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RAA (or any other Financial Consultants)

Old 12-04-2019, 08:09 PM
  #1  
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Default RAA (or any other Financial Consultants)

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.
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Old 12-04-2019, 08:31 PM
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32 years old? No need to get complicated or pay someone else to tell you to basically go full steam ahead. Max out the 401k, stay away from the Target Funds and go low fee index. 2/3 Total Us Equity Index and 1/3 International Equity Index. Rebalance every year. Google “Bogleheads” and start reading. When you hit 55 start thinking about going more conservative, when you hit 60 start getting VERY serious.

You’re welcome. I’ll take my consulting fee in the form of scotch whiskey.
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Old 12-04-2019, 09:37 PM
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We already pay for Schwab advisors. Call them.
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Old 12-04-2019, 10:20 PM
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Make sure you understand the difference between a fiduciary and a financial planner/advisor/broker/insert any other title.

Fiduciaries are the only ones with a vested interest in your success.
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Old 12-04-2019, 11:04 PM
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Originally Posted by Winston View Post
...and go low fee index. 2/3 Total Us Equity Index and 1/3 International Equity Index.
^ what he said: https://www.cnbc.com/2019/03/15/acti...-indexing.html

...I'm 50/50% US Equity Index & International Equity Index, and have no need to pay others to lose money for me. Active management is more for big hedge funds which have greater resources and information than us little investors & those who want to take our money.
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Old 12-05-2019, 03:34 AM
  #6  
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Originally Posted by BurritoBeach View Post
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.
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Old 12-05-2019, 05:37 AM
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Originally Posted by BurritoBeach View Post
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.
I don’t disagree with the self-directed Boglehead route, but in answer to your question, I did try out the RAA group to manage part of my PRAP and they were legit and did as good a job as any if you want to go that route, as many do for various reasons. I eventually went a different way but RAA was fine.
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Old 12-05-2019, 05:52 AM
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Schwab has free advisors and free etf and mutual fund portfolio builders online. Why pay someone 1% or more a year to do what you can do for free.... Before you know it you’ll have 1 Million or more in your account, 1% fee is a CHUNK of money. NOBODY beats a balanced portfolio over a 20 year period. Open your PCRA and look for The portfolio model link. I would avoid just using the target funds in the Schwab acct.
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Old 12-05-2019, 06:04 AM
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Originally Posted by Winston View Post
32 years old? No need to get complicated or pay someone else to tell you to basically go full steam ahead. Max out the 401k, stay away from the Target Funds and go low fee index. 2/3 Total Us Equity Index and 1/3 International Equity Index. Rebalance every year. Google “Bogleheads” and start reading. When you hit 55 start thinking about going more conservative, when you hit 60 start getting VERY serious.

You’re welcome. I’ll take my consulting fee in the form of scotch whiskey.
Seriously. This is all you need to do.
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Old 12-05-2019, 07:05 AM
  #10  
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Default Pilot Centered Financial Advice

My family uses a fantastic advisor who has completely tailored his practice towards pilots, their families, and their specific needs.

A lot of people don't fully realize the impact taxes will have on their income when they begin taking their distributions from their 401(k). (Even after 59 1/2) Let me know if you want his contact information
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