Personal Retirement Funds

[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.

 

[de Pez]

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.

I am not concerned with your opinion...Everyone has an opinion..

If you have the opportunity to receive a guaranteed 50% return on an investment, you do it, then you focus on paying off debt...Do what you as an individual want, just don't ruin the amazing opportunity for compounding interest associated with free (company) money with a simplistic view of economics...Pay yourself first, particularly when you have a 50%return, then do whatever you wish with the money....Anything less is foolish..

 

[typhoonpilot]

Anybody who thinks that investing in 401Ks and IRAs is the way to a comfortable retirement is dreaming. The mutual fund industry suckers people into believing all the hype and fails to perform. I would never put all my eggs in that basket. Don't listen to Suze Orman and the other self-professed gurus out there.

A portion of investments should certainly be in stocks, but don't count on them just like you now know not to count on pensions. The USA could easily have a Japanese style market meltdown and you could stand still in your investment accounts for 10 to 20 years.

Never give your money to someone else to invest for you. Always keep it in your name. That means to keep mutual funds and trading accounts in your name and not to invest in hair-brained get rich quick schemes.

The recent run-up in property prices makes investing in property a bit risky right now, but look to buy after the correction. Your primary residence is your single best investment. Once you have that look for a decent rental property. Your long term returns should certainly be higher than from the stock market.

P.S.

Marry a rich woman, the single best investment a man can make.

 

[redd]

I knew of a guy who invested a sizable amount, about $100,000 in the stock market durring the .com era, and made a 400% return on investment. That takes guts as well as perhaps some inside information to boot.

I've made some great money on well chosen stocks in the past, but I think the market operates in waves too. Like Mar and others, I agree that real estate as an investment, especially in a sellers market area that's growing, is a good idea. By the way Mar, it's good to see you posting again, maybe some of the changes on the board have drawn you out lately?

 

[psysicx]

Typhoon I'm confused. The reason people invest in Mutual Funds is so there eggs are not in one basket.

 

[typhoonpilot]

Typhoon I'm confused. The reason people invest in Mutual Funds is so there eggs are not in one basket.

One basket, as in the stock market.

Redd: For every one guy you find who made a 400% return, I can find ten who lost more than 50%. Putting all you money in one stock issue is just plain stupid. The most you should ever put in one issue is 2.5% of your total investment funds. I've learned that the hard way.


TP

 

[mar]

I do what I can...

By the way Mar, it's good to see you posting again, maybe some of the changes on the board have drawn you out lately?

Yes and no. The frequency of my posting increases to the square of my boredom.

To me real estate is almost always a good investment assuming you don't build on an earthquake fault, a flood plain and no one puts a nuclear waste facility in your backyard.

And personally, I shy away from the stock market because it just looks too much like Vegas to me and I hate Vegas. I've had all of the accounting, finance and economic classes in college and I just can't get away from the feeling that it's a big poker game.

I agree with Dangerkitty it's useless to save while paying off your debt. That's like bailing water out of a sinking boat. First, stop the leak, then bail...or maybe I have my metaphor backwards.

But I confess, I'm one step away from keeping my money in my mattress. I don't trust anyone.

Good luck.

 

[Dangerkitty]

Anybody who thinks that investing in 401Ks and IRAs is the way to a comfortable retirement is dreaming. The mutual fund industry suckers people into believing all the hype and fails to perform. I would never put all my eggs in that basket. Don't listen to Suze Orman and the other self-professed gurus out there.

A portion of investments should certainly be in stocks, but don't count on them just like you now know not to count on pensions. The USA could easily have a Japanese style market meltdown and you could stand still in your investment accounts for 10 to 20 years.

Never give your money to someone else to invest for you. Always keep it in your name. That means to keep mutual funds and trading accounts in your name and not to invest in hair-brained get rich quick schemes.

The recent run-up in property prices makes investing in property a bit risky right now, but look to buy after the correction. Your primary residence is your single best investment. Once you have that look for a decent rental property. Your long term returns should certainly be higher than from the stock market.

P.S.

Marry a rich woman, the single best investment a man can make.

When it comes to managed funds I agree with you 100%. Thats why I invest in unmanaged blue chip growth stock INDEX mutual funds.

 

[JediNein]

I agree with Dangerkitty it's useless to save while paying off your debt.

1. Visit http://www.debthelp.com
2. Read "Richest Man in Babylon"

I pay myself 10% of any money I receive. This is money going towards my future. It's my money, I earned it, and I finally have something to show for it. Right now it's in an airline's credit union savings account, making interest at the rate of inflation. That's a little bit better than the sock under the mattress. It doesn't matter if I find a nickel on the sidewalk or get a check from working, 10% goes to myself. No pensions, social security, or poor folks checks required for me when I retire.

I pay my previous spending, debts, with 20% of whatever I receive. That's all they get, 20%. I didn't have to listen to them whine, complain, groan, and moan about only getting 20% of my income -- I ceased all creditors. That was 6 years ago when I had no income and little possibility of getting one. The credit card numbers doubled and tripled, one even claimed I owed 'em 4x the original amount. Now they're back to just the amount owed when I ceased 'em, claiming 50% of that amount would make 'em happy. In one year, they get deleted from my credit history. Two years ago they lost the right to pursue me in court due to the state's statue of limitations. Of course, the court battle is only fought if they think you have something to give up, like assets. The student loans go away in 20 years if I can't repay all of them, locked in with a fixed 3% interest rate.

Then 30% goes towards an emergency fund. I needed the fund last year. I'm almost set if I need it this year. When the fund is full, the rest will go into short and long-term savings and investments.

I live on 50% of the rest. I deal with roommates :uzi: , no social life, a car with 123,000 miles on it, and no IPOD or other toys.

But I'm not broke. I'm working for something. I'm no longer living paycheck-to-paycheck, unable to get ahead.

My income recently quadrupled. I paid myself a bonus (out of the 30%) and spent it on a toy -- still have 10% coming right to me to not spend on toys today.

Good luck!
Jedi Nein

 

[JohnDoe]

quote:
"In one year, they get deleted from my credit history. Two years ago they lost the right to pursue me in court due to the state's statue of limitations. Of course, the court battle is only fought if they think you have something to give up, like assets. The student loans go away in 20 years if I can't repay all of them, locked in with a fixed 3% interest rate."



Congratulations,
You ran up debt on your own, then weaseled out of paying for it.....how proud you must be.

 

[westwind]

The Roth IRA sounds like a great deal, but what if, in the future, some "crisis" arises and the powers that be, feel they HAVE to tax the withdrawals in order to deal with the "crisis", real or otherwise? I just don't trust 'em to keep up their end of the bargain. Regular IRAs and 401ks for me. "A bird in the hand is worth two in the bush" YMMV