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Is The PPP Going Away?
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<blockquote data-quote="vantexan" data-source="post: 1081502" data-attributes="member: 24302"><p>Pure speculation, but if the PPP goes away I've got a guess why. When FedEx started it in mid-2008 you could get 7.5%+ interest on a 5 year CD. They probably felt that the 1% quarterly interest they would pay on PPP accounts would easily be met by the interest on the money they set aside for future PPP payouts(and they'd make a little extra on the side too). It's very difficult to make 4% on any income generating investments today except for riskier junk bonds. In spite of the fact they are saving serious money with the PPP over the traditional pension they probably aren't thrilled that they have to take away from profits to pay some, if not most, of the interest. And as the PPP accounts grow so does the interest paid. If we go to strictly 401k's not only will their match be less than the PPP annual payment, but any growth in the account will depend on market performance, not FedEx paying interest. Pure speculation, but if the PPP ends I suspect this is a major reason why. And in today's economy they can just tell us with a smile we can take it or leave it.</p></blockquote><p></p>
[QUOTE="vantexan, post: 1081502, member: 24302"] Pure speculation, but if the PPP goes away I've got a guess why. When FedEx started it in mid-2008 you could get 7.5%+ interest on a 5 year CD. They probably felt that the 1% quarterly interest they would pay on PPP accounts would easily be met by the interest on the money they set aside for future PPP payouts(and they'd make a little extra on the side too). It's very difficult to make 4% on any income generating investments today except for riskier junk bonds. In spite of the fact they are saving serious money with the PPP over the traditional pension they probably aren't thrilled that they have to take away from profits to pay some, if not most, of the interest. And as the PPP accounts grow so does the interest paid. If we go to strictly 401k's not only will their match be less than the PPP annual payment, but any growth in the account will depend on market performance, not FedEx paying interest. Pure speculation, but if the PPP ends I suspect this is a major reason why. And in today's economy they can just tell us with a smile we can take it or leave it. [/QUOTE]
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