Originally Posted by
ThumbsUp
I would recommend you talk to a professional if you have the assets to purchase them. Particularly if you have a large amount of money outside of retirement accounts. You are thinking of them as a mutual fund, which they are not. They are a tax avoidance tool. They don’t have a NAV or post 1099s.
I am familiar with how they function. I completed the academic portion of the certified financial planner program (masters).
The point of my post is to point out to the average pilot that he or she is much better off using the retirement vehicles in their 401K before chasing things that claim to have “special access” to exotic investments. Your financial advisor is taking a huge cut when he sells these things to you, and the hedge fund manager is taking another huge cut by selling these things.
Not sure about the other airlines but Delta and United pilots can do back door Roth 401ks. This allows them to put almost 44K of already taxed money and 23k of pretax money in tax free (Roth) and tax deferred (traditional) accounts. Coupled with Back door Roth IRAs, they can put almost 85K of their money away. I think folks should utilize these accounts then diversify into real estate, if they still want to invest more.