SWA TA Discussion

[Cherokee_Cruiser]

They’ll mother-frak their union and their reps and their NC rather vociferously and publicly, make sweet dank and easy-dunk memes, then go into their rooms, close the door and vote yes anyway.

Truth

 

[Cherokee_Cruiser]

What is it that will have a better return, or is this just an extension of the Frivolity Fund? Serious question. I’ve only met one other pilot who actually had a good plan for the excess contributions.

Me personally? Paying off my mortgage in less than 4 yrs, which is at an APR rate that’s about a 20 yr high. Every dollar spent towards that saves huge interest in the long run. And I’d buy real estate NOW. 25+ yrs left, I’ll get a better return in the long run than saving on the lower tax rate at retirement for the MBCP.

The younger, the more likely you can probably do better - IMO.

 

[trafficinsight]

*complains about the cost of living in California constantly*

*Pays off his mortgage in less than 4 years*

lol.

 

[mwflyer]

*complains about the cost of living in California constantly*

*Pays off his mortgage in less than 4 years*

lol.

LOL! Exactly. He’s a 1%er that acts like he has the financial concerns of the common man in the middle class. Hell, he makes more in 401k contributions than most folks make in a year.

 

[trafficinsight]

LOL! Exactly. He’s a 1%er that acts like he has the financial concerns of the common man in the middle class. Hell, he makes more in 401k contributions than most folks make in a year.

I dunno about 1%er... but definitely someone who doesn't have to be super angry all the time about the cost of anything.

 

[Autothrust Blue]

Me personally? Paying off my mortgage in less than 4 yrs, which is at an APR rate that’s about a 20 yr high.

Ehhhhh. Okay.

Every dollar spent towards that saves huge interest in the long run.

I mean, are we talking double-digits percent here because otherwise it's not "great" debt, but I'd call it "good" debt, or so the theory of our ludicrous economic system goes.

And I’d buy real estate NOW.

I wish I'd thought of that!

25+ yrs left, I’ll get a better return in the long run than saving on the lower tax rate at retirement for the MBCP.

Even after getting (justifiably) clubbed on the marginal rate plus the fact that spill cash not otherwise hidden is duesable income (which is what everyone was complaining about at least one or two BODs ago)?

The younger, the more likely you can probably do better - IMO.

Eh, I doubt it.

 

[alaskadrifter]

 

[Cherokee_Cruiser]

Ehhhhh. Okay.


I mean, are we talking double-digits percent here because otherwise it's not "great" debt, but I'd call it "good" debt, or so the theory of our ludicrous economic system goes.


I wish I'd thought of that!


Even after getting (justifiably) clubbed on the marginal rate plus the fact that spill cash not otherwise hidden is duesable income (which is what everyone was complaining about at least one or two BODs ago)?


Eh, I doubt it.

Yes, even after Fed+State+ALPA+addl Medicare. You’re talking percentage of a dollar. Maybe overall 30-39% going to 10-20% depending on state. Yeah, I think real estate you can buy now that doubles in price (or even more) over a 25 yr course is more worth it.



Sounds like your mind is made up. So why did you ask?

 

[Autothrust Blue]

Sounds like your mind is made up. So why did you ask?

It is, but only insofar as a decision had to be made about opting out as a one time choice, and I’m always curious how people justify these things.

 

[scooter2525]

Figured I would start a thread discussing the new TA and anything that jumps out. As you know, hourly rates alone do not represent the true value of a CBA.

For example, reserves will work 15 days a month (1 day less than current contract) vs. 18 at OAL's.... 3 day difference per month. Over the course of a single year, that's equivalent to more than a month off.

Thats pretty big. Time with our loved ones is, after all, the ultimate currency. Once it’s gone it can’t be replaced.

Is that a month; or 28 day period?

 

[ZapBrannigan]

Is that a month; or 28 day period?

Month

 

[Cherokee_Cruiser]

It is, but only insofar as a decision had to be made about opting out as a one time choice, and I’m always curious how people justify these things.

The same as you’d be doing [checks math] less than 12 mos prior for all the years you’ve been alive. (Before MBCP became your reality)

Take the spill cash, go invest elsewhere. Enjoy returns over 30 yrs.



