RTD Guy's let's hear how life is

fedex_rtd

Well-Known Member
Neither is the traditional. I had 25 years in the traditional and will get about $2000 a month, depending on how I take it. I can't live on 2k unless I want so sleep in a tent like Tex. I wasted several years after 25 in the Traditional because that was the max years. If I had 25 more years in my Portable, I imagine I would be sitting on 300k, maybe more. That is drawing 4% annually. Personally I would rather have 300k drawing 4% than getting $2000 a month.

Just to clarify Old Fu.ck does NOT have $300,000 in a portable account. He is trying to muddy the waters once again by trying to support the companies decision to kill the traditional pension plan...a plan that will/would pay you much more over your golden years than a portable cash plan would ever pay out.

Just remember you will have to pay tax on ALL the money in the portable pension plan once you take it out at the normal tax rate, both federal and state.
 

Oldfart

Well-Known Member
Just to clarify Old :censored2:.ck does NOT have $300,000 in a portable account. He is trying to muddy the waters once again by trying to support the companies decision to kill the traditional pension plan...a plan that will/would pay you much more over your golden years than a portable cash plan would ever pay out.

Just remember you will have to pay tax on ALL the money in the portable pension plan once you take it out at the normal tax rate, both federal and state.
And you dont pay taxes on the Traditional? Havent heard that. Who says you take the Portable lump sum. You dont even have to take it till you are 69 1\2. Let it grow tax free
 

Oldfart

Well-Known Member
Isn't 4% of $300k $12k annually or $1000 a month? How's that better than $2000 a month? At the rate of increase most couriers will never see $300k in their portable pension. Probably won't see $200k unless they move into management and stay until their late 60's.
Did you forget about the 300k principle?
 

Oldfart

Well-Known Member
Just to clarify Old :censored2:.ck does NOT have $300,000 in a portable account. He is trying to muddy the waters once again by trying to support the companies decision to kill the traditional pension plan...a plan that will/would pay you much more over your golden years than a portable cash plan would ever pay out.

Just remember you will have to pay tax on ALL the money in the portable pension plan once you take it out at the normal tax rate, both federal and state.
Where did I say I did have 300k?
 

vantexan

Well-Known Member
Did you forget about the 300k principle?
If it's in the plan you aren't touching the principle or the interest. Take the principle out of the plan and you have to put it at risk to get 4% these days, and will still have it tied up and not getting access to the $300k. But it's a moot point because for much of your FedEx career the percentage deposited annually won't build up much principle. You really have to move up to senior manager level or above and work a long time to have anything. The portable will never pay what the traditional did which is exactly why they went to it. And you don't have the option to leave with a pension at 55. The company really doesn't want a lot of topped out employees anyways and is counting on worn out 15 year couriers eyeing that portable pension lump sum and deciding to take it and go do something else. Person may start at 22, but will have to work until at least 67 and hope SS is still there and have to save religiously in their 401k which means no long weekends going to NASCAR and football games. If they spend their income having a life they'll have a very poor retirement. And don't tell me otherwise because you have a full traditional pension and they won't.
 

vantexan

Well-Known Member
And you dont pay taxes on the Traditional? Havent heard that. Who says you take the Portable lump sum. You dont even have to take it till you are 69 1\2. Let it grow tax free
At some point you'll take it and pay taxes. Not sure if you can roll the lump sum into an IRA, probably can. If you take an annuity you'll pay taxes. At any rate most likely if you put in 30-40 years a courier is looking at $120k to maybe $160k. Possibly more depending on if inflation upped his income but then the money will be worth less too. If a courier does have $300k in say 35 years it will be worth a lot less than what it is today. In a traditional plan they take your 5 highest paid years which for most would be in their last 5 years with steady raises. If you put in 25 years you'll get 50% of your 5 year average. You'll do much better than a lump sum paying low interest unless it's a very large lump sum.
 

fedex_rtd

Well-Known Member
Back on subject now that we have proven once again that old fart uses fake facts and figures.

Being an RTD in my opinion is the best job at FedEx Express, but just like the rest of the company we are having a hard time finding “quality” employees.
 

Oldfart

Well-Known Member
Back on subject now that we have proven once again that old fart uses fake facts and figures.

Being an RTD in my opinion is the best job at FedEx Express, but just like the rest of the company we are having a hard time finding “quality” employees.
Show me fake facts and figures. Some amounts were used as examples. Others are sure fire facts.
 

Oldfart

Well-Known Member
Come on Earl. You already said if you had gotten into the PP earlier that you would have more money. Instead you waited.
The Portable wasn't even offered until 2003 or 2004. Kind of hard to be invested in a retirement plan 40 something years ago that hadn't been offered yet. Maybe you can explain how that is possible.
 

Oldfart

Well-Known Member
At some point you'll take it and pay taxes. Not sure if you can roll the lump sum into an IRA, probably can. If you take an annuity you'll pay taxes. At any rate most likely if you put in 30-40 years a courier is looking at $120k to maybe $160k. Possibly more depending on if inflation upped his income but then the money will be worth less too. If a courier does have $300k in say 35 years it will be worth a lot less than what it is today. In a traditional plan they take your 5 highest paid years which for most would be in their last 5 years with steady raises. If you put in 25 years you'll get 50% of your 5 year average. You'll do much better than a lump sum paying low interest unless it's a very large lump sum.
Your math is all wrong. Couriers that got in the Portable from day 1 are pushing 100k or many are already there now. If you got in it from day 1 you were most likely topped out. If I had 25 more years of Portable time, I would have way more than 160k. That is why I say if I had the opportunity to be in the Portable over 40 years ago, I believe I would be better off. I believe 300k would be possible with that many years in the plan. 300k drawing 4% and pulling out the 2k per month my Traditional is gonna pay me would last about 18 years. I would take that over the 2k the Traditional is gonna pay, even if the Traditional might last longer. If I don't make the 18 years before the Portable runs out, my family gets it. If my wife passes on before me, NOBODY gets my Traditional.

Operational just can't comprehend the Portable wasn't around in the 70's. Bummer
 

Oldfart

Well-Known Member
And once again, your reading comprehension fails you. I clearly said that you can take your Portable Pension with you if you quit the company regardless of age. If one chooses to retire from FedEx and take a monthly payment, they have to be of a certain age.
You do not have to be a certain age to take your Portable payments as far as Fedex is concerned. The IRS cares but Fedex will give you the money no matter how old you are.
 
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