Originally Posted by
BurritoBeach
Hey, everyone-
I’m a July 30th hire, am doing a little shopping and could use some help. I’m 32 with a three-year-old, another on the way and presumably more in the pipeline (if my wife gets her way
). I saw an advertisement for RAA Investment Group and a Captain in my crash pad says he uses Morningstar to manage his PRAP.
My question is whether anyone here uses a third party service for the PRAP/investments geared towards our profession? I’m trying to get things in order since I’m relatively young and want to protect my family as much as possible while times are good. Thanks for any and all suggestions.
The Target Dates Funds in the PRAP are designed specifically for our pilots based on our pilot demographics and are a good place to start while you do a bit of research.
I agree 100% on reading the Boglehead forum. A group of investors that take a simple yet effective method of investing, that does not include advisors.
Using an advisor for the next 30 years will cost you more than a million of your hard earned dollars.
Schwab does have various management services available at a cost. They will also give you a free checkup for being in ALPA.
More of an overall check for total financial wellness.
Hard to beat our fees in the PRAP for the Index funds. Total Stock Market = 1.4 basis points (1.4 100ths of 1%)
Total International = 8 basis points
Total Bond = 3 basis points.
Adding an advisor will add 1% to the cost and they typically put you in expensive funds that may or may not outperform the market.
I am a fan of the Boglehead style and currently have 30% Total Stock Market.
20% Total International
50% total Bond.
Conservative as I am almost 63.
Please do some research before you go the advisor route. The best thing you can do is set your portfolio up for nice mix US Stocks, Intl Stocks, Bonds and then save as much as you can.
I'll go out the door with 2.5 and with 30 plus years to go you will have more than twice that amount.