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View Full Version : Retirement? How?


thestaton
03-05-2007, 06:14 PM
I recently said I was forgoing my desire to be a pilot, but the itch is always there. I got to thinking today, and the traditional retirement is probably gone unless one gets a government, military, or rare job. By traditional I mean, you work for x number of years and you get half your salary...

How does a person who work for the airlines there whole life get to retirement?

If you work 4 years for a regional..

6 years at a major...

Then you move over to UPS. For 15 years.

Each time you are starting, over. Thus not building time with a company.

So besides a 401K what option do airline pilots have?


vagabond
03-05-2007, 06:49 PM
Both pilots and non-pilots ponder this question. Hopeless as it may seem, there are vehicles out there to help in your old age.

Individual Retirement Accounts (IRA)
Annuities
Mutual Funds
Bonds
Savings Bonds
Real Estate
Gold/Precious Gems
Social Security

If you are still young, the scenario you described moving from regional to major to UPS is not unreasonable and gives you 15 years with relatively good pay. The key is to start saving early and use time as your ally.

higney85
03-14-2007, 01:22 PM
compounding interest will be your best friend... Start now by putting the max you can in an IRA, and you can use payroll deduction at your current job to put money into a brokerage account/money market account. Use the 401(K) if you can- make sure you get all you can out of company matching! Depending on how old you are you would be absolutely amazed at what compounding interest can do for you. For starting out you can look into putting brokerage account money into ETF's (exchange traded funds)- a basket of stocks, or mutual funds. Many can use automatic investing- money automatically goes in every month. If you start young (early 20's) by only putting away $350 a month you will have over $2M by the time you are 65- and that doesnt even count a 401(k) or putting more away when you make more money further in your career. Most employers will let you put money into multiple accounts- use it! that way you just focus on living out of the checking account, if you dont see the money you are less likely to spend it. Thats just my plan though.. to each there own...


LAfrequentflyer
03-14-2007, 01:56 PM
Live well below your means...Pay your self first - pay yourself well....Then pay for any indulgence by putting an equal amount into savings / investments.

I add up all my movies / starbucks / yada yada yada at the end of the month and transfer the same amount into savings.

I also keep no more than 250$ in my checking account. If I have more I transfer it to savings / investments.

Its essential you pay off any debt (consumer / education) ASAP. Then build a savings nest egg >= 6-8 months of take home pay. Once you have this foundation start throwing money into investements...

Get rid of cable tv, internet, buying books (use the library)....Instead of sitting around the house start doing things like biking / running at the park. Play chess at the park or at Starbucks and meet people.

Clip coupons and make shopping a game. I try to leave the grocery story without paying. The closest I've come is a 67$ bill reduced to 7$ by using coupons and bargain shopping. Ask the manager when certain items will be at 'bargain bottom' price and return then to buy them.

Learn to cook at home. Its cheaper and healthy for you.

-LAFF