How big is your DPSP?
#21
THAT is an awesome strategy! The sooner you can get the balance above roughly $750,000 , the sooner your 401k will grow "organically" more each year than the $54,000 you and Delta can max it out with.
.
#22
You're assuming 7.5% growth on $750k as the tipping point where your growth outpaces your annual contributions?
#24
Gets Weekends Off
Joined APC: Aug 2015
Position: Captain
Posts: 1,561
Personal question, I know. But this being an anonymous forum, I thought I'd give it a shot. Just trying to get a gauge for whether or not I'm on track with my savings compared to what other Delta pilots are doing. If you care to share, please post your approximate balance and how many years you've been employed.
P.S. Not interested in the stolen retirement debates that I expect from some of you
P.S. Not interested in the stolen retirement debates that I expect from some of you
Are you out of your mind?
What kind of question is that
#25
Well, I said "roughly" but yes. I made a quick spreadsheet with simple growth and a constant $54K per year contribution for simplicity.
At 7% appreciation, the organic growth outpaces the $54K contribution in year 11.
At 10% appreciation, the organic growth outpaces the $54K contribution in year 8.
The important part is to get above that threshold so the 401K works harder than you do.
.
#27
Gets Weekends Off
Joined APC: Sep 2014
Posts: 4,909
Only on the innerweb do you find people flipping out about an anonymous poster asking anonymous and voluntary questions about a topic that is challenging to discuss without anonymity. Snowflakes comes in all shapes and sizes.
1.2M early 40s, hoping to be done at 60 if TRICARE is still a thing.
1.2M early 40s, hoping to be done at 60 if TRICARE is still a thing.
#28
Gets Weekends Off
Joined APC: Jun 2015
Posts: 4,116
Well....not all of us here are so annonymous.
I just hope new pilots appreciate the substantial and fortunate position now realized in our pwa retirement section.
30yrs ago a new pilot had a completly suspect pension.
And a 6% self directed limit imposed by erisa because of that suspect pension.
Along with poverty level wages if one had a family....6% of not much was, well...depressing. With salt in the wound being the phoney baloney esop stock company match which evaporated in bankruptcy.
It took over 10 years to reach the $100k level in my self directed account.
As a new pilot take the time to chart a best-middle-worst case. Personally and financially. Take the 16% and invest it. Add to it as your created plans allow. But dont obsess over it.
Take the time to enjoy your paycheck. And time off. If you even come close to the 401k limits each year of a 20 or 30yr career....you will have more than enough money in retirement.
Im ending up closer to my worst case than best....given the hand dealt 30yrs ago i set a retirement goal of 'thirds'. 1/3 annuitized. 1/3 real asset income, and 1/3 savings income.
Even with divorce in my 40s....i have managed to muddle my way to a composite retirement income stream that will worst case place me in the 5%er realm...
Enjoy your career. Enjoy your family and time off. Enjoy the paycheck. You fortunately now have a pwa retirement benefit that will make sure you wont have the rug pulled out from under you at retirement.
I just hope new pilots appreciate the substantial and fortunate position now realized in our pwa retirement section.
30yrs ago a new pilot had a completly suspect pension.
And a 6% self directed limit imposed by erisa because of that suspect pension.
Along with poverty level wages if one had a family....6% of not much was, well...depressing. With salt in the wound being the phoney baloney esop stock company match which evaporated in bankruptcy.
It took over 10 years to reach the $100k level in my self directed account.
As a new pilot take the time to chart a best-middle-worst case. Personally and financially. Take the 16% and invest it. Add to it as your created plans allow. But dont obsess over it.
Take the time to enjoy your paycheck. And time off. If you even come close to the 401k limits each year of a 20 or 30yr career....you will have more than enough money in retirement.
Im ending up closer to my worst case than best....given the hand dealt 30yrs ago i set a retirement goal of 'thirds'. 1/3 annuitized. 1/3 real asset income, and 1/3 savings income.
Even with divorce in my 40s....i have managed to muddle my way to a composite retirement income stream that will worst case place me in the 5%er realm...
Enjoy your career. Enjoy your family and time off. Enjoy the paycheck. You fortunately now have a pwa retirement benefit that will make sure you wont have the rug pulled out from under you at retirement.
#30
If only the limit were higher. Way better than a 401k for the reasons you just cited.
Thread
Thread Starter
Forum
Replies
Last Post