"BOEING's Big Moment: The Deal That Fell Short, and the Solution They Overlooked."

The Costliest Strike at Boeing: Did the Deal Fall Short?

By W.H. STEINER

When Boeing’s recent strike ended, many hailed the settlement as a victory. However, workers are questioning whether it truly ensures their long-term financial security. The agreement included a 38% wage increase and a $12,000 ratification bonus, but it missed an opportunity for lasting protection: the 702s Plan.

A Missed Opportunity for Financial Security

During the strike, workers pushed for pension revival — a reliable source of retirement income — but Boeing rejected this, citing costs. Instead, employees received wage hikes and a $12,000 ratification bonus, of which $5,000 was directed to their 401(k)s. While these offer short-term relief, workers remain vulnerable to market fluctuations and insufficient savings.

The absence of long-term protection — especially for those facing illness or serious injury — is a significant oversight. The 702s Plan could have provided that stability and placed more confidence in the very people who wake up every morning to go to work for the BOEING brand.

The 702s Plan: A Better Solution

Unlike traditional 401(k)s, which are subject to market risks, the 702s Plan offers guaranteed, tax-free income with growth shielded from volatility. It combines pension-like stability with modern financial strategies, providing workers with a steady financial safety net, immune to economic turmoil.

The 702s Plan vs. 401(k)

A 38% wage increase for a 45-year-old earning $68,000 raises their salary to $76,840, plus a $5,000 401(k) one-time contribution. However, the 401(k)’s growth averages 4% annually, when you take in the average from the ups and downs of the stock market, meaning after 20 years, the $5,000 may only add $150 per year to retirement income after taxes and perhaps 10-15 years into retirement a $200-$300 annually.

The 702s Plan offers a tax-advantaged alternative, with greater long-term growth potential and flexibility. Imagine investing that $5,000 lump sum, plus monthly contributions, with a company match. Over time, this strategy could outperform a traditional 401(k), ensuring stronger financial security. You can see a comparison of the benefits and flexibity here.

Let's review an example 702s Plan for a male employee age 45 at BOEING.

Disclaimer: The above illustration was calculated at 7.48%, due to regulatory guidelines for Indexed universal Life contracts. The historical average for the last 20 years using W.H. STEINER´s top index pick is 11.32% in comparison to the last 10 years was 13.79%.

Reimagining Retirement for Boeing Employees

Boeing employees could benefit from a smarter retirement strategy, with guaranteed growth and tax-free income, eliminating the unpredictability of market swings and tax changes. With a well-designed plan like the 702s, they can build a secure financial future that outpaces inflation.

Here is the list of Benefits of the 702s Plan

"Take a closer look at the true benefits of this plan and fully appreciate its value, understanding the profound impact it could have on:"

1. Tax-Free Accumulation & Distribution: Loans taken from the account are treated as distributions and receive favorable tax treatment under IRS code 7702, making withdrawals tax-free.

2. Market Volatility Protection: A "Zero Floor" ensures that the account won't lose value due to market downturns, protecting your principal.

3. Annual Locked-in Gains: Gains made at the end of each contract year are locked in as the new principal, securing long-term growth.

4. Early Access to Liquidity (Year 1+): After the first year, you can access funds at any time, offering flexibility in case of emergencies or opportunities.

5. Loan Flexibility: Loans do not reduce the account value, which continues to grow. This unique feature allows for borrowing options without diminishing wealth accumulation.

6. Compound Interest Growth: The account value increases through compound interest, maximizing long-term growth potential.

7. Living Benefits: The plan provides financial support in the event of terminal, critical, or chronic illness, as well as for long-term care needs.

8. Estate Benefit: Upon death, a tax-free benefit is provided to your beneficiaries, which can be used to settle debts, pay taxes, or provide for loved ones, including establishing care for pets

A Missed Opportunity

The cost of the strike to Boeing was over $7.6 billion, yet the settlement failed to provide the financial security workers needed. The 702s Plan could have addressed Boeing’s and its workers’ concerns, providing guaranteed protection and growth for future generations.

Conclusion: A Critical Solution We Can't Ignore

It’s time to rethink how we protect workers' futures. The 702s Plan is not just a missed opportunity — it’s a crucial solution that would support by prioritizing long-term stability for machinists, Boeing can rebuild trust, improve morale, and solidify its reputation as a company that values its employees — all while enhancing shareholder value and positioning itself for sustained success.

To learn more about the benefits of the 702s Plan, visit the W.H. STEINER website.

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