# MBCBP comparison tool

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**1**Gets Weekends Off

Thread Starter

Joined APC: Jun 2019

Position: Currently freeloading

Posts: 528

**MBCBP comparison tool**

Obviously, there has been a lot of hullabaloo going on around here with regards to the MBCBP and just what exactly it means for your retirement. Specifically, which was better...saving on taxes now and getting a lower return, or taking the hit on taxes and getting a potentially better return over the long run. Well, I wanted to see what the actual numbers were, so I put together a spreadsheet to compare them.

I am making no guarantees on the accuracy of the calculations, and I am certainly not going to say this will apply to your own specific situation. However, I

I will make updates to the calculations and features as the days and weeks go on, so keep checking back for the most current version. If you find something glaringly wrong, please PM me and I'll look into it.

https://www.dropbox.com/s/34pll180is...v1.0.xlsx?dl=0

Instructions:

- Click the link and click "No thanks, continue to view"

- This is a read only copy, so to make your own calculations, download the file on the top right via "Direct download". You may have to click "No thanks, continue to download" again.

- Once saved, open and click "Enable Editing".

- Change the yellow boxed items as desired to fit your own situation and assumptions.

I am making no guarantees on the accuracy of the calculations, and I am certainly not going to say this will apply to your own specific situation. However, I

*think*I did the calculations right, and I*think*it provides a good primer on what the MBCBP offers versus just taking the money and investing it on your own.I will make updates to the calculations and features as the days and weeks go on, so keep checking back for the most current version. If you find something glaringly wrong, please PM me and I'll look into it.

https://www.dropbox.com/s/34pll180is...v1.0.xlsx?dl=0

Instructions:

- Click the link and click "No thanks, continue to view"

- This is a read only copy, so to make your own calculations, download the file on the top right via "Direct download". You may have to click "No thanks, continue to download" again.

- Once saved, open and click "Enable Editing".

- Change the yellow boxed items as desired to fit your own situation and assumptions.

#

**2**Roll’n Thunder

Joined APC: Oct 2009

Position: Pilot

Posts: 3,603

Obviously, there has been a lot of hullabaloo going on around here with regards to the MBCBP and just what exactly it means for your retirement. Specifically, which was better...saving on taxes now and getting a lower return, or taking the hit on taxes and getting a potentially better return over the long run. Well, I wanted to see what the actual numbers were, so I put together a spreadsheet to compare them.

I am making no guarantees on the accuracy of the calculations, and I am certainly not going to say this will apply to your own specific situation. However, I

I will make updates to the calculations and features as the days and weeks go on, so keep checking back for the most current version. If you find something glaringly wrong, please PM me and I'll look into it.

https://www.dropbox.com/s/34pll180is...v1.0.xlsx?dl=0

Instructions:

- Click the link and click "No thanks, continue to view"

- This is a read only copy, so to make your own calculations, download the file on the top right via "Direct download". You may have to click "No thanks, continue to download" again.

- Once saved, open and click "Enable Editing".

- Change the yellow boxed items as desired to fit your own situation and assumptions.

I am making no guarantees on the accuracy of the calculations, and I am certainly not going to say this will apply to your own specific situation. However, I

*think*I did the calculations right, and I*think*it provides a good primer on what the MBCBP offers versus just taking the money and investing it on your own.I will make updates to the calculations and features as the days and weeks go on, so keep checking back for the most current version. If you find something glaringly wrong, please PM me and I'll look into it.

https://www.dropbox.com/s/34pll180is...v1.0.xlsx?dl=0

Instructions:

- Click the link and click "No thanks, continue to view"

- This is a read only copy, so to make your own calculations, download the file on the top right via "Direct download". You may have to click "No thanks, continue to download" again.

- Once saved, open and click "Enable Editing".

- Change the yellow boxed items as desired to fit your own situation and assumptions.

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**3**Gets Weekends Off

Joined APC: Jul 2018

Posts: 260

I have a few questions cause I am trying to understand what this MBCBP is and just 401(k) at Delta.

1) I understand as of now there is a 16% DC. In addition to the DC, is there a company match on a % I put in as well? I thought I saw this on APC or something where they also match 100% of 6%.

2) I will have close to a 40 year career at Delta and when I do this tool it shows I would be getting about $40,000 more a year without the MBCBP. Is there some spark notes on this MBCBP or a good link/article that explains exactly what this is so I can get a better understanding.

Thanks!

1) I understand as of now there is a 16% DC. In addition to the DC, is there a company match on a % I put in as well? I thought I saw this on APC or something where they also match 100% of 6%.

2) I will have close to a 40 year career at Delta and when I do this tool it shows I would be getting about $40,000 more a year without the MBCBP. Is there some spark notes on this MBCBP or a good link/article that explains exactly what this is so I can get a better understanding.

Thanks!

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**4**Gets Weekends Off

Joined APC: Nov 2016

Posts: 2,558

1) I understand as of now there is a 16% DC. In addition to the DC, is there a company match on a % I put in as well? I thought I saw this on APC or something where they also match 100% of 6%.

2) I will have close to a 40 year career at Delta and when I do this tool it shows I would be getting about $40,000 more a year without the MBCBP. Is there some spark notes on this MBCBP or a good link/article that explains exactly what this is so I can get a better understanding.

Thanks!

You’re probably not wrong on your look at the MBCBP. It’s more of a short time insurance, long term hindrance type of program. <-My opinion only, of course.

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**5**Gets Weekends Off

Joined APC: Sep 2017

Posts: 934

The fact that the OP has the withdrawal rate of MMIC at 4% and the annuity from the “other plan” at 6% makes me think there is definitely a hidden agenda on the OP’s part. At least it appears that way. Since the other plan is not inheritable then a fair comparison would be to give a reasonable return on the money say 8% for MMIC and draw it down to zero at some age say 85. I think that comparison would show the MMIC wildly better for almost everybody.

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**6**Gets Weekends Off

Joined APC: Sep 2008

Position: Kickin’ Back

Posts: 6,971

**Since the other plan is not inheritable**then a fair comparison would be to give a reasonable return on the money say 8% for MMIC and draw it down to zero at some age say 85. I think that comparison would show the MMIC wildly better for almost everybody.

Denny

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**7**seeing the large hubs...

Joined APC: Oct 2006

Position: 73N A

Posts: 3,711

Also, you know that everyone can change the numbers in seconds and it recalculates... It's not like we need to get a new piece of paper out and figure it all out again.

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**8**Gets Weekends Off

Joined APC: Apr 2016

Position: Looking left

Posts: 3,278

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**9**Gets Weekends Off

Joined APC: Sep 2017

Posts: 934

thank you for that information. Yes I mean the MBCBP. That is a lot of letters! Where is it written down it is inheritable? Is it to spouse only? Young children? Even so then the horizon of the MY MONEY should be until the actuarial age of your spouse. There are so many assumptions made for the my money comparison that are negative that it is clear where the OP’s thought process is.

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**10**Gets Weekends Off

Thread Starter

Joined APC: Jun 2019

Position: Currently freeloading

Posts: 528

I did that because most people generally consider the

*default*for retirement investments to be the 4% withdrawal rule. And the union has stated that the*default*(but not the only option) for the MBCBP upon retirement is to buy an annuity with it. As best I can find, immediate payment fixed lifetime annuities generally pay about 5-7% of the purchase price per year, hence 6%. If you have better knowledge, by all means, show me some data that allows us all to make a better estimate.Thread

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