Originally Posted by
threeighteen
I believe that you shouldn't need to *consistently* withdraw from 401(k) principle. Again, it's a savings plan, not a retirement plan.
1. By the time you retire, most of your 401(k) should be in low-risk financial instruments like bonds, averaging around 4%, not 7%. This would require about $3.5 million in 401k savings.
2. How many years of working for UAL would it take to get $3.5 million in your 401(k)? This depends on the market. If the market goes negative for a
Good grief, no, it shouldn't. Day of death isn't known unless you have a plan to kill yourself on a specific day. Plus even if done properly, this leaves absolutely no wealth for your legacy. Genius advice like yours is the reason why taking financial advice from pilots is never a great idea.
Actually not necessarily true. With some plans, depending on how you elect to receive it, there are options to take a reduced amount that will continue to go to your spouse when you die.
Happy to see a discussion on retirement. Maybe this horrific TA woke a few pilots up from their 20 year coma. A 401k is NOT a retirement plan. It's a tax differed savings plan with contribution limits. If it's sooo wonderful why are all the politicians hanging onto their pensions?.State and federal. Pilots bought that BS without even questioning it and ALPA sold it. We should have both a 401k and a pension in order to retire in the way any financial planner will tell you to do it.