MBCBP implementation announced…
05-25-2023, 03:45 PM
#11
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,456
Originally Posted by Jughead135
Does that take into account the tax-advantaged nature (deferred taxation)? You mention the lower tax rate expectation; what about avoiding current-year taxation on growth until withdrawal (at that expected lower tax rate)? I'm a big believer in maxing out tax-advantaged accounts....
I don't know anything (yet) about this investment vehicle (LIRKX--thanks to the OP for looking up the code), but, assuming it's at least middle-of-the-road, I suspect the tax treatment could make this more valuable than some critics would have us believe.
I don't know anything (yet) about this investment vehicle (LIRKX--thanks to the OP for looking up the code), but, assuming it's at least middle-of-the-road, I suspect the tax treatment could make this more valuable than some critics would have us believe.
Gunfighter opinion:
High income earners hitting the plan max should be investing in real estate. It is a great vehicle for storing wealth and creating retirement income.
YMMV DYODD BWYWWWYB Retirement is closer than you think it is.
05-25-2023, 03:55 PM
#12
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,456
Originally Posted by illini90
To go along with your 3% return on a bond fund? That’s what it historically returns. I’d rather have the 18% cash and invest some of it elsewhere, and use some of it towards fun today. If you put it in this plan, you’re there forever, watching it flatline. If you turn it down, you will have a bunch of cash and options to invest or spend. Investing isn’t always a tax advantaged account. Sometimes you need to invest in enhancing your life today, while you can enjoy it. Buy your ski condo today, use it with your kids and grand kids, sell it when you can’t ski anymore. I bet you’ll make better than 3% return. At least way I see it.
You don't need the biggest pile, if you have a steady stream of income.
05-25-2023, 04:10 PM
#13
Me? Just lucky to be here
Thread Starter
Joined APC: Sep 2021
Position: 757/767 FO
Posts: 80
Originally Posted by Planetrain
Are sure it’s LIRKX?
I googled and found LIRIX.
Not sure if it’s the right one.
First impression is use the MBCBP for your bond allocation and run the 401k plan a little hotter with equities. Take the 1.8% tailwind from lack of Alpa dues. Re-evaluate your asset allocation based upon your age.
I googled and found LIRIX.
Not sure if it’s the right one.
First impression is use the MBCBP for your bond allocation and run the 401k plan a little hotter with equities. Take the 1.8% tailwind from lack of Alpa dues. Re-evaluate your asset allocation based upon your age.
The initial release did not specify LIRIX or LIRKX. Admittedly, I assumed the K class fund over the I class but if anyone knows for sure please set us straight. We’ll learn more when details are released. For purposes of this discussion the class of the fund is not significant, though the K class’ expense ratio is about half that of the I class (0.11% v 0.06%). Regardless, performance is essentially identical between the two.
My time horizon to mandatory retirement is 20 years so I’m likely to decline but I’ve not run the numbers out yet.
-Bo
05-25-2023, 04:13 PM
#14
Me? Just lucky to be here
Thread Starter
Joined APC: Sep 2021
Position: 757/767 FO
Posts: 80
Originally Posted by Gunfighter
Two of my best real estate investments were a swimming pool and a timeshare. I lose about $5k per year in exchange for a couple weeks of vacation and countless afternoons with the family.
You don't need the biggest pile, if you have a steady stream of income.
You don't need the biggest pile, if you have a steady stream of income.
+1 on the pool. Great family time with all my little bandits.
-Bo
05-25-2023, 05:32 PM
#17
Gets Weekends Off
Joined APC: Oct 2017
Posts: 377
Originally Posted by capncrunch
If ALPA is giving up dues then they’re making it up somewhere else. Probably getting a chunk of the management fees. No way they’re giving up dues out of kindness.
05-25-2023, 05:36 PM
#18
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,410
Glad the Union made it optional. I'm out
I feel for new hires after June 1st that will be forced into this plan. Only reasonable scenario where the MBCBP is a good idea is someone close to retirement running their portfolio conservatively
I feel for new hires after June 1st that will be forced into this plan. Only reasonable scenario where the MBCBP is a good idea is someone close to retirement running their portfolio conservatively
05-25-2023, 06:00 PM
#20
Gets Weekends Off
Joined APC: Sep 2015
Position: UNA
Posts: 4,412
Originally Posted by hockeypilot44
I’m leaning towards opting out.
based off what has been published I think I’ll be better off with the cash.
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