WeAAsles
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Our term life here is already 1 times yearly pay free. If you want more it's a few dollars but you have to send in a medical disclaimer.
JCBA Negotiations and updates for AA Fleet
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Our term life here is already 1 times yearly pay free. If you want more it's a few dollars but you have to send in a medical disclaimer.
You are correct Traymark. And I would like to pass on this little note. Tonight on the Dave Ramsey radio show a person called in and asked if he should take a mandatory 8% employee contribution to a pension fund, OR, go with the 401K option with a 6% match by the co. Dave said no brainer, go the 401K route. Number one reason was because of controllability by the employee. With the pensions no employee has ANY control what-so-ever-period. With the 401K the employee has 100% control of when they are in or out. Which is exactly what I have been saying for some time now. Anyone out here that tells you you don't have 100% control of your 401K accounts is a complete moron and does not know what they are talking about. Ask any financial advisor and 90% of all the good ones will tell you to go with the 401K over the pension options. Ramsey also said that a very close second reason is because of the failure rate of the pensions in the past and that the majority of the existing pensions (other than CEO's pensions) are underfunded and more than likely will in fact end up with the government long before the retirement age and frozen. A very bad history with pensions. Just wanted to pass that on to you guys from a professional retirement advisor, good luck...
NYer
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It's just that there will be a lot of changes and it doesn't seem either group is open to changes. It seems there will be many instances where the changes will be labeled as "concessions" and that swell will grow.
The expectations that were set was "industry leading," but the meaning to that was not sufficiently explained, and the proper expectations have not been set so the content of a JCBA will be open to everyone's interpretation and we all can see how that varies.
WeAAsles
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So I have you and this Radio guy say I have 100% control on getting in or out of my 401k if there's a collapse on the horizon that I'm forecasting say a week or two from now? Ok I'm 52 can I draw all my money out of my Super Saver account and put it in the bank to ride out the storm? No. Sure I can change investments to the lowest risk areas I can find out there but my investments are still going to be under siege.
You want the truth about smart investing. It's NOT sticking all your eggs in one basket. It's about having multiple eggs in multiple baskets.
#1 having of course a good job that pays you well so you can afford to make investments in your future.
#2 It's about not striving to constantly live beyond your means and wanting to be J Paul Getty and buy all the shiny objects you can find out there.
#3 Big one. Pay attention to what's going on around you. Read future forecasts for what might be coming down the pipe for items you're invested in (Like the Airline industry you work in)
#4 Diversify where you allocate your investments. Stocks, Bonds, Pensions, Property, Automobiles and their Maintenance, Women (Yes a woman without a job can be expensive), Family, Children, Schools, Grandchildren, Loans, Credit cards (Keep those utilizations low, and other areas you can think of where you can spend your money wisely)
#5 Plan how you expect to live when you do retire. Do you need to keep that big house you bought to raise your family? Can you move to something smaller and cheaper and sock away some great Capital Gains on the old big house? Or are you going to keep the emotional attachment? Are you willing to move somewhere where the cost of living is cheaper?
Oh and nothing personal to popular Radio show and TV guys but don't listen to popular Radio show and TV guys. The only people who popular Radio show and TV guys care about are themselves and the people who pay them. Not you.
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chilokie1
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#3 The Big One..........I believe that is exactly what many of us are doing! We see the IAMPF as worst path, not because of spite but because the numbers do not lie.
No offense but Dave Ramsey has not been on the radio in virtually every radio market in the country for as long as I can remember by giving bad advice.
Good post.
You can keep doing what you are doing,
Or
You can listen to people who have a history at succeeding,
I choose the latter.
You don't think that his mutual fund interest rate projections are a bit high? 10/11% is almost Bernie Madoff high. While I do think Ramsey is sincere he has many critics I also know of other investment gurus who had syndicated radio and TV shows who wound up down in the Caymans eluding the US marshals. Weez remember Sonny Bloch and Bill Bresnan
Jester
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I have probably listened to more Dave Ramsey than I should admit to doing, and I probably agree with him 90% of the time. I think his greatest advice would be in the avoidance debt and the focus to eliminate it quickly from people's finances.
That being said, if I can get 0% financing, I'll take it instead of paying cash, while Ramsey hates even no interest financing. He advocates a ZERO credit score (no history of credit), even though he admits it cost him more at times, as he must put down more on security deposits or prepay services as with cell phones, and makes it more difficult for people to obtain a home mortgage.
His expected returns on mutual funds are historically high, especially as he doesn't account for risk in his own personal portfolio including aggressive growth international funds. Sure maybe he is outperforming the S&P 500, but at what level of risk?
Like many wealthy people he lost a true sense how average people live, and it isn't $200,000 household incomes who give their "Debt Free Screams" on his show by paying off $150,000 in 3 years, in part by selling their vacation home.
He does not advocate matching retirement dates with investment risks in retirement portfolios, which usually means preservation of capital the shorter the time horizon. Ramsey has the benefit of multiple sources of income from rental properties, book sales, etc. to ride out any bear markets. And yet, if people call as how to invest money they plan to use for college tuition or use to build a house in a couple years, he tells them to place it in bank CDs as the stock market has too many potential swings in the short-term.
To his credit, Ramsey has a "path" or steps by which people could follow as for many people, they do not know where to start by focusing on debt and ratios of income to housing, retirement savings, cars, etc.
Jester I listen to him when the Mets are not playing (same station) if you listen to him none of us who work fleet would ever have a new car or house for that matter and I'm not into rice and beans and beans and rice
WeAAsles
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Chil we don't have all the numbers though. Like I said have those IAMPF future liabilities leveled off? If they have then there's a "possibility" the fund doesn't fall out of the green and have to make any cuts in the future? Are the industries where the IAMPF holds members adding employees to their business and are they in long term growth mode forecast?
Traymark said yesterday will the TWU conduct its own individual audit of the trust? I'd like to obviously hope they can and do?
Oh and are those changes they've made after the DOL complaint going to be sufficient for them to invest more prudently without any more future drama in that area? (IAMPF guys. That is YOUR money not anyone's personal slush fund, kapeesh.)
"I" still have lots of questions left to be answered when the time "really" comes that I want/need answers.
WeAAsles
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