I bought a bunch on 2/14 DJIA 44546.08... terrible market timing. But I do every year. Other than that day, dollar cost averaging FTW. My 401k is suffering lets talk about age 68!

 

Yep... There is definitely a cross section of people approaching mandatory retirement (me included), that face serious uncertainty in the markets. Hope really *isn't* a strategy, but for those with a short remaining "shelf life", there are not many options left...

S

 

this is probably going to sound callous, and I truly do not mean it that way. But as you are approaching mandatory retirement age, are you not shifting your investing strategy to more bonds and less equity stocks?

again, that is in no way trying to dismiss the reality that some folks are facing right now.

 

If you're in stocks or mutual funds, hope is all you have. 0 control but a track record worth betting on. I'm just gonna let it ride. If the number doesn't hit by the time I wanna get out (planned for 58), then I'll just keep strappin' on the plow.

 

No problem. I get where you are coming from. No offense taken at all.

Yes, I have shifted some to bonds. And yes, I have a financial planner guiding my investments. I'm lucky that my wife has a decent job and future solid retirement options. It gives me some additional time to ride things out. Regardless, I am fortunate and I should be fine.

One thought that I would like to put out here (to all), with all due respect, is that each individual career path is different. Timing of entering the career, internal factors (family medical and such), external factors (company bk, black swan events)... all this and other things influence a pilots ability to invest early and often.

I am truly happy for those that have experienced (or plan to experience) unimpeded careers. Future careers that potentially amass $10m+ 401k balances. This being said, we all should respect each other. I haven't walked in other's shoes; nor have others walked in mine.

Thanks for your comments. I mean this.

S

 

Mother of god

 

I was curious so did some rough math with a compound interest calculator. Historic total return for the S&P has been 10% a year. Say you upgrade at 27 like some people. You’re definitely going to hit the IRS max when you’re a captain. 38 years at 5833 a month (hitting the 70k max) has your 401k at 30 million when you hit 65. That’s not including the catchup years or the fact that the max will increase, or the fact that you would already have a little in before you upgraded. That’s literally just the 401k not counting any other investments.

That number seems insane. Are we going to have normal line dudes retiring in 30 years with 30 million dollars in their 401k? Is my math off?

 

Because of the bonus? Fidelity has automated purchasing. You could have spread that purchase out over 4-6 months. Or even a year.

 

According to AI a 30 year career now with normal returns and raises and 401k bumps would result in roughly 15 million. $1 in 2055 would be worth .47 cents.

 

Makes sense, I didn’t adjust for inflation. Wild.