MBCBP
05-19-2024 | 08:58 AM
#41
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Joined: Jul 2008
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No, but with 1 year captains, it’s quite possible to save your $23k in the 401k plus the 17% to the $69,000 max before MBCBP. All the rest to the MBCBP. Additionally, many have working spouses. Are you telling me a Delta pilot (working spouse or not) can’t save $90k/year (between all accounts)? It’s never been easier to. This is just illustrative of what .7% means over a long time period.
05-19-2024 | 09:21 AM
#42
Gets Weekends Off
Joined: Sep 2017
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No, but with 1 year captains, it’s quite possible to save your $23k in the 401k plus the 17% to the $69,000 max before MBCBP. All the rest to the MBCBP. Additionally, many have working spouses. Are you telling me a Delta pilot (working spouse or not) can’t save $90k/year (between all accounts)? It’s never been easier to. This is just illustrative of what .7% means over a long time period.
05-19-2024 | 09:24 AM
#43
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Joined: Feb 2007
Posts: 1,077
Likes: 4
Use a year 2 ER FO. 183.6x88 hours month. 7% PS. 17%DC. $6k per diem. $2,400 Delta HSA. Just over $250k total comp. $90k of $251k is roughly 35% savings rate (not unheard of if you’re serious about saving). That doesn’t include a spouse working or any other income. Obviously, the savings % drops quickly beyond year 2 to get $90k.
Again, my entire point was that .7% matters over long run, not specific numbers.
Again, my entire point was that .7% matters over long run, not specific numbers.
05-19-2024 | 09:44 AM
#44
Moderator
Joined: Sep 2011
Posts: 8,352
Likes: 1,374
Sorry, couldn’t resist 😉
05-19-2024 | 12:19 PM
#45
Line Holder
Joined: Mar 2014
Posts: 509
Likes: 21
From: 757/767
Their MBCBP plan is structured differently as well. I dont have the numbers in front of me, but i believe they have a defined limit on contributions as opposed to ours which is only limited by earnings.
05-19-2024 | 12:25 PM
#46
Gets Weekends Off
Joined: Apr 2007
Posts: 5,629
Likes: 654
Ha! Every time I see an MBCBP thread pop up, I know that it’s going to be because something else undesirable was discovered and I have to try my hardest not to drop a “told you so” every time.
Can you point to the doll where the MBCBP hurt you? Are you doubting your decision and looking for confirmation bias?
During the opt out period I was being chastised for even thinking it may be a bad deal. 90% made it seem like the best thing since sliced bread.
Just other pilots who chose differently looking to do the same as you are doing by jumping in with the "told you so" comments.
My planning said that I needed >8% annually to beat simply investing 401(k) excess in a brokerage account. It sounds like the MBCBP is off to a pretty rough start.
Care to show your math in for the education or entertainment benefit of APC?
But hey, at least they’re investing in socially conscious companies, so at least people know their money is hard at work supporting DEI.
Can you point to the doll where the MBCBP hurt you? Are you doubting your decision and looking for confirmation bias?
During the opt out period I was being chastised for even thinking it may be a bad deal. 90% made it seem like the best thing since sliced bread.
Just other pilots who chose differently looking to do the same as you are doing by jumping in with the "told you so" comments.
My planning said that I needed >8% annually to beat simply investing 401(k) excess in a brokerage account. It sounds like the MBCBP is off to a pretty rough start.
Care to show your math in for the education or entertainment benefit of APC?
But hey, at least they’re investing in socially conscious companies, so at least people know their money is hard at work supporting DEI.
Last edited by Gunfighter; 05-19-2024 at 12:41 PM.
05-19-2024 | 12:41 PM
#47
Gets Weekends Off
Joined: Apr 2007
Posts: 5,629
Likes: 654
There are several cases where there is validity in the tax savings. The first one is 100% tax savings.
-As part of an estate plan that includes charitible giving, the 35% upfront savings on MBCBP is a guaranteed return. The net effect is zero income taxes for every dollar invested and grown.
-If the estate plan includes leaving the account to an heir in a lower tax bracket, it represents immediate savings along with reduced taxation at withdrawal.
-For pilots planning on retiring in a lower tax bracket and/or a lower tax state, they have kicked the can down the road in expectation of paying less in the future.
05-19-2024 | 01:34 PM
#48
Gets Weekends Off
Joined: Apr 2016
Posts: 4,026
Likes: 217
From: Looking left
No, but with 1 year captains, it’s quite possible to save your $23k in the 401k plus the 17% to the $69,000 max before MBCBP. All the rest to the MBCBP. Additionally, many have working spouses. Are you telling me a Delta pilot (working spouse or not) can’t save $90k/year (between all accounts)? It’s never been easier to. This is just illustrative of what .7% means over a long time period.
05-19-2024 | 01:39 PM
#49
Thread Starter
Racketeer
Joined: Mar 2015
Posts: 13,359
Likes: 845
From: N60.4858 W149.9327
We have some pilots with questionable understanding of the tax codes. We also have some that like feeding their ego with a large account balance despite the future tax liability.
There are several cases where there is validity in the tax savings. The first one is 100% tax savings.
-As part of an estate plan that includes charitible giving, the 35% upfront savings on MBCBP is a guaranteed return. The net effect is zero income taxes for every dollar invested and grown.
-If the estate plan includes leaving the account to an heir in a lower tax bracket, it represents immediate savings along with reduced taxation at withdrawal.
-For pilots planning on retiring in a lower tax bracket and/or a lower tax state, they have kicked the can down the road in expectation of paying less in the future.
There are several cases where there is validity in the tax savings. The first one is 100% tax savings.
-As part of an estate plan that includes charitible giving, the 35% upfront savings on MBCBP is a guaranteed return. The net effect is zero income taxes for every dollar invested and grown.
-If the estate plan includes leaving the account to an heir in a lower tax bracket, it represents immediate savings along with reduced taxation at withdrawal.
-For pilots planning on retiring in a lower tax bracket and/or a lower tax state, they have kicked the can down the road in expectation of paying less in the future.
05-19-2024 | 02:26 PM
#50
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Joined: Nov 2017
Posts: 3,529
Likes: 697
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