Unfortunately it's not going to happen
Pension deductions?
- Thread starter Theoneandonly24
- Start date
FrigidFTSup
Resident Suit
And the members the union is supposed to be supporting will suffer.
Brownslave688
You want a toe? I can get you a toe.
That's saying the amount invested doesn't go up. Which it does every contract. And 6% is conservative. Which is probably best in this scenario.
The pension is based on a 8% return
I voted no ...like that did a lot of good
Brownslave688
You want a toe? I can get you a toe.
35 years at 8% growth gives you 3.7 million. Man I love compounding intrest.
Where did the rest of the money go?
FrigidFTSup
Resident Suit
Don't ask
Brownslave688
You want a toe? I can get you a toe.
"Administrative costs"
My ass...
Brownslave688
You want a toe? I can get you a toe.
Those private jets and surf and turf meals ain't gonna pay for themselves.
I know
Trust me...Brown wants us out
Brownslave688
You want a toe? I can get you a toe.
The funny part to me is the union will tell us we are overpaid but not a chance in hell they are giving up that health and welfare money.
No schitz
104Feeder
Phoenix Feeder
I don't work for Southwest Administrators but I will do my best later today. I only have contracts from 1990 or so. Everything I write about only pertains to the WCT Pension Plan
First we have to agree on a couple of facts:
What BS is comparing is apples to oranges.
Right now you can invest $18,500 annually in your 401k, either tax deferred or taxed(Roth) and in addition $20,800 is invested for you tax deferred in the pension (rate since 2013, not since 1986. All compensible started in 2008 or so, previously you could not attain 2080 hrs full contribution.)
There are some general tax concerns BS is not addressing.
Receiving the $20,800 as wages or other payment, assuming you worked 2080 hrs/yr, would push you into the 28% tax bracket (head of household) or force you to make your 401k tax deferred to reduce taxable income.
I'm sure there are questionable tax avoidance schemes but c'mon now how long will it be before some idiot suggests declaring themselves a "free inhabitant".
Investing in a tax deferred 401k is generally considered to be $.68 for every dollar invested vs. dollar for dollar in a Roth because of the tax implications. Sadly, only 1 in 5 Americans choose the Roth option.
I'm not a tax accountant but when I did mine I made too much to have any tax savings by opening an IRA.
Pensions have a fiduciary responsibility and so invest conservatively, allowing you to assume more risk in your 401k than most would do. You could easily bring yourself to 100% of your pre-retirement income by having two piles of money to pull from, plus SS later in life.
We have PEER 80 for full time, so someone starting at 18 could retire at age 49 while 401k distributions can't start until age 59.5 without penalty. Our early retiree has 10.5 years for his second pile of money to grow.
401k participation rates are dismal, even when free money in the form of an employer match is on the table. It is unrealistic to think it would rise if there were a sudden windfall.
I personally know of one driver who has all his 401k money in the stable value fund. Most people do not have a clue about how to invest their money for retirement, if they save anything at all, which is why there is a crisis. Only 7% of people who have an IRA or Roth IRA are max contributors.
The pension allows you to take a reduced payout so your spouse receives your pension for life should you die. There are also disability retirement benefits.
People tend to use their 401k's as a piggy bank, smashing it to borrow to buy a home. 2/3 tapping it when out of work especially people in their 40's and 50's, leaving less than $2000 in their accounts on average. Your pension can't be raided for life's ups n downs but will be there with a stable, reliable benefit for life.
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You could have saved $2000/yr from age 16 to 21, invested it in stocks, and have $1 million at age 65. Know anybody who has done that? Me either. To keep that million you could withdraw 4% a year, $40,000 and be ahead of most Americans in retirement. Our pension pays up to $20k more and you could retire as early as age 49, with 16 years of withdrawals before that million came around. I'm sure the whiz kids on here could beat either of those numbers, or maybe the market crashes the day they go to move their money and 20+% of their money vanishes. Or maybe someone spends $20k a year on Powerball tickets and wins one of those Billion dollar jackpots making all of this look like chump change. Every full time driver here at top pay should be in the $100k club. The median income is a less than half that figure in my State leaving you more than double our pension contributions to invest to your hearts content. The exceptions prove the rule: our pension is a great deal.
Brownslave688
You want a toe? I can get you a toe.
The company putting the money directly into 401k would have no bearing on your tax bracket whatsoever.
It also wouldn't effect the money you can put in personally. So your contribution plus the companies could be around 40k annually into a 401k.
It also wouldn't effect the money you can put in personally. So your contribution plus the companies could be around 40k annually into a 401k.
Back in the 80's the contributions were way less than what top freight put in.
