Originally Posted by
StarClipper
Absolutely BS, 30yrs from now, 130k we still be 130k. The buying power will be determined by the economy, this is no reason to give up what you already have for some unknown with greater risk. Stop poisoning this new hires brain
Are you really a new hire? If you are young and give Fedex at least 25 years, you will top out at 50% of your final average earning. Assuming no change in the cap and assuming you are fairly young. Chew on this:
Our last known rate of pay for WB CAPT on Nov 2020, 15 years service is $335.56. Use what ever multiplier you like to guesstimate yearly pensionable earnings. Based on historical averages, we (I mean you, I'll be gone) can expect 3% pay increases if inflation doesn't change from current trends. By my figuring, the hourly rate for Fedex should be about $700 per hour in 2045, your yearly pay least $700,000 per year. Your A plan payout the year after you retire, $130,000 (18.6% of your previous years pay). Your income in 2070, possibly age 90, A plan, $130,000. Fifty two years from now, with steady 3% inflation, all money, in constant dollars, will be worth 78.5% less. To put it another way, $130,000 in 2070 will be worth the equivalent of $27,951 today. On the hypothetical day of your retirement in 2045, 55% less with 130K equivalent to $58,525 today. All this assumes 3% inflation, worse inflation, bad to really ugly.
I hope your B fund does as well as mine has in recent years. PRIMECAP has had double digit gains. I hope the good times roll. We will all need it, especially you guys.