Minimum Balance Plan
11-15-2022 | 11:04 AM
#211
Banned
Joined: Sep 2016
Posts: 8,831
Likes: 499
MBCBPs may not be off interest to you, and that’s fine. They are extremely popular with other high-earners like doctors, lawyers, small business owners, etc., or folks who have interest in deferring more income taxes than they might without such plans. Optionality is the key that everyone, including DALPA, has acknowledged is essential.
11-15-2022 | 11:09 AM
#212
Line Holder
Joined: Feb 2018
Posts: 606
Likes: 132
It’s hard to define a Deadzoner. I’m starting to think the Deadzoner in more of something you decide to be.
With that said, I have decided to become one. Kids now a days don’t know anything about flying with a Surface or life before MiCrew. Hell, they have never had to sign into the lounge. New hires getting 7ER is common and not a damn one of them has had to fill an ASAP because they got maddog’d when the altitude didn’t capture.
All I want is the post Covid hires to give me a little bit of their money.
With that said, I have decided to become one. Kids now a days don’t know anything about flying with a Surface or life before MiCrew. Hell, they have never had to sign into the lounge. New hires getting 7ER is common and not a damn one of them has had to fill an ASAP because they got maddog’d when the altitude didn’t capture.
All I want is the post Covid hires to give me a little bit of their money.
11-15-2022 | 11:23 AM
#213
Gets Weekends Off
Joined: Apr 2007
Posts: 5,529
Likes: 495
MBCBP is letting the tax tail wag the dog.
It is a good tactical vehicle for shifting tax burden in the near term (2-5) years. Assuming income tax rates don't move against you, tax savings (hopefully) overcomes the loss to inflation. It's bad for long term investing where beating inflation is required to build wealth. Equities and real estate build wealth much more effectively than fixed returns. The real winner of the MBCBP is the plan administrator who collects a fee for assets under management. If we get the optional plan, I may use it when close to leaving Delta.
It is a good tactical vehicle for shifting tax burden in the near term (2-5) years. Assuming income tax rates don't move against you, tax savings (hopefully) overcomes the loss to inflation. It's bad for long term investing where beating inflation is required to build wealth. Equities and real estate build wealth much more effectively than fixed returns. The real winner of the MBCBP is the plan administrator who collects a fee for assets under management. If we get the optional plan, I may use it when close to leaving Delta.
11-15-2022 | 11:26 AM
#214
Gets Weekends Off
Joined: Sep 2014
Posts: 5,128
Likes: 91
Curious where you get this idea? Everything I’ve read through official channels suggests this will either be optional or it won’t happen. I know all the angst is about a program that would theoretically mandate participation…which no one I interact with supports.
11-15-2022 | 11:29 AM
#215
Gets Weekends Off
Joined: Sep 2014
Posts: 5,128
Likes: 91
11-15-2022 | 11:30 AM
#216
Gets Weekends Off
Joined: Apr 2007
Posts: 5,529
Likes: 495
IIRC, they also have the flexibility to set a higher interest crediting rate where the business can absorb the difference in down years. It is actually a great plan if you draw a huge salary from a business you also own.
11-15-2022 | 11:31 AM
#217
Banned
Joined: Sep 2016
Posts: 8,831
Likes: 499
We won’t get this plan with optionality. Where we go from there depends on your personal level of cynicism/optimism
11-15-2022 | 11:36 AM
#218
Gets Weekends Off
Joined: Aug 2020
Posts: 175
Likes: 0
11-15-2022 | 11:48 AM
#219
Gets Weekends Off
Joined: Apr 2007
Posts: 5,529
Likes: 495
If "showing my math" actually changed anybody's mind, most of the readers would have set the the DPSP autopilot to "boglehead technique" and invested every available outside dollar in value add real estate and income property over the last decade. Math doesn't change opinions, emotions do.
11-15-2022 | 11:53 AM
#220
Moderator
Joined: Dec 2007
Posts: 7,252
Likes: 95
From: DAL 330
I get what you’re saying about that specific part of the vacation AIP (accelerated accrual)…but isn’t everything a give and take? The other side of that coin is that senior pilots get an additional week of vacation. I may be losing what you’re getting at in internet translation.
All good - its hard to coney nuance on the interwebs. I did not see anything about an additional week of vacation and could have easily missed it, but that along with increased value per day and faster accrual would definitely spread the benefit throughout the Pilot group. I would love to see that and hope we get it.
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