up for the years you weren't even close to $290K
Well, maybe if we get PBS and the company schedules all of us for min days off, you could get there faster. That's an incentive.:roll eyes:
So, if you are 30 and just hired, what choice would you make? Take the 17% or gamble that your 130k (less survivor benefit if you go that route) will be there in 30-35 years? Again, it'd only consider cash over cap. I think 290k is a very low figure. Not sure if 290k is an accurate estimate, but even getting 3% raises, I'd say $290k average for a new hire is beyond attainable.
I'm not in favor of giving a damn thing up. But, in our very noble attempt to not screw over new hires, we may have done just that. I've asked several new hires what they'd rather have, and they all said a higher B fund. That's no scientific study, as I'm sure a great many would prefer the A fund. Don't get me wrong, I totally agreed that we keep them on the plan. That assumed that we'd get a significant A fund bump though. If I were a 30 year old new hire, I'd take the larger B fund. If I was a 50 year old new hire, I'd probably want the A fund. That's just me, I'm sure others in the exact same situation would choose the opposite. Many of us have lost a pension already, so we are a little gun shy.
30 years is a lot of time in a business cycle. We all know of hundreds of businesses that seemed strong at one time but failed later. Fedex isn't immune to bankruptcy or failure.