Originally Posted by
notEnuf
6 - 15 is quite a margin for error. I have 1 - 9 kids. True statement. Why are you flying for Delta?
We are talking about the PWA not your hobby. Our retirement funds provided by Delta which are intended to be tax free (or prepaid with growth not taxed) are losing earnings potential due to taxation.
I want another vehicle to shelter those funds because the current one has become inadequate. If you are the next Elon Musk or Steven Winn great but those of us (the majority by far) that aren't want more efficiency in building our nest egg. Take all of your earnings and invest in anything you like but the retirement funds from the PWA are for retirement investing within the retirement plan(s) provided by the PWA. We have no argument for additional DC contributions without a place to put it. If you don't want to be a typical pilot, fine. Those of us that are want efficient and reliable savings growth that aren't taxed until we choose. Perhaps you need to write a letter to your representatives to start polling on a venture capital allocation as part of our PWA. I can see it now section 275.203 of the PWA. Just set up a self directed IRA and let us have our 30% savings and additional capital growth. Are you overfunding just to get the roth benefit? If so how much of your income are trying to roth?
Trip, myself and others have laid out multiple options to shelter funds while outperforming the 5% return. The only argument against MBCBP is the potential mandatory aspect of the plan.
Owning LP interests in cash flowing businesses, rental real estate and dividend stocks will pave the way to financial security. The biggest financial risk you face in retirement is loss of purchasing power due to inflation. Earning a fixed rate of return that barely outpaces inflation over the long term is a recipe for disaster. Trip is not bragging about what he has, he is showing you the path to financial security. Retreating to the "safety" of a tax deferred 5% return won't make a significant difference. In less time that we spend on CQ each year, pilots can learn how to properly manage finances and own assets that produce cash flow. Retiring with a stream of cash flow is much safer than retiring with a pile of cash and guessing when it will run out.