Personal Retirement Funds

[de Pez]

Yes, that is what I am saying. I know it sucks to miss out on company matches with 401k's but use that as your motivation to get out of debt, FOREVER.

You stated that if you make obscene payments to pay down your debt it would take you 4-5 years to pay it off. Well, what if you pay half that? Then it's going to take you 10 years to pay that off. If you pay off your debt and pay it off NOW you can then use your biggest wealth building tool (your job) to start building a financial nest egg for the future.

I dont know your situation, but if you could somehow take on a second job and bring in some extra income then you could really bust your tail to get your debt paid off. Think about it. What if you paid $1,000 a month towards your debt and got another part time job bringing in another $1,000 a month.

With $2,000 a month going towards your debt you could have that loan knocked out in just over 2 years or so. You then have nothing in your way developiing a HUGE pile of cash for your future. I know it would suck for a few years trying to get all that paid off but you will be in a much much better financial position if your do so.

Most people are resolved to the fact that the will never get out of debt. Thats why people who seem rich are actually flat broke.

Being in debt is only a scam brought on by the banking industry and the credit card agencies that have been adopted by the general public. When you are deeply in debt you have no chance getting financially secure unless you break that cycle. Being in debt only means you are getting the banks wealthy.

This statement is not completely true. Getting out of debt is a primary goal. However, if your company matches ANY amount associated with your 401K, you owe it to yourself to deduct (or pay yourself) up to the amount that is being matched.
For example: If your company matches 50% up to your first 5% contributed, and you're making $100,000, then you contribute that 5% ($5000), because at the end of the year, with the company matching contribution of $2500, (50% of $5000 is $2500), then you have $7500 in pre-tax savings.. This is a return of 50% for the year!!! Even if you are unlucky enough to have interest rates of 24% on your credit card debt, this 50% return is twice that, and is not something that can be matched anywhere else in the investment industry. (with a few exceptions)

Get the matching money from your company first, THEN pay off your debt and start investing in an IRA and saving.

 

[smellthejeta]

This statement is not completely true. Getting out of debt is a primary goal. However, if your company matches ANY amount associated with your 401K, you owe it to yourself to deduct (or pay yourself) up to the amount that is being matched.
For example: If your company matches 50% up to your first 5% contributed, and you're making $100,000, then you contribute that 5% ($5000), because at the end of the year, with the company matching contribution of $2500, (50% of $5000 is $2500), then you have $7500 in pre-tax savings.. This is a return of 50% for the year!!! Even if you are unlucky enough to have interest rates of 24% on your credit card debt, this 50% return is twice that, and is not something that can be matched anywhere else in the investment industry. (with a few exceptions)

Get the matching money from your company first, THEN pay off your debt and start investing in an IRA and saving.

I have a high yield savings account paying 4.0%. I have some student loan debt at 2.825 percent, which will go down to 1.825% in a couple of years. I actually come out ahead by putting money in the online bank and NOT paying my student loans off early. The other thing with saving money is that say I pay this loan off early, have no cash on hand, and have a $2000 car repair bill. Well, car repair bill goes on a credit card at 19.00% apr. That just got real expensive, all because I was in a hurry to get rid of a loan at 7 or 8 %. Paying off high interest credit cards make sense, because after all, if you have an emergency and need to tap the credit line, you can. But paying other loans off at the expense of savings (or retirement or whatever) can really screw you over down the line.

 

[Draginass]

Regarding pensions. You need to do what the executives do. You need to get as much as you can just as fast as you can and screw everybody else. You need to get the money in YOUR control and away from the CFOs who will use it to fund their own "BK proof" severance/separation/retirement bonuses.

Remember, your just a "little person". American corporate executives expect you to survive on Social Security in your retirement while they sell you overpriced drugs from drug companies they sit on the BOD for. If you're lucky, you'll work for a company like Walmart that gives classes on how to exploit Medicaid, WIC, and welfare in order to avoid furnishing benefits or liveable wages to their workers.

Look at the executives at the company you work for. They ARE NOT your friends and they are driving this country into ruin.

