Boomer retirement plans fall short
02-19-2011, 09:36 AM
#1
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Boomer retirement plans fall short
Too many variables when depending on a 401 K due to the connection with stocks .
Interesting read.
Boomers Find 401(k) Plans Come Up Short - WSJ.com
Interesting read.
Boomers Find 401(k) Plans Come Up Short - WSJ.com
02-20-2011, 12:30 PM
#3
Self Employed.
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
A very interesting article.
People like to point the finger at the Baby Boomers yet we have a generation of people here who seem to throw caution to the wind in regards ot the way they earn a living.
If Boomers can not make it in retirement after a lifetime of high earnings, 401K investments and social security a typical regional pilot is doomed. By the time most of us retire after a career of mediocre earnings in an era of no pensions, poor stock market performance and a well earned fear of home ownership the only solution will be soilent green.
Big and more painful changes lie ahead. I can not believe that social security will exist in 20 years and it seems likely that state and federal government will be forced to cut or eliminate many of the entitlements that government workers depend on.
A paradigm shift is needed.
Skyhigh
If Boomers can not make it in retirement after a lifetime of high earnings, 401K investments and social security a typical regional pilot is doomed. By the time most of us retire after a career of mediocre earnings in an era of no pensions, poor stock market performance and a well earned fear of home ownership the only solution will be soilent green.
Big and more painful changes lie ahead. I can not believe that social security will exist in 20 years and it seems likely that state and federal government will be forced to cut or eliminate many of the entitlements that government workers depend on.
A paradigm shift is needed.
Skyhigh
Last edited by SkyHigh; 02-20-2011 at 01:31 PM.
02-20-2011, 03:53 PM
#4
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Originally Posted by SkyHigh
People like to point the finger at the Baby Boomers yet we have a generation of people here who seem to throw caution to the wind in regards ot the way they earn a living.
If Boomers can not make it in retirement after a lifetime of high earnings, 401K investments and social security a typical regional pilot is doomed. By the time most of us retire after a career of mediocre earnings in an era of no pensions, poor stock market performance and a well earned fear of home ownership the only solution will be soilent green.
Big and more painful changes lie ahead. I can not believe that social security will exist in 20 years and it seems likely that state and federal government will be forced to cut or eliminate many of the entitlements that government workers depend on.
A paradigm shift is needed.
Skyhigh
If Boomers can not make it in retirement after a lifetime of high earnings, 401K investments and social security a typical regional pilot is doomed. By the time most of us retire after a career of mediocre earnings in an era of no pensions, poor stock market performance and a well earned fear of home ownership the only solution will be soilent green.
Big and more painful changes lie ahead. I can not believe that social security will exist in 20 years and it seems likely that state and federal government will be forced to cut or eliminate many of the entitlements that government workers depend on.
A paradigm shift is needed.
Skyhigh
Sure you may get a 10 or 12 % pay increase over 4 years but one must consider whether or not you're breaking even or falling behind even with said raise due to inflation .
How does one cover a loss to ones 401 K while in retirement ?
Cpt.J.F.Jimenez
Last edited by DYNASTY HVY; 02-20-2011 at 03:56 PM. Reason: deleted an eye out of basis
02-21-2011, 08:19 PM
#5
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Posts: 21
Lots and lots of people have some serious financial making up to do in order to be able to retire. If you want to have just $4-$5k a month you need a couple of million in the bank, and even amount that would be hard to take our each month for any serious length of time. Sad 
02-21-2011, 11:50 PM
#6
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Joined APC: Nov 2009
Posts: 5,194
Originally Posted by Blackwing
Shocker. 
The Me Generation will go down in history as the most financially irresponsible generation ever.
The Me Generation will go down in history as the most financially irresponsible generation ever.Disregard, someone advocating the break up of the United States probably thinks the gov't should take care of them and provide for their retirement. I remember a time when socialist/communist rhetoric would land you a free ride out of the country, or at least the shame to leave on your own... sigh.
02-22-2011, 03:54 AM
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Originally Posted by Grumble
Wow, unless you have 7 figures in the bank for retirement, all earned and not given... this is one of the most shallow and uneducated comments on this board. Personally I think my own generation is the most financially irresponsible "Me, instant gratification" generation ever.
