Good news for pilots - retirement age

Robert M. Gary wrote:
Greg Farris wrote:
In article .com,
says...
I was referring to enhancement of the lives and careers of pilots - I think
if you ask practicing pilots, even young ones, most would feel that the 60 rule
is unwelcome.

If that were true, the union wouldn't have fought over this internally
for decades. Remember, only 1/2 the members are old.

According to the news, slightly over half the pilots oppose the age
change. All the union reps on the FAA advisory committee oppose the
rule change. And apparently the pilots who do desire the increase in
age, don't _want_ to keep working, but _have_ to keep working because
of pension decreases.

All the financial, union and political stuff just obscures the fact
that it's not really a physical issue these days.

Regards, Kev

Newps wrote:


Robert M. Gary wrote:

Newps wrote:

Jay Honeck wrote:
My mandatory retirement is age 56. I am eligible at 49 when I will have
25 years. There are no full pensions anymore in the government. Better
read up. The Government started a new retirement system in the mid
80's. There aren't many people left on the old system. The old system
was a pension only system, they did not pay into social security and did
not receive benefits unless they got their 40 quarters somewhere else.
They received 50% of their highest three years of salary as their
retirement. Now the retirement is much more employee financed. I also
pay into social security. I also put the IRS max of $14K this year into
my 401K. My pension will be less than the 50% the other workers got.



You are a gov't employee and can contribute to a 401K?


We call it TSP, for Thrift Savings Plan, but it's essentially the same
as your 401k. I can contribute any amount up to the IRS max which I
believe is $14K this year, goes up about $500 a year, same as you. The
Government contributes another 5% of my base pay.
TSP this year is $15,500. Since I just started with the govt. I get 0%
from them. After a year I think I might get 3%. I'm also in the govt.
pension which according to most is worth almost nothing.

Margy

Margy Natalie wrote:


We call it TSP, for Thrift Savings Plan, but it's essentially the same
as your 401k. I can contribute any amount up to the IRS max which I
believe is $14K this year, goes up about $500 a year, same as you.
The Government contributes another 5% of my base pay.



TSP this year is $15,500. Since I just started with the govt. I get 0%
from them.


If you're a Fed then you have to wait either 6 months or a year. I was
putting in $575 a paycheck into the TSP in 2006. I bumped it to $650
for this year. That way my contributions automatically stop by December
when the money comes in handy for Christmas.



After a year I think I might get 3%.

Once you're eligible the plan is the same for everybody. You put in 5%
and the government matches it, 5% is the most they put in. You can go
up to the IRS max.




I'm also in the govt.
pension which according to most is worth almost nothing.


At 25 years you would get a pension of about 39% of your high three
years base pay. The formula is 1.7% per year for the first 20 then 1%
for every year after that. I can go at age 49 with 25 years. If I stay
until mandatory retirement at 56 that would give me a 46% pension. I
have no desire to stay that long and do not plan to. I want out ASAP.

"Margy Natalie" wrote

TSP this year is $15,500. Since I just started with the govt. I get 0%
from them. After a year I think I might get 3%. I'm also in the govt.
pension which according to most is worth almost nothing.

So, how are things shaking out with your new position? Still enjoying going
to work, I would imagine. :-)
--
Jim in NC

On Fri, 26 Jan 2007 19:44:19 -0700, Newps wrote:

Once you're eligible the plan is the same for everybody. You put in 5%
and the government matches it, 5% is the most they put in. You can go
up to the IRS max.


Be aware that to maximize the match in a many retirement plans you
need to spread out your contributions over the entire year of
paychecks.

I'm amazed at how many people who max out their matched retirement
plans by September (or even earlier!) don't realize they're leaving at
least 25% of the match on the table each year.

B A R R Y wrote:


I'm amazed at how many people who max out their matched retirement
plans by September (or even earlier!) don't realize they're leaving at
least 25% of the match on the table each year.


That's done by design. The faster you get your money into a rising
market the more money you make. For every paycheck that I forgo the
match I leave $140 on the table. I'm betting I can do better than that.
In the long run you will.

On Sat, 27 Jan 2007 14:27:59 -0700, Newps wrote:


That's done by design. The faster you get your money into a rising
market the more money you make.

A.) Dollar cost averaging has a way of evening some of those rises
out. Stock and bond markets don't always rise significantly from
week to week. Sometimes they even decline over a week or two.

B.) My match is a lot more than $140. The match is also "free
money", tax deferred, that works hard over the long term for me.

B A R R Y wrote:


A.) Dollar cost averaging has a way of evening some of those rises
out. Stock and bond markets don't always rise significantly from
week to week. Sometimes they even decline over a week or two.

B.) My match is a lot more than $140. The match is also "free
money", tax deferred, that works hard over the long term for me.


The only thing that matters is what gets you the most money in the end.

On Sat, 27 Jan 2007 15:01:33 -0700, Newps wrote:



The only thing that matters is what gets you the most money in the end.

Amen, Brother!

Newps wrote:


Margy Natalie wrote:


We call it TSP, for Thrift Savings Plan, but it's essentially the
same as your 401k. I can contribute any amount up to the IRS max
which I believe is $14K this year, goes up about $500 a year, same as
you. The Government contributes another 5% of my base pay.




TSP this year is $15,500. Since I just started with the govt. I get
0% from them.



If you're a Fed then you have to wait either 6 months or a year. I was
putting in $575 a paycheck into the TSP in 2006. I bumped it to $650
for this year. That way my contributions automatically stop by December
when the money comes in handy for Christmas.



After a year I think I might get 3%.

Once you're eligible the plan is the same for everybody. You put in 5%
and the government matches it, 5% is the most they put in. You can go
up to the IRS max.




I'm also in the govt.

pension which according to most is worth almost nothing.



At 25 years you would get a pension of about 39% of your high three
years base pay. The formula is 1.7% per year for the first 20 then 1%
for every year after that. I can go at age 49 with 25 years. If I stay
until mandatory retirement at 56 that would give me a 46% pension. I
have no desire to stay that long and do not plan to. I want out ASAP.
Better than I thought, but I'm not staying that long.

Margy