 

[kingairyahoo]

...as much as id like to continue the college degree debate...id rather get some links to what you guys are using for a roth!?!

 

[shamrock]

id rather get some links to what you guys are using for a roth!?!

Fund #1
Fund #2
Fund #3

This is what I have in my Roth. They supplement and/or fill holes in my 401k.

 

[Dangerkitty]

Danger cat again I do not follow. What does a college degree have to do with safety at the 121 air carrier level? Are you sure you got your money's worth in getting your degree?

Where did I state anywhere that having a college degree increases the saftey at the 121 carrier level. Yes pilotyip I got my money's worth in college. It just looks like you dont have any freaking reading comprehension.

First of all PilotYip if you will re-read what you posted you will realize that your logic is flawed and that you are completely incorrect. My response was a technique called: "Demonstating absurdity by being absurd."

Furthermore, since you like to start slinging the insults I have a few more comments to make.

You state that in all you career you have never made more than $100K. Well before I hit the age of 30 I made more than $100K flying airplanes. Within 2 years after being furloughed from American Airlines I was back over the six figure mark. For someone who likes to tell people not to get a college degree you sure make yourself look like an idiot. You have never made more than six figures flying airplanes and you want to brag about that? I myself have made a goal to double my salary every 5 years. Well I have done so up until this point. What have you done but squirm in mediocrity?

If you wanna tell glassy eyed wanna be pilots that they shouldn't get a college degree then go ahead. But you are a terrible example of a sucessful pilot. You are flying (or sitting behind a desk) for less than six figures and working for a company that is constantly in financial trouble. Either you are a glutton for punishment, lazy, or have skeletons in your closet and are afraid to move on.

Sorry Pilotyip, but you have very little credibility here and for you to attack me makes you look more like a moron. I have eclipsed you meager "career" in just a few short years and I continue to have better QOL and make more cash than you ever will. Sorry you have a problem with that, but resulting to insults only makes you look like a bitter old man.

BTW, some of the pilots that fly for USAJet dont think all that highly of you. So you might wanna just pipe down a tad and fly that desk a little more.
I guess that's why they wont let you upgrade to the DC-9? Am I correct?

 

[Dangerkitty]

This statement is not completely true. Getting out of debt is a primary goal. However, if your company matches ANY amount associated with your 401K, you owe it to yourself to deduct (or pay yourself) up to the amount that is being matched.
For example: If your company matches 50% up to your first 5% contributed, and you're making $100,000, then you contribute that 5% ($5000), because at the end of the year, with the company matching contribution of $2500, (50% of $5000 is $2500), then you have $7500 in pre-tax savings.. This is a return of 50% for the year!!! Even if you are unlucky enough to have interest rates of 24% on your credit card debt, this 50% return is twice that, and is not something that can be matched anywhere else in the investment industry. (with a few exceptions)

Get the matching money from your company first, THEN pay off your debt and start investing in an IRA and saving.

I totally disagree but do what you wanna do.

I have heard every excuse in the book for people doing things financially that they wanna do. They make excuses for leases, credit card debt, unsecured loan debt, home equity loan debt, etc etc etc.

A 401k match should only be made when all debt is paid off.

 

[psysicx]

Make sure you start taking out money at little bits so that it doesn't get taxed as much. What I mean is, if you start deducting money at 75 you have to take out more which causes you to loose more to taxes then if you would have done it at 50.

 

[pilotyip]

Dangercat you are right and the all knowing one of aviation, you have figured out my problem and I have to admit the FAA terminated my DC-9 flying. Some 121 rule I broke in Sept of 2003. They told me I am no longer qualifed to fly the DC-9.
Also the safety thing came from your post about Flight Attendants flying the airplane, which I am not sure how you brought that in.
You are obviously a much better man and pilot than I am and I will never argue that with someone as knowledgeable as you. I am awed to be on the same post with you.

 

[pilotyip]

oh I forgot

I forgot to add I turned 60 in Sept of 2003. However I saw a post here that they are going to right that wrong and let me fly the DC-9 again, that is of course if the senate goes along with congress.