Disregard, someone advocating the break up of the United States probably thinks the gov't should take care of them and provide for their retirement. I remember a time when socialist/communist rhetoric would land you a free ride out of the country, or at least the shame to leave on your own... sigh.
Disregard, someone advocating the break up of the United States probably thinks the gov't should take care of them and provide for their retirement. I remember a time when socialist/communist rhetoric would land you a free ride out of the country, or at least the shame to leave on your own... sigh.
The one way around running into financial trouble during retirement is to find a place where you can live comfortably and that may include living outside the U.S ie Belize ,etc.
It's something to look into if you think the money you will be getting is not enough to cover living stateside.
Cpt.J.F.Jimenez
02-24-2011, 07:48 AM
#8
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Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
Pilot career benefits
Originally Posted by DYNASTY HVY
Your first point would be true if it were not for the fact that the wages in some industries lag so far behind in regards to adjusting for inflation on a yearly basis that it's not even funny.
Sure you may get a 10 or 12 % pay increase over 4 years but one must consider whether or not you're breaking even or falling behind even with said raise due to inflation .
How does one cover a loss to ones 401 K while in retirement ?
Cpt.J.F.Jimenez
Sure you may get a 10 or 12 % pay increase over 4 years but one must consider whether or not you're breaking even or falling behind even with said raise due to inflation .
How does one cover a loss to ones 401 K while in retirement ?
Cpt.J.F.Jimenez
The cost of college and training are coming close to that of a starter house. Why not just buy the house instead and work at the post office? It really is a better idea than the prospect of initiating a flying career today.
Skyhigh
02-28-2011, 10:34 AM
#9
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Posts: 32
Slow and steady may work for some.
I left a freight job after 18 years making a base pay of $63,000 per year. Spent a couple of years at a low paying ($32,000) job, but came away with good experience and a useful type rating (the company had no training contract). Now I am in management (still flying) and make a respectable salary. The pilots who work for me start out at the lowest end with $45,000 for a pilot with about 1,500 hours. We bump them up to $55,000 plus within one year. We do have a training contract to protect the wages of those who choose to stick around. Pilots coming with 3,000 hours or so generally start at $55,000 per year. The neat thing at the present company is we are employee owned and have 7 diversified companies within the mother company. Average growth of company stock has been slightly better that 15% per year. Employee owners who contribute to a pretty standard 401K receive a nice company match in company stock. Even at only 8 % annual increase an employee earning only $30,000 per year will have over $2 million in matching funds alone (plus the 401K) if they stick around for 30 years. I have no problem with young pilots chasing the dream to become airline pilots, but there are alternatives and receiving a decent paycheck at a reputable company with little chance of being laid off is not something a pilot should look down their nose at. Drive a freighter around, work for a sound charter company and you may reap the benefits. I have been a professional pilot for nearly 30 years, never been laid off and have an acceptable retirement nest egg to look forward to. Never made the money the UPS and FEDEX guys do but I have always been comfortable.
02-28-2011, 10:53 AM
#10
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Joined APC: Oct 2005
Position: Trying not to crash
Posts: 1,260
Originally Posted by sddo
I left a freight job after 18 years making a base pay of $63,000 per year. Spent a couple of years at a low paying ($32,000) job, but came away with good experience and a useful type rating (the company had no training contract). Now I am in management (still flying) and make a respectable salary. The pilots who work for me start out at the lowest end with $45,000 for a pilot with about 1,500 hours. We bump them up to $55,000 plus within one year. We do have a training contract to protect the wages of those who choose to stick around. Pilots coming with 3,000 hours or so generally start at $55,000 per year. The neat thing at the present company is we are employee owned and have 7 diversified companies within the mother company. Average growth of company stock has been slightly better that 15% per year. Employee owners who contribute to a pretty standard 401K receive a nice company match in company stock. Even at only 8 % annual increase an employee earning only $30,000 per year will have over $2 million in matching funds alone (plus the 401K) if they stick around for 30 years. I have no problem with young pilots chasing the dream to become airline pilots, but there are alternatives and receiving a decent paycheck at a reputable company with little chance of being laid off is not something a pilot should look down their nose at. Drive a freighter around, work for a sound charter company and you may reap the benefits. I have been a professional pilot for nearly 30 years, never been laid off and have an acceptable retirement nest egg to look forward to. Never made the money the UPS and FEDEX guys do but I have always been comfortable.
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