Obviously I can't make that judgement now but it's high on my dislikes. Would you single issue no vote if retirement DC is increased but no other provisions for tax savings or plus up were part of the deal? Not really a fair question, is it?

I don't know, but I wish I could get a good Notepad about the tax benefits from the union. I suspect that we won't - all we'll see is "Consult a tax professional for more information".

That's all that can be asked, to keep an open mind. As you, I want to see the whole enchilada before I vote on anything. In that sense it's a fair question to see where one stands.

If you, or anyone for that matter, ever layover in Seattle please PM if you want to meet for a beer or whatever. If I'm home I'm I would be more than happy to do so! :)

Denny

You do realize that it’s a “targeted” 5% return, not guaranteed, right? If the market tanks then your MBCBP tanks too. There’s nothing fancy about the investments in the MBCBP. It’s a container for tax deferred money that is nominally yours and someone else controls.

ummmmmm.........what?!??? You can’t be serious. I thought this was somewhat of a serious discussion.

I rarely get to SEA but I appreciate the offer. While we disagree on this issue I think we have common ground on the majority of the contract and its need to be a big win for the pilots to end the bankruptcy hangover. I'd like to reciprocate the offer but you have to be willing to drink your beer in a shanty (and no I didn't mean shandy) MSP has a bar every 20 feet this time of year.

https://www.exploreminnesota.com/sit.../11302/800x532

Based on what we know, if you are more than 10 years away from retirement, unless you expect your marginal tax rate to be significantly lower (like 12% vs 22%). You are better off taking your money and putting in in a brokerage account. The union hasn’t proposed anything that has benefits that outweigh the expenses.

That's not correct. If the plan is set up with a 5% return, it pays 5%. If the actual market return is higher, the excess earning go into a reserve fund. The next time the market return is less than 5%, the reserve fund is used to fill out the 5%. If there's a string of bad luck and the reserve fund runs out, the company is required to use operating cash to fill it out. Since this process happens every year, the program is always fully funded.

Like I said, closer to an insurance product or annuity. Ask any independent CFP (who doesn't work for a firm selling their own products) what they think of annuities for someone with a large capital balance or a time horizon of 10+ years.

I should have been more specific. We are saying the same thing.

He is holding the MBCBP out as this vehicle which gets a guaranteed 5%. It’s not that at all. They target 5% as a growth rate. And in order to get that they will either withhold growth above 5% to use in the future, or take credit for that previous growth in terms of average rate.

If the market tanks, having your money in the MBCBP gains you nothing.