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Boeing will cut production and jobs further, and may build 787 only in South Carolina

August 5th, 2020 | Leave a comment.

Boeing said that due to the collapse in demand for airliners, it will slow down the planned ramp-up of 737 MAX production in Renton, cut widebody jet production rates in Everett and study consolidating 787 Dreamliner assembly in a single location.

The rate reductions and possible shrinking of facilities will bring further job losses beyond those previously announced, Boeing said as it announced a $2.4 billion loss for the quarter ending in June. It did not specify how deep the cuts will go.

Source – The Seattle Times

What You Need To Know!

The Boeing Company Voluntary Investment Plan is a defined contribution plan with a profit-sharing component, 401k feature, and ESOP component. This plan has a BrightScope Rating of 87, placing it in the top 15% of all plans in its peer group. This plan is also in the top 15% of plans for Account Balances, Company Generosity, Participation Rate, Salary Deferral, and Total Plan Cost. The Boeing Company Voluntary Investment Plan currently has over 205,400 active participants and over $58.6B in plan assets

That being said, the rating of 87 versus a top rating of 91 could equate to 4 additional years of work and or over $59,944 in lost savings.

The plans administrator is Heather Haynes-O’Brien and is handled in Seattle, WA.

One of the key concerns is that the plan only has 21 investment options which is common for most 401k type plans.

Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile. 

With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.

For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.

Wishing you the best.

Doug Reed, CRPC, AAMS

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