Originally Posted by fosters
I agree, having less of a paycheck (but enough to live off of) is better than maxing out like in your example over time.
In reality, you don't make your money by earning more, you make (and save) by spending less than you make. It just means one must live below their means or do things to bring in additional income. As an example, as a first year FO I have managed to sock away $5800 (pre and post tax) in the last 10 months towards retirement alone.
In regards to the income taxes, someone going from $125k to $250k in earnings would pay approximately 5% more tax on about $70,000 in income jumping into the next tax bracket, hardly "crippling" IMO. I personally would rather pay the additional tax and make $250k vs. $125k but that is just me. Federal income taxes are capped at 35%, and one could argue that 35% isn't "most" of our earnings.
Yes Fosters, I agree with your assessment. My next question is: Is it better to earn 50K starting at 20 years old and slowly raise at 5% per year over the next 40 to 45 years or to pursue a typical civilian flying career?
Example: 5 years in college then 3 years as a CFI to be followed by 5 years as an FO at a regional before reaching 50K. 80 to 180 thousand in education and training costs. Eventually reaching 100 thousand at the 20 year mark? Versus no college, trade school as a truck driver, heavy equipment driver or welder. 6 months in school and 10 to 20 thousand in training costs.
SkyHigh