Originally Posted by
bugman61
Your premise of “we need something additional” is false. Just because we max out our 401k, doesn’t mean you need some other tax vehicle. Whole life insurance is another vehicle but most people don’t use it because it’s a terribly inefficient way of saving your money. The MBCBP is better than whole life but still has a lot of inherent drawbacks and inefficiencies. Putting money in it just because you want some other place is foolish. ALPA still has yet to put out a correct, objective analysis of the MBCBP vs after tax investments. I wonder why?
Whole life or annuities are very, very expensive. Why do you think insurance guys love selling them? That nice house or big boat your insurance guy came from selling these products.
It seems that Delta gets tax breaks from this MBCBP. They do not for an increase to DC. Right? I think Alpa is working inside of tight parameters to find something that we can get the max benefit for with Delta’s agreement inside our contract that can increase our bottom line in other places not so obvious. More like a hidden raise.
Thats how how I see it. We are not going to get the equivalent in pay raises and the more tax sheltered income we get at this level, the better.