Fractionals retirement plans

[BengalsFan]

I realize a lot of people are going to comment about retirements and flying positions, but I'd just like to know what people think about the different plans, so if we could hold off on the "you'll never retire from a flying position" comments, that would be greatly appreciated.

That being said, how good are the retirement plans?

FlexJet has a 1% A plan... what would that be after a 20 year career there?

Flex also matches up to 6% on the 401k... is this an overall better plan than NetJets with their 401k match of 50c/$1, up to 15%?

And obviously Fight Options and Citation Shares don't even qualify to debate since they are both significantly worse than either of these 2 options.

I'm really interested in peoples opinions on this, especially what the Flex A plan potentially could be worth.

Thanks

 

[cush]

Flex also matches up to 6% on the 401k... is this an overall better plan than NetJets with their 401k match of 50c/$1, up to 15%?

7.5% is better than 6%.

 

[BengalsFan]

Cush... yes 7.5% is better than 6%... but Flex also has a 1% A plan that goes with their 6% match to a 401k... so does this additional 1% in Flex's A plan make it better than NetJets 7.5 in only a 401k match? Basically I am wondering what Flex's 1% A plan will equate to when you retire in 20-30years?

 

[vixin]

1% x Final average earnings( lets say $100,000) x years of service= amount of yearly retirement.

So 1% x $100,000 x 30 years= $30,000 per year until you die.

They also match 20% on stock purchased through the employee stock purchase plan. You buy $100 worth they buy $20 for you and put it into your account. You can elect 0-20% of your paycheck for stock.

 

[gunfyter]

That sounds better than NJA's 401K

 

[BengalsFan]

Vixin

Thank you for the educational response!

Does flex have a lump sum payment option?

 

[Grizz]

NetJets 401(k) is 50% up to the legal limit of employee contribution. In 2005, that was $14000. The 15% doesn't apply anymore. I just got my "true-up" match taking it to $7000.

The one thing you must remember about the Flex vs NetJets plan is that I own mine once I'm fully vested. A defined benefit plan like Flex offers with their 1% can be taken away at any time. Look at all the un-funded plans in existance in the airline business if you have any doubts.

 

[gunfyter]

I did not forget that Griz. No doubt it would be taken away before I could retire. Its happening everywhere.

 

[Geronimo4497]

Get the cash, convert it to krugs, and bury it in the back yard. They can't touch that (wait, can they??)...........

For our little fractional, I'm very happy with the 401K. I figure 50% return on my money is not bad for one year plus (minus) whatever I make (lose) with the funds. I didn't know that Netjets was that good a deal, wow. How long to become fully vested at Netjets?

 

[vixin]

The lump sum is only done when the amount is below a certain dollar figure.