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Old 05-14-2019, 04:09 PM
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GoneSailing
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Joined APC: May 2019
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Originally Posted by iaflyer View Post
Well, ok. But why?

On the surface, it seems like another way to put money away and escape pay the tax now. Also, that webpage says "Like all qualified retirement plans, assets are protected from creditors." so it sounds like it's protected.
The concept was developed to assist older business owners who need to accelerate their savings as they probably spent their earlier years reinvesting into their business instead of saving for retirement.

The investment strategies for a small partnership, for example, would be relatively straight forward. Not so when the investment strategy should be fitting for a 25-year-old with 40 years to retirement as someone in their 60s with only a couple of years to go. Let alone, find a one size fits all model for 14,500+.

There has to be a plan administrator. Do you trust our employer or ALPA to make portfolio management decisions for you? I don't. Besides, the fees for this type of investment management are fairly high.

With this type of plan you may be "guaranteed" a certain return. Do you know where any excess goes? To the plan administrator. If the plan doesn't produce the required return, the plan administrator will have to fund the difference. With the history of the airline business, do you trust that Delta will be able (and willing) to fund your retirement account in 20 years from now?
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