Airline/Aviation News:
United AIP, American, FedEx AIP segway
Questions From The Flight Deck:
• What if age 67 passes? What is Hybrid retirement?
• https://www.nbcnews.com/news/amp/rcna95349
• The Senate still needs to pass its own version of the bill before the current authorization expires on Sept. 30.
1. Make an intentional decision - I.e., plan.
• Those that do not plan – life happens to them, and they get angry and bitter.
2. If you’re squarely “in the green” - Retire!
• 70% - 90%
3. If you LOVE flying – fly part time.
4. If you don’t love slipping the surely bonds BUT you’re on the financial bubble – Hybrid retire.
• Do NOT save in your retirement accounts!
• Additional $30k plus in your pocket for spending.
• Fly part-time – 1-2 trips per month.
• 2 years of NO retirement distributions:
• ~8% improvement or more income
• VSP ~ $1000 per month 5 years
• Social Security Strategy – wait till 70?
• Insurance against bad stock market
• $7mm left over versus $4mm
Meat of the Mission:
What is a cash balance plan?
• Cash Balance Plan Basics:
• Pension-like, Hybrid...DC versus DB.
• Big picture – a better way to save more money!
• Is it guaranteed or not? Fiduciary responsibility.
• Market-based plans are a type of cash balance plan where the account’s growth is tied to the actual return on plan assets. This contrasts with a traditional cash balance plan that typically has a fixed interest credit rate.
• Pros/Cons in relation to 401k, in relation to Pension.
• MBCBP – may underperform...
• Think annuity-like versus market like...what does the average investor get for investment returns?
• Flexible – unlike Non-Qualified “spill-over” plans
Differences at airlines? Decision points for FedEx, Delta, American etc.