Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread
Old 12-04-2019, 08:09 PM   #1  
Line Holder
Thread Starter
 
BurritoBeach's Avatar
 
Joined APC: Jul 2013
Posts: 26
Default RAA (or any other Financial Consultants)

Hey, everyone-

I知 a July 30th hire, am doing a little shopping and could use some help. I知 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知 trying to get things in order since I知 relatively young and want to protect my family as much as possible while times are good. Thanks for any and all suggestions.
BurritoBeach is offline  
Old 12-04-2019, 08:31 PM   #2  
Squawking 2000
 
Winston's Avatar
 
Joined APC: Jul 2015
Position: Skeptical
Posts: 656
Default

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.
Winston is offline  
Old 12-04-2019, 09:37 PM   #3  
Gets Weekends Off
 
ReadyRsv's Avatar
 
Joined APC: Jul 2015
Posts: 734
Default

We already pay for Schwab advisors. Call them.
ReadyRsv is offline  
Old 12-04-2019, 10:20 PM   #4  
Gets Weekends Off
 
Grumble's Avatar
 
Joined APC: Nov 2009
Posts: 3,964
Default

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.
Grumble is offline  
Old 12-04-2019, 11:04 PM   #5  
Line Holder
 
FGHJKL's Avatar
 
Joined APC: May 2010
Posts: 35
Default

Quote:
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.
FGHJKL is offline  
Old 12-05-2019, 03:34 AM   #6  
Gets Weekends Off
 
flap's Avatar
 
Joined APC: Dec 2008
Position: 777 Cap
Posts: 199
Default

Quote:
Originally Posted by BurritoBeach View Post
Hey, everyone-

I知 a July 30th hire, am doing a little shopping and could use some help. I知 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知 trying to get things in order since I知 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.
flap is offline  
Old 12-05-2019, 05:37 AM   #7  
Gets Weekends Off
 
APC225's Avatar
 
Joined APC: Feb 2011
Posts: 3,866
Default

Quote:
Originally Posted by BurritoBeach View Post
Hey, everyone-

I知 a July 30th hire, am doing a little shopping and could use some help. I知 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知 trying to get things in order since I知 relatively young and want to protect my family as much as possible while times are good. Thanks for any and all suggestions.
I don稚 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.
APC225 is offline  
Old 12-05-2019, 05:52 AM   #8  
Gets Weekends Off
 
Hatesheavys's Avatar
 
Joined APC: Oct 2019
Position: B737 CA
Posts: 114
Default

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値l 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.
Hatesheavys is offline  
Old 12-05-2019, 06:04 AM   #9  
Gets Weekends Off
 
Big E 757's Avatar
 
Joined APC: Nov 2013
Position: A320 Left seat
Posts: 1,711
Default

Quote:
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 釘ogleheads and start reading. When you hit 55 start thinking about going more conservative, when you hit 60 start getting VERY serious.

You池e welcome. I値l take my consulting fee in the form of scotch whiskey.
Seriously. This is all you need to do.
Big E 757 is offline  
Old 12-05-2019, 07:05 AM   #10  
New Hire
 
GVLaker2015's Avatar
 
Joined APC: Dec 2019
Posts: 2
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
GVLaker2015 is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search


Related Topics
Thread Thread Starter Forum Replies Last Post
Emirates Interview Woofer Foreign 275 06-20-2012 03:12 AM
Wings Financial SkyWolf Money Talk 6 05-14-2011 05:35 PM
Aviation subcommittee hearings live Flyby1206 Major 9 06-17-2009 10:23 AM
RAA Deal? Danzig Flight Schools and Training 8 08-08-2007 04:02 PM
Get rich slowly ... SWAjet Money Talk 12 12-10-2006 02:24 PM


All times are GMT -8. The time now is 12:53 AM.