Originally Posted by
Denny Crane
What a lot of younger pilots are bringing up is 5% return on a MBCBP and it is a valid concern. What they aren't adding in is the saving on the tax deferral nature of the Plan. I would submit that this savings should be included on top of that 5%. I have no idea what that amount would be.
Denny
What several of us have tried to stress is that savings is small enough that it is not remotely worth the 5% target return that is outside of your control. The only real savings is if your withdrawals are taxed in a lower income bracket.
It is tax deferral not tax avoidance. An investor's focus should always be on total return. A lot of investors have lost significant wealth focusing on tax deferral vs capital appreciation/total return. IMO the MBCBP is an inefficient use of Capital.
Sent from my SM-G975U1 using Tapatalk