MBCBP implementation announced…
07-17-2023, 08:43 AM
#452
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,467
Originally Posted by DeltaboundRedux
This entire thread needs to be renamed “An Embarrassment of Riches”
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Your 7% above $250,000 might be a household. Looking at 300k (the closest I could find to the MBCBP threshold) it looks like 2.3% of individuals exceed the mark. It's an even more exclusive club debating the pinhead angel dancers.
We are a group who respects competance and measures performance on a daily basis. It is only natural that we gravitate toward measuring investment performance and tax optimization.
It doesn't show on APC, but I suspect the majority of us are grateful for having rich people problems.
07-17-2023, 05:47 PM
#453
Gets Weekends Off
Joined APC: Dec 2007
Position: 797 F/O
Posts: 113
Originally Posted by Gunfighter
It doesn't have to be an embarrassment. Use the excess in a way that aligns with your values. There are plenty of worthwhile charities. Support labor by spending some. As my liberal leaning son likes to say, the best thing you can do with your money is spend it. You are helping people by supportibg the economy.
Your 7% above $250,000 might be a household. Looking at 300k (the closest I could find to the MBCBP threshold) it looks like 2.3% of individuals exceed the mark. It's an even more exclusive club debating the pinhead angel dancers.
We are a group who respects competance and measures performance on a daily basis. It is only natural that we gravitate toward measuring investment performance and tax optimization.
It doesn't show on APC, but I suspect the majority of us are grateful for having rich people problems.
Your 7% above $250,000 might be a household. Looking at 300k (the closest I could find to the MBCBP threshold) it looks like 2.3% of individuals exceed the mark. It's an even more exclusive club debating the pinhead angel dancers.
We are a group who respects competance and measures performance on a daily basis. It is only natural that we gravitate toward measuring investment performance and tax optimization.
It doesn't show on APC, but I suspect the majority of us are grateful for having rich people problems.
07-17-2023, 05:53 PM
#454
Gets Weekends Off
Joined APC: Dec 2007
Position: 797 F/O
Posts: 113
I’m on the grateful side, and this question may have already been answered. Does any of the overage pay from the company contribution that goes into our paycheck as currently exists count toward the gross income on disability compensation formulas?
07-17-2023, 06:05 PM
#455
Gets Weekends Off
Joined APC: Feb 2020
Posts: 735
Originally Posted by DeltaboundRedux
This entire thread needs to be renamed “An Embarrassment of Riches”
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Personally I appreciate the questions, discussions, and perspectives regarding a new aspect of the PWA and the ramifications thereof ... and hearing about Superbowl XX.
Those that feel embarrassed reading this thread always have the choice to not read this thread.
A5S
07-17-2023, 07:25 PM
#456
Gets Weekends Off
Joined APC: Jul 2007
Position: B737 FO
Posts: 665
Originally Posted by All 5 Stages
I fail to see what is embarrassing.
Personally I appreciate the questions, discussions, and perspectives regarding a new aspect of the PWA and the ramifications thereof ... and hearing about Superbowl XX.
Those that feel embarrassed reading this thread always have the choice to not read this thread.
A5S
Personally I appreciate the questions, discussions, and perspectives regarding a new aspect of the PWA and the ramifications thereof ... and hearing about Superbowl XX.
Those that feel embarrassed reading this thread always have the choice to not read this thread.
A5S
And even though this is a public forum and non-pilots do read this, I like having a place to discuss these topics without feeling like a rich d-bag like I would if I for example: loudly talked about "what should I do with the money I make over $330k?" in the crew van or around non-airline friends. Now that would be embarrassing.
07-17-2023, 08:14 PM
#457
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,467
Originally Posted by BlueSkies
I get what he's saying, but at the same time it's a spirited discussion about how to best manage our finances and maximize our retirement, so not a bad thing.
And even though this is a public forum and non-pilots do read this, I like having a place to discuss these topics without feeling like a rich d-bag like I would if I for example: loudly talked about "what should I do with the money I make over $330k?" in the crew van or around non-airline friends. Now that would be embarrassing.
And even though this is a public forum and non-pilots do read this, I like having a place to discuss these topics without feeling like a rich d-bag like I would if I for example: loudly talked about "what should I do with the money I make over $330k?" in the crew van or around non-airline friends. Now that would be embarrassing.
07-18-2023, 05:05 AM
#458
Gets Weekends Off
Joined APC: Oct 2014
Posts: 895
Originally Posted by SOFA
I’m on the grateful side, and this question may have already been answered. Does any of the overage pay from the company contribution that goes into our paycheck as currently exists count toward the gross income on disability compensation formulas?
07-18-2023, 07:21 AM
#459
Super Moderator
Joined APC: Jul 2006
Posts: 5,564
Originally Posted by DeltaboundRedux
This entire thread needs to be renamed “An Embarrassment of Riches”
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Only 7% of Americans earn more than $250k a year.
Much of the discussion here is in the realm of arguing about “how many angels can dance on a head of a pin?”
As long as you invest the extra, hard to see where you can go wrong.
Problems are still problems. Just because they're good problems to have, doesn't mean we can't have spirited debates about them. I'll never be embarrassed about where I am in life, I worked hard, spent a lot of money and spent a lot of time on the road and in 3rd world dumps to get here. I great up in a small/poor midwestern farm town, so I get that not many are in the position we're in, most of my family is in that bucket. But generally speaking, those people are on this forum. I don't believe anyone is a saying poor me, they're simply debating what could be the best avenue for them.
Break break,
I don't even think you need to invest extra to "not go wrong." Well I guess you can "invest" the extra in a vacation, boat, pool or something else that provides great family time now. I know guys love to stay if it flies, floats, or ...., but most of the people that say that are married, so might as well get one or two of the others lol. I just prefer to have control over that option.
07-18-2023, 11:34 AM
#460
New Hire
Joined APC: Aug 2018
Posts: 4
For the issue of MBCBP having low equity % – be more aggressive in 401k to balance it out.
If you want 100% equities, calculate earnings shortfall only to age 59.5 as you can roll $ to an IRA at 59.5.
MBCBP gives you optionality. For instance, pilot making $500k in 2026. 18% is $90k. Can also contribute $30k pre-tax. And if aggressive saver make ~$30k Post-Tax -which can be converted to Roth. Getting ~$150k into retirement. If don’t want that much, can stop making any voluntary contributions and get $90k to retirement. Pilot has control and can decide on the amount to retirement.
Without MBCBP, only get $73.5k to retirement, no ability to increase. Might be enough but optionality is lost.
This optionality is powerful, especially after 59.5. Can roll MBCBP to an IRA and then convert it to a Roth after retiring when at a lower tax bracket.
If you want 100% equities, calculate earnings shortfall only to age 59.5 as you can roll $ to an IRA at 59.5.
MBCBP gives you optionality. For instance, pilot making $500k in 2026. 18% is $90k. Can also contribute $30k pre-tax. And if aggressive saver make ~$30k Post-Tax -which can be converted to Roth. Getting ~$150k into retirement. If don’t want that much, can stop making any voluntary contributions and get $90k to retirement. Pilot has control and can decide on the amount to retirement.
Without MBCBP, only get $73.5k to retirement, no ability to increase. Might be enough but optionality is lost.
This optionality is powerful, especially after 59.5. Can roll MBCBP to an IRA and then convert it to a Roth after retiring when at a lower tax bracket.
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