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11-27-2024 | 05:13 AM

#141

AF OneWire

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Joined: Feb 2024

Posts: 444

Likes: 88

Quote:

Originally Posted by 89Pistons

Some won't be financially able to max out their PRAP due to present and past circumstances.

These must be all the guys I fly with who have boats, RVs, and planes.

11-27-2024 | 05:39 AM

#142

Swakid8

Gets Weekends Off

Joined: Apr 2015

Posts: 2,923

Likes: 95

Quote:

Originally Posted by PK387

That’s basically the conclusion that I’ve come to: this LOA is a good deal for WB CAs and/or those in their late 50s or older. But it’s not a good deal for the majority of our pilots.

Look at the demographics of who’s pushing for a yes vote…..

They all have the same talking points not realizing that this takes away the choice for majority of the pilots here on maximizing their PRAP contributions….

Its all good, already submitted my no vote….

11-27-2024 | 07:30 AM

#143

RatherBeVFR

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Joined: Aug 2017

Posts: 8

Likes: 0

Reading all this, why haven’t we already submitted a plan to the IRS? That’s so frustrating to me.

What is the estimated implementation if we vote no? Seems like we screwed up the implementation language in UPA23.

11-27-2024 | 07:54 AM

#144

FlyPurdue

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Joined: May 2009

Posts: 516

Likes: 6

From: 756

I am quite surpised that so many of you like 'PRAP Cash.' The fact that it goes away with this LOA is more than enough reason for a yes vote.

11-27-2024 | 08:31 AM

#145

PK387

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Joined: Apr 2016

Posts: 378

Likes: 31

You’re surprised that people like cash?

11-27-2024 | 08:36 AM

#146

FlyPurdue

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Joined: May 2009

Posts: 516

Likes: 6

From: 756

Quote:

Originally Posted by PK387

You’re surprised that people like cash?

I am surprised, because they get a 37% haircut on every dollar of that cash.

you don’t like how conservative the CBP is…make your PRAP more aggressive to make up the difference.

11-27-2024 | 09:10 AM

#147

PK387

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Joined: Apr 2016

Posts: 378

Likes: 31

Quote:

Originally Posted by FlyPurdue

I am surprised, because they get a 37% haircut on every dollar of that cash.

But it’s trivially easy to show that, for someone like me with decades to go, you could take a 50% haircut and still come out way ahead compared to having your tax-deferred dollars locked into the CBP with its low equity allocation. Not to mention the fact that you can do other stuff with cash too if you have other priorities in your life.

Quote:

Originally Posted by FlyPurdue

you don’t like how conservative the CBP is…make your PRAP more aggressive to make up the difference.

The fact that I can take more risk elsewhere in my portfolio to make up for the drawbacks of this LOA is nowhere near a good enough reason for me to vote yes.

11-27-2024 | 09:28 AM

#148

ThumbsUp

Gets Weekends Off

Joined: Mar 2018

Posts: 3,635

Likes: 210

Quote:

Originally Posted by FlyPurdue

I am surprised, because they get a 37% haircut on every dollar of that cash.

you don’t like how conservative the CBP is…make your PRAP more aggressive to make up the difference.

Because you have to take an equivalent (for many of us) haircut on the RMD or maybe more, it doesn’t take much time to make up the difference given the low performance of the underlying investments in the CBP.

11-27-2024 | 09:42 AM

#149

EAFF95

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Joined: Oct 2018

Posts: 209

Likes: 28

Quote:

Originally Posted by FlyPurdue

I am surprised, because they get a 37% haircut on every dollar of that cash.

you don’t like how conservative the CBP is…make your PRAP more aggressive to make up the difference.

Make your PRAP more agressive... bud they give us 15 options to choose from and the most aggressive is the "total stock market".

The reduced cap on PRAP company contributions is crap for people in the younger years of their career. Currently, I can contribue $10850 of my own money and have 70k of my retirement in the stronger PRAP. If i contribute $10850 now I get $57k into my PRAP and $13k into essentially a bond fund. So make the difference up I need to contribue the $22k or whatever the IRS limit is. So more money out of my pocket to acheive the same thing for a minimal return on investment. At my age I'd rather have the extra $10k in liquidity than put it into a bond fund.

At least the spill into the HRA/AHA is useful to use and it's also tax leveraged.