What's the Latest at ASA/Expressjet?
10-30-2015, 03:59 PM
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What's the Latest at ASA/Expressjet?
Originally Posted by wmupilot85
I'd love to and I used to. What I found was the company match and ROI was so little, that I was better off putting that money toward student loans. Over the long term, the interest on student loans is much higher than what I'd earn off a 401k account.
I don't want to be the guy who retires with $2.5M in retirement, but I have $3m in debt. If I go to 60, I have 30 more years of doing this. If I get into a major, I can max out 3 retirement account per year and still have a boat load of money.
I don't want to be the guy who retires with $2.5M in retirement, but I have $3m in debt. If I go to 60, I have 30 more years of doing this. If I get into a major, I can max out 3 retirement account per year and still have a boat load of money.
Actually, your rate of return is 50% on the match. You will make around $65k this year. For a 3% match, that's around $2000 that you are leaving on the table. And that doesn't include the accrued interest you will make on the $6000! I mean, we are talking about $160 per pay check on average. If you can't afford that much each pay check in order to make 100% ROI, then you are doing it wrong.
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10-30-2015, 04:56 PM
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so on another note skywest has a very large group of schmoes in new hire class.....can the semantics be done already? I'm just very tired of the constant lectures about performance..................
10-31-2015, 08:25 AM
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And our most recent position notice shows 4 upgrades.
10-31-2015, 09:06 AM
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Originally Posted by Nevets
Actually, your rate of return is 50% on the match. You will make around $65k this year. For a 3% match, that's around $2000 that you are leaving on the table. And that doesn't include the accrued interest you will make on the $6000! I mean, we are talking about $160 per pay check on average. If you can't afford that much each pay check in order to make 100% ROI, then you are doing it wrong.
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10-31-2015, 09:13 AM
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Originally Posted by Nevets
Actually, your rate of return is 50% on the match. You will make around $65k this year. For a 3% match, that's around $2000 that you are leaving on the table. And that doesn't include the accrued interest you will make on the $6000! I mean, we are talking about $160 per pay check on average. If you can't afford that much each pay check in order to make 100% ROI, then you are doing it wrong.
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10-31-2015, 11:28 AM
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Originally Posted by freezingflyboy
Like I said, seems like your current self is borrowing from your future self at a very high rate of interest. WMUpilot, I hope your math is right!
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
10-31-2015, 11:42 AM
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Originally Posted by wmupilot85
Oh, I am. Remember, if I make a $1,000 payment to student loans, that all $1,000 goes toward principal, which means a significant amount of interest gets kicked off instead of $700 going toward interest and $300 toward principal (just throwing a number out there). Total savings outweigh what I'd earn in interest from a 401k and the free money.
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
10-31-2015, 11:56 AM
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What's the Latest at ASA/Expressjet?
Originally Posted by wmupilot85
Oh, I am. Remember, if I make a $1,000 payment to student loans, that all $1,000 goes toward principal, which means a significant amount of interest gets kicked off instead of $700 going toward interest and $300 toward principal (just throwing a number out there). Total savings outweigh what I'd earn in interest from a 401k and the free money.
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
If putting in $4000 a year into your 401k is costing you more than $2000 in student loan interest, then you are potentially better off, depending on how the market does. And that would mean that your student loan interest is astronomically high! Also, keep in mind that your student loan interest is tax deductible. So your effective interest is lowered by your marginal tax rate.
My original point though was that your 401k wasn't just the interest you earned on what you put in. It's the interest PLUS the 50% match. So what you are is actually 50% + whatever interest the total ($6k) earns. Again, your ROI is actually 50% +.
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10-31-2015, 12:40 PM
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Originally Posted by Nevets
If putting in $4000 a year into your 401k is costing you more than $2000 in student loan interest, then you are potentially better off, depending on how the market does. And that would mean that your student loan interest is astronomically high! Also, keep in mind that your student loan interest is tax deductible. So your effective interest is lowered by your marginal tax rate.
My original point though was that your 401k wasn't just the interest you earned on what you put in. It's the interest PLUS the 50% match. So what you are is actually 50% + whatever interest the total ($6k) earns. Again, your ROI is actually 50% +.
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My original point though was that your 401k wasn't just the interest you earned on what you put in. It's the interest PLUS the 50% match. So what you are is actually 50% + whatever interest the total ($6k) earns. Again, your ROI is actually 50% +.
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10-31-2015, 04:35 PM
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Originally Posted by AtlCSIP
And our most recent position notice shows 4 upgrades.
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