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ABF | 2023 Contract Proposals

Aacah+10 said:
44k in a pension doesn't even come close to what you can do with a 401k. There's far too much federal regulation. Long term your return will be much higher in the 401k. I keep hearing retired guys on pensions talking about getting 3500 a month which isn't much. Or guys talking about getting 5500 in the future. 5500 might sound decent now, but it won't be in 10, 15, or 20 years.
With a 401k you can live off growth in retirement and leave your millions to you wife or kids. You're really limited if the bulk of your retirement is tied up in a pension.
I'm not saying that pensions are bad, just that by the numbers a 401k is better.
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My Teamster pension pays me $40,280.00 a year. I retired and got my first check in September 2004. Do the math. I have collected $704,900 in 17.5 years.
 
Razorblade said:
My Teamster pension pays me $40,280.00 a year. I retired and got my first check in September 2004. Do the math. I have collected $704,900 in 17.5 years.
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Someone retiring with 5 million in a 401k can easily pull 150k a year and still have their balance grow. 🤷 150k x 18 is 2.7 Million.
 
Aacah+10 said:
Someone retiring with 5 million in a 401k can easily pull 150k a year and still have their balance grow. 🤷 150k x 18 is 2.7 Million.
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OK, just doing some rough, crude calculations, contributing $22,500 (2023 max) into a 401K every year for 30 years getting an average return of 4% gives a future value of about $680,000. That's a far cry from the $5 million you claim. Please educate me as to how you come up with $5 million, I'm open to learning.
 
Triplex said:
OK, just doing some rough, crude calculations, contributing $22,500 (2023 max) into a 401K every year for 30 years getting an average return of 4% gives a future value of about $680,000. That's a far cry from the $5 million you claim. Please educate me as to how you come up with $5 million, I'm open to learning.
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Haha Do you know anything about compounding interest? You don't need 23k for 30 years to get 5M. The average is closer to 10% average return. Your math is way off.
 
Aacah+10 said:
I'm assuming you're talking about fedex freight. I don't know much about them, but I'm assuming they're much like od. At OD you can get 30k matched in 401k in 2 years when you add the weekly and discretionary match. Guys always laugh when I say I'd take my 401k over a pension any day. Fact of the matter is I'm fully vested and will be a multi millionaire well before retirement.
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I don't know how old you are, or how much you contribute each week.
I think if your young your definitely on the right track!
Congratulations on being smart with your money and actually paying yourself first!
On the other hand markets do fluctuate....
Considering that I'd just a soon have that guaranteed pension with a 401k backup.
And you also have to consider having a family, an illness in that family, a layoff, an injury to you or any number of things that could side track your contributions.
With a pension its still there for you later...even if you can't make your own personal contribution that week or month.
 
Aacah+10 said:
Haha Do you know anything about compounding interest? You don't need 23k for 30 years to get 5M. The average is closer to 10% average return. Your math is way off.
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Hey genius, do you know how to use a financial calculator? Do you know how to calculate time value of money? Do you know how to do an annuity calculation based on regular investments, interest rate, time, and then calculate future value of that annuity? Pull your somewhat ignorant head out of your butt and learn something then come back here with some intelligent comments.
 
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Triplex said:
Hey genius, do you know how to use a financial calculator? Do you know how to calculate time value of money? Do you know how to do an annuity calculation based on regular investments, interest rate, time, and then calculate future value of that annuity? Pull your somewhat ignorant head out of your butt and learn something then come back here with some intelligent comments.
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My apologies, I redid the calculations a bit more accurately. If you deposited 432.69 weekly into your 401K (22,500 current yearly max divided by 52 weeks) after 30 years with a 4% yearly return, you would have approx. $1,305,200 after those 30 years. Based on your assumption of a 10% yearly return with the same contributions you would have approx. $4,289,455 after 30 years. Although a 10% return is the long time average gain of the Dow and S&P 500, it's usually wise to calculate gains using a lower rate to be conservative. So yes, under your assumptions of constant 10% yearly return you would get closer to but still not quite the $5 million you initially claimed. With the economy as it is now, assuming 10% per year return might be a very long shot over the next 30 years.
 
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Triplex said:
My apologies, I redid the calculations a bit more accurately. If you deposited 432.69 weekly into your 401K (22,500 current yearly max divided by 52 weeks) after 30 years with a 4% yearly return, you would have approx. $1,305,200 after those 30 years. Based on your assumption of a 10% yearly return with the same contributions you would have approx. $4,289,455 after 30 years. Although a 10% return is the long time average gain of the Dow and S&P 500, it's usually wise to calculate gains using a lower rate to be conservative. So yes, under your assumptions of constant 10% yearly return you would get closer to but still not quite the $5 million you initially claimed. With the economy as it is now, assuming 10% per year return might be a very long shot over the next 30 years.
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My apologies. I wasn't clear enough in my response. I don't need 23k per year of my own contributions to get there if my employer adds 15k per year ( which doesn't count against the max contributions). BTW, I started my 401k well before I turned 30. I'll have more than 30 years of investing before I hit 59.5.
The economy doesn't scare me at all. I love these down times in the stock market. I'm able to buy more shares at a lower price. Downturns in the stock market /economy happen frequently, it's a great way to make money. History will show many lows and many highs. Only those who panic lose.
 
Triplex said:
Hey genius, do you know how to use a financial calculator? Do you know how to calculate time value of money? Do you know how to do an annuity calculation based on regular investments, interest rate, time, and then calculate future value of that annuity? Pull your somewhat ignorant head out of your butt and learn something then come back here with some intelligent comments.
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Don't get mad. It'll be alright.
 
I’m at an end of line smaller terminal. Our steward here thinks we will have proposals to vote on in the next 30-45 days or so. This is my first contract with ABF. Any truth to that?
 
Swingwide said:
I’m at an end of line smaller terminal. Our steward here thinks we will have proposals to vote on in the next 30-45 days or so. This is my first contract with ABF. Any truth to that?
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I doubt that....the union is meeting with locals in Washington DC this month to talk about what they plan on proposing.... I don't see how your stewards timeline is possible...
 
Steward of the Rock said:
I know it is still a little early for the 2023 Contract Proposals, but I figured we could use the Trucking Boards platform to post what we have or what we would like have or change. Hopefully, the OZ slate has someone that reads these boards and they will get an idea of what we would like to see changed. I will start off posting two of the thirty-five proposals that I have come up with so far

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Saw yesterday they started negotiating so I am pretty happy. Hopefully we get to hear something soon. I am way more excited over this than the hubs. Lol
 
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