MBCBP implementation announced…
05-25-2023, 02:44 PM
#2
Gets Weekends Off
Joined APC: May 2022
Posts: 204
Originally Posted by Bo Darville
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo
-Bo
05-25-2023, 02:45 PM
#3
Gets Weekends Off
Joined APC: Oct 2009
Position: Pilot
Posts: 2,923
Originally Posted by Bo Darville
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo
-Bo
05-25-2023, 02:53 PM
#4
Gets Weekends Off
Joined APC: Apr 2007
Posts: 3,815
Originally Posted by Bo Darville
Negotiator’s Notepad 23-17 outlines implementation of the MBCBP. The selected fund will be LIRKX. Thoughts from the financial gurus among us?
-Bo
-Bo
The best use case I can argue for is short term income tax arbitrage. Using it to defer income in expectation of a lower tax rate in a couple years could be a benefit to some older pilots.
A younger pilot using it for a long term retirement savings could do much better.
05-25-2023, 03:20 PM
#5
Gets Weekends Off
Joined APC: Sep 2011
Position: Hates Commuting
Posts: 767
Originally Posted by Gunfighter
Good for some, bad for others, glad it's optional.
The best use case I can argue for is short term income tax arbitrage. Using it to defer income in expectation of a lower tax rate in a couple years could be a benefit to some older pilots.
A younger pilot using it for a long term retirement savings could do much better.
The best use case I can argue for is short term income tax arbitrage. Using it to defer income in expectation of a lower tax rate in a couple years could be a benefit to some older pilots.
A younger pilot using it for a long term retirement savings could do much better.
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.
05-25-2023, 03:26 PM
#6
Gets Weekends Off
Joined APC: Oct 2017
Posts: 311
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.
05-25-2023, 03:32 PM
#7
Gets Weekends Off
Joined APC: Jun 2015
Posts: 1,376
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.
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.
05-25-2023, 03:33 PM
#8
Gets Weekends Off
Joined APC: Apr 2007
Posts: 3,815
Originally Posted by Go Cards go
In addition to being tax deferred, the contributions are exempt from ALPA dues so there’s an instant 1.8ish% boost.
05-25-2023, 03:39 PM
#9
Gets Weekends Off
Joined APC: Dec 2013
Posts: 2,033
I don’t think I have ever gotten excess 401k cash. Is it combined company/personal contributions over $56k? So by lowering your own contributions you have some control over how much and how soon in the year money would go into the MBCP? Or is it just the $19k 401 limit?
Last edited by Nantonaku; 05-25-2023 at 03:58 PM.
05-25-2023, 03:40 PM
#10
Gets Weekends Off
Joined APC: Dec 2013
Position: 737 CA
Posts: 125
Originally Posted by Go Cards go
In addition to being tax deferred, the contributions are exempt from ALPA dues so there’s an instant 1.8ish% boost.
Thread
Thread Starter
Forum
Replies
Last Post
