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30 years retirement


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Sorry, trying to put a little humor on the board...... :victory:

 

Its been a while since I checked so don`t hold me too this being right on the penny.

 

For a person earning 28 to 30 dollars and hour the factor was something like this. $86 to $90 X 30 (or for years of credited service) to get your monthly benefit. If its $90 that would give you $2700 per month gross. Or $32,400 a year gross.

 

The monthly benefit will be more based on your hourly rate and less if its less. Like everything else in the world you know that if its $32,400 a year gross, you will not get that amount. Not only taxes eat at that number but if you want your wife to get a check after you check out... you will cause Ford to deduct even more. That deduction is based on the level of love and caring you have. For 25% of your check ($675 a month) as a survivor benefit Ford will deduct about $200 every month from your $2700. 50% benefit is more of a deduction --- 75% more and if you be very much in love till the bitter end you can opt for 100% survivor benefit.... at $400 to $500 a month. (I think) Now when you have to declair this level of love I`m not to sure on, but I think its real soon before or after you get that first big old stay home check.

 

Now it dosen`t stop there.... lets say you do drop down to lets say a 20% tax bracket (just sayin ok) that would put you at a combined taxes (Fed, State and all that other crap) of $6480 deduction for taxes a year. So from $32,400 you are now banking $25,920 WOOO WEEEE.... But wait a minute, thats not counting the monthy cost of a survivor benefit check. (after you check out) Lets just say (just sayin) you declair you love the old girl 50%.... you then will see the $25,920 drop some where around another $300 bongo bucks a month... So your big old stay home check is now whistling all the way to the bank at $22,920 (give or take a couple bongo bucks) a year.

 

Then if you sit down and do some si fer enn... you will soon find out that G-d for bid you or mamaa need health care or drugs (the legal ones) you will be deducting the highest co-payments you have ever paid (in your life) from that $22,920. Thanks toooo, well you know why.....

 

So now you know why I was trying to put a little humor into a subject that has little if any happy side.

 

Remember don`t shoot me if the numbers are a little off. But, the deductions are right about where they will be. Now if there is a LOVE CHILD involved....? your monthy benefit could be $22.90. (just a little more humor, sorry)

 

Decker

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go in and see your benefits rep...he can give you the exact number.

Retired from Ford Canada so dollar amounts are different as well as benefits but the plant had someone on salary that looked after hourly pensions and before you sign up they give you a print out of what you will receive on a given date before you sign up to retire. One very good piece of advice I did receive is that you are further ahead to retire before you expire if you want to leave something for your wife. It is a good life after Ford, get on it as soon as you can afford to.

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Utilize all of your UAW negotiated benefits for self improvement.

 

I utilized the apprenticeship and became a Tradesman, continued my education using ETAP and earned a degree. Maxed out TESPHE for the last 18years......

 

If not for utilizing ETAP I would have never understood finance and retirement planning---

 

God Bless the UAW

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Thank you Decker. I still have 8 years to go. I now understand why nobody wants to retire. This is poverty level money! I guess I'll be working till I die!

 

If you get a chance stop by and see Sergio, the man knows not only his job but, he is the best at giving correct data and information for all the different retirement situations. One of our best benefits rep`s. If there is one thing CAP has, that is one of the highest quality staff of benefits rep`s in the whole Ford system. Bar none.

 

Young brother the poverty level is above what a retired couple collect on a monthly or yearly basis. If you are a member that has become acustom to the middle class life style (not an extravagant life style) that will be the hardest adjustment you will undertake once you retire. The out of pocket cost completely change when you become a receiver of VEBA medical coverage. Some are unawre of the concessions that our retiree`s have had to give up. No not holiday pay or other things active members have but they have given up cost of living allowances and this alone based on such a fixed income is a very big cut.

 

If you are in good health 8 years is not going to be hard. Then after you hit 30 you will have to stop and consider all the options. One option I`ve heard people take that dosen`t work out to often is the retire and get your $32,400 a year and work another job.... I`ve listen to those that figured it was going to be much easier to make $10K or $15K at a part time job then add that to the $32,400. Even at an extra $15K that puts their gross up to $47,000 a year. At 20% tax rate (most likely higher than that) you would deduct $9400 a year just for taxes.Now just with taxes your back down to $37,600. And stop and think are you retired? doing anything you want, when you want? Well not really....

 

This option has another side effect, after working at Ford for 30 years we have no idea of what its like in the other work forces. I`ve heard all the stories about how they want you to put up with shit from other people to the boss is fricken crazy....to "I" have to stand for 6 hours on my feet and get no break time and they ride me if I go the restroom...for $7.25 an hour... the hell with this!!!! And then the looking for the next part time job starts. Or then it hits some of the retiree`s HEY "I" will just work at Ford as a entry level??? Now beyond this not going to happen, I always ask...You would work for $14 dollars and hour doing what you used to get $28 an hour to do? You would be surprised at some of the answer`s.

 

One thing is for sure, the under earning retiree is still getting a monthly check, most cases smaller than what is needed but, still a monthly check.