1.09m home loan, total paid back in 30 yrs is over 1.4m in interest alone if I pay 360 payments. Net pay back to bank is over 2.5 million. Every dollar I pay off sooner not only immensely reduces that total interest, but is also one more dollar I can invest elsewhere and gain a nice return long term.


Of course, I’m talking to one of millions of Americans who locked in sub 3% home mortgages. Must be nice looking from that ivory tower wondering about why someone else may have a different financial reality than yours.

 

[///AMG]

Yeah, I think real estate you can buy now that doubles in price (or even more) over a 25 yr course is more worth it.

75% of me wants to take the road less traveled, of continuing to enjoy our simple house that we like, and wait another 5-10 years until it would be very financially comfortable to purchase what we would like to eventually upgrade into. But there is 25% of me that is thinking I'm never going to see the prices we are right now, again. And I just found the dream place, a mile from our current house. 2 1/2 acres, water and olympic range views, early 1900's farmhouse that is renovated. Detached large garage with an enormous upstairs office/bedroom/guest quarters space. Has a small orchard of mature fruit trees. And they are asking less than 1M. It's a place that always catches my eye as I pass by on my way home from work, and is across the road from a large state park/beach as well. I'm very torn.

 

[Cherokee_Cruiser]

75% of me wants to take the road less traveled, of continuing to enjoy our simple house that we like, and wait another 5-10 years until it would be very financially comfortable to purchase what we would like to eventually upgrade into. But there is 25% of me that is thinking I'm never going to see the prices we are right now, again. And I just found the dream place, a mile from our current house. 2 1/2 acres, water and olympic range views, early 1900's farmhouse that is renovated. Detached large garage with an enormous upstairs office/bedroom/guest quarters space. Has a small orchard of mature fruit trees. And they are asking less than 1M. It's a place that always catches my eye as I pass by on my way home from work, and is across the road from a large state park/beach as well. I'm very torn.

If it truly is the dream place, IMO, go for it. Sub million still exists in the SEA area? Take it

 

[///AMG]

If it truly is the dream place, IMO, go for it. Sub million still exists in the SEA area? Take it

"SEA area" is a stretch, it's a solid 2 hr drive from there, but our market definitely got caught up in the boom of 2020-2021. I hadn't really paid much attention for the last 6 months, but it looks like price inflation is starting to subside fairly sharply, at least in the 500k-1.5M range. If I had to guess, it is that a lot of seattlelites (sp?) who moved here during remote work eventually got tired of the lack of instagrammable restaurants or got called back to the office more regularly. The cows will keep moo'ing long after they are gone.

 

[Autothrust Blue]

Of course, I’m talking to one of millions of Americans who locked in sub 3% home mortgages. Must be nice looking from that ivory tower wondering about why someone else may have a different financial reality than yours.

I'm not allowed to say the words I'd like to say to you in Derg's living room on this topic.

 

[Cherokee_Cruiser]

I'm not allowed to say the words I'd like to say to you in Derg's living room on this topic.

You asked why some would rather opt out of MBCP and take the spillover cash. Sorry the answer was too rough.


You know what they say though, never listen to, or take, financial advice from an airline pilot.

 

[scooter2525]

So 180 days a year from 192?

Month

 

[AA34]

75% of me wants to take the road less traveled, of continuing to enjoy our simple house that we like, and wait another 5-10 years until it would be very financially comfortable to purchase what we would like to eventually upgrade into. But there is 25% of me that is thinking I'm never going to see the prices we are right now, again. And I just found the dream place, a mile from our current house. 2 1/2 acres, water and olympic range views, early 1900's farmhouse that is renovated. Detached large garage with an enormous upstairs office/bedroom/guest quarters space. Has a small orchard of mature fruit trees. And they are asking less than 1M. It's a place that always catches my eye as I pass by on my way home from work, and is across the road from a large state park/beach as well. I'm very torn.

Dude that place sounds awesome.
At least go check it out.

 

[Kingairer]

I feel uncompelled to pay off house early at the mortgage rate I am at, vs what I can do just lazily parking it in an account and earning more interest. Dave Ramsey will be pissed.