where in the hell are you getting this 150K figure??? Anyone who pays that much is stupid enough that they would probably be in poverty anyways, regardless of what they're doing.
Try 35-40K. Now, with a realistic figure like that, how many houses that cost 35-40K are you going to buy? Trailers don't appreciate in value very well last time I checked.Maybe a timeshare in Panama City?
You're also assuming that someone is going to keep paying that loan down over 20 years. If someone gets on with a major, do you think they're going to continue paying interest + principal payments on that flight training loan for 15 years more? Doubt it. If I'm making 60-90K/yr as an FO at a major, you bet your arse I'm paying that entire loan balance off in 12 months. So there goes your comparison to investing that money.
Anyways, your 1.6 million figure doesn't mean crap if you didn't a) have flight training or b) have a college degree that would allow you to get a job and pay for food and utilities for that 35 years. How many banks out there will loan 150K to a high school graduate, even for a home? You're comparison assumes the individual can make ends meet for 35 years to see that money, without having to withdraw anything to pay bills.
Originally Posted by
SkyHigh
The money must come from someplace. Lets assume it is from a student loan. I am not fully briefed upon the particulars but lets figure %8.9 over 20 years.
The student loan payments would be $1340/mo.
At $6.0 per hour a person could earn 11,520 in a year.
As a CFI a good average is 15K per year minus $16080 per year for debt service is a negative 1080 before you have even subtraced for taxes and living expenses. The loss continues until the hire date at a regional and then for more years until upgrade. Even then you would have to live in poverty for more than a decade to catch up with all the losses.
Buy a house instead.
SkyHigh
I have to go and make breakfast for four sons now.
Later when I have more time I will write a longer post detailing how you will loose money over simply buying a house or investing the money VS a typical airline career.