 

Now the group that really hit the wall was the "buyout" group. Early Retirement Buyout group, nope.(some form a of monthly check group) The group that thought they had the world by the ass with their $100,000.00 buyout checks ($62K after taxes) in hand and said good by. This group really didn`t take long to realize just what the world outside the plant was truely like. If there was a day in the 2 years I was down at the hall that 5 or 6 members of this group that didn`t come in and ask "how do I get back" or "I`ll payback the money (on time) back just to get my job back" or "I heard there was a way to get back"....I would have thought the world had ended.

 

Now in no way am I saying there wasn`t some success stories from the buyout group, all I`m saying I didn`t see any. I`m sure the odds are that there had to be one or two...

 

To sum it up young brother, think, think and think some more. Make your decission only after you are sure you can adjust to the lower level of living.Then look at the truth, anything over the $32,400 earned at Ford after your 30, is better than 6K to 8K at Wally`s World. Also the holidays stay and that 200 hours paid time of stays. Plus the profit sharing.... It is a lot to think about. This will be a different decission for each and every member. Health will be a big factor.

 

Good luck young brother, go see Sergio and ask questions. One last thing, to listen to some out on the floor, some retiree`s are getting $5K a month net... don`t beleive it.

 

Decker

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Good advice Decker. However I know many people that invested wisely in their Tesphe, took the buyout at 30 and are doing very well. They talk about the money they don't have to spend to work, which many people who commute have high levels of. Less gas, less miles on the vehicle less dollars thrown here or there for snacks, pop, etc. and how it adds up. There can be a lot of good reasons to retire at your 30 and you don't have to struggle or work another job

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Thanks for all the good information. When I get a chance I will talk to Sergio to get some hard numbers. Unfortunately all I have is my Pension, I have zero invested in Tesphe or 401K, and with the kids starting college this fall, I'm not going to have that privilege anytime soon.

 

One thing for sure young brother you are far from being alone. Even having the small amount of savings set a side for college it was gone the first year. I can say thanks to being able to earn some overtime and for being able to set up payment plans each year of school. Then making the decission to only send the kids and the former wife to an in state school helped also. Be careful of "sales persons" when you start signing up for your childrens classes. They come in the form of "counselor" most of the time these people help out but then at one point they turn into the sales person and when a parent states they want only the best for their children..... that is the code phrase for open your checkbook.

 

You have 8 years of earnings and profit sharing (hopefully) and if you send them to a school (most do) that will set up those no or very low interest payment plans you will be ok. One bit of suggestion if I can.... STAY THE HELL AWAY FROM ANYTHING CALLED A STUDENT LOAN..... These dam things can mess up a parent or childs life for a very long time. I had two in at the same time for two years. NIGHTMARE.... But I talked with the school (bursurs office) and things worked out. I finished paying for two Purdue pieces of paper 18 months after they had left campus. But, I have two kids that came out loan free..... :) I`ve got friends that fell for the other method (loans) and lets just say BAD METHOD....

 

At times you will be the bad guy but just keep a hand on reality and the time will come, with a lot of work, you will be very proud and.... very glad its over. Then when it is (over) you can start putting away for when you feel its time to head out the tube for the last time. Good Luck.

 

Decker

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chassisgroupleader,

 

I was just reminded about one thing I (and a lot of others) had that you will not have to help, that $1200 a year and then for three years that $1500 a year per dependent for school that our company gave me. And beleive me it helped. Getting that first bill from school each year and seeing that amount deducted was great.

 

Just another benefit taken away in rough times and then forgoten about after 19 consecutive quarters of profit....

 

You will make it.

 

Decker

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myfordbenefits.com

You can put in your retirement dates and it will show what you get. If you retire before 62 you take a penelty on your pension but supplemental makes it up if you have 30 years. If you don't have 85 points at retirement your penelty on your pension remains for the rest of your life. If you have 85 points your penelty goes away at 62. Go to this web site and put in dates that will show you retiring at 84 points and also at 85 points and compare. It will show pension increase at 62 for 85 points but not at 84 points. Points are years of service + age.

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I have the best of both worlds. I work 60+ hours a week because of my seniority on an easy job, and I also collect my government pension. Retirement is for the birds. I love my life.

Dingy, wait til you do your 2014 taxes, Govt. pension will be clawed back with an income like that, same as employment insurance when you go over their magic number. That is income not taxable income, you can't hide it anywhere. I think it kicks in around $66,000.

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Dingy, wait til you do your 2014 taxes, Govt. pension will be clawed back with an income like that, same as employment insurance when you go over their magic number. That is income not taxable income, you can't hide it anywhere. I think it kicks in around $66,000.

 

XSTAP,

 

I don`t think the taxes are implemented the same in the US as Canada? But really, if Trimdingman is happy what else is there? Hold off on a judgmental position...

 

Decker

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XSTAP,

 

I don`t think the taxes are implemented the same in the US as Canada? But really, if Trimdingman is happy what else is there? Hold off on a judgmental position...

 

Decker

 

Getting out and letting the younger people have a chance at things? Haven't we watched enough old timers who could afford to leave stay in easy jobs while many lower seniority took buyouts 5 years back scared of getting laid off. Now they are retiring and instead of tier one people those jobs are filled with tier two.

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