Why Pilots Really Need a Financial Advisor


financial advisor for pilots

With multi-state tax filing, fixed retirement schedules, and adjusting your finances to the dynamics of aviation, airline pilots have more than their fair share of financial challenges. In addition to dealing with the insecurities that come with a sometimes volatile industry, pilots should be aware of tax credits and deductions specific to their profession. Airmen also face insurance issues specific to their profession. Fortunately, financial advisors can provide advice and expertise for the financial needs of drivers.

What is a Financial Advisor?

A financial advisor is a professional who ideally has expertise and years of experience in managing finances, including taxes, estate planning, investments and more. While anyone can call themselves a financial advisor, financial advisors often earn certifications that show their competence.

Financial advisors do not have any special educational requirements, but lawyers and accountants sometimes become financial advisors due to the nature of their work. Additionally, many financial advisors start out as apprentices at long-established financial firms and become skilled in the field through years of working with seasoned financial advisors and experts.

Due to the complex tax situation of pilots, seeking a financial advisor who specializes in tax may be a good idea. For example, a financial advisor who is a certified public accountant (CPA) can help you sort out tax issues and questions and ensure that your finances are properly protected.

How much does it cost to work with a financial adviser?

On average, financial advisors charge clients about 1% of assets under management, but this varies depending on the services you receive, the company you use, and the amount you invest. Typically, services rendered include tax assistance, investment services, wealth management, and financial planning. It’s also possible that a financial adviser may receive commissions for certain investments or services in addition to their fees for assets under management (AUM), so make sure you have the full picture before committing to one. a financial adviser.

Additionally, some financial advisors charge an hourly or annual fee instead of a percentage. Others may make money purely on investment fees, possibly putting the profitability of specific funds ahead of your best interests. That said, you can choose to work with a trustee, who is a financial advisor legally bound to put your interests first. As such, it’s crucial to know precisely how your financial advisor makes a living so you can find one you’re comfortable with.

If you are looking to reduce your costs, a robo-advisor may be the ideal service for you. Typically, a robo-advisor will charge between 0.25% and 0.5% of assets under management, which will cut your costs in half while providing financial advice and investment advice. However, since pilots face industry-specific challenges such as medical stipulations, forced retirement at age 65, and risks such as acquisitions and mergers, a robo-advisor can provide insight and a insufficient support.

How to find a financial advisor for pilots

financial advisor for pilots

financial advisor for pilots

As with many financial services and products, it’s best to shop around rather than pick the first one you find. When you start looking, you’ll probably find that financial advisors are everywhere and it can be hard to know if you’re making the right choice. If you are just beginning your search, there are several ways to find a selection of qualified financial advisors, including:

  • Industry Tools: An online tool such as SmartAsset’s free Financial Advisor Matching Tool can simplify your search. By answering a few questions, you can connect with up to three local financial advisors, interview each one personally, and decide which one is right for you, all at no cost.

  • References : Family, friends and co-workers you trust can provide excellent suggestions for a financial advisor. If you have a colleague with a financial advisor who has many pilots among their clients, they may specialize in serving clients in your field.

  • Data base : Online databases contain up-to-date information about financial advisors in your area. You can check out web search features from organizations such as RAA, Garrett Planning Network, XY Planning Network, Certified Financial Planner Board of Standards, National Association of Personal Financial Advisors (NAPFA), and Financial Planning Association (FPA).

Key Considerations for Hiring a Financial Advisor

When collecting recommendations and viewing financial planners online, you can apply a host of criteria to help you make a wise choice. Some of the most important things to consider may include things like the credentials they hold or the specific services each specializes in. Let’s take a look at some of the important things to consider when making your decision.


References are a way for financial advisors to show their knowledge and understanding of the services they provide. Financial advisors with one of the following qualifications may best suit your needs and can assure you that they will be able to answer your complex questions:

other considerations

Although your financial advisor’s credentials can be a very important consideration, there are other things you can do to narrow down your list.

  • Size of the company : Some financial advisors operate alone, while others work in companies with hundreds of other professionals. If you want a personal touch or more one-on-one help, you might find a smaller operation more suitable. However, scale doesn’t necessarily indicate less personalization, and a company’s larger size can indicate its success and effectiveness with a strong customer base.

  • Skill: Certifications can help you choose a financial advisor, but following up with questions about their area of ​​knowledge can help you more. Any financial adviser must be competent in the following areas:

  • Taxes: As a pilot, your state taxes are paramount. For example, the fact that pilots work across state lines can complicate filings. A financial advisor should be able to answer all your tax questions and issues.

  • Retirement: The mandatory retirement age is an important factor in your retirement planning and financial well-being.

  • Invest : Your financial advisor should know how to help you invest for retirement, college expenses and more.

  • Financial planning: A financial advisor should be able to help you budget and achieve your financial goals.

  • Minimum requirements: Some financial advisors and money management companies require their clients to bring a specific amount of money to the table. Minimum requirements can range from $50,000 to $1 million, so if you’re early in your career, you may not be eligible to work with some financial advisors.

  • Fee structure: Although this guide has already mentioned them (can you say they’re important?), fees are an important factor when choosing a financial advisor. Working with a financial advisor without understanding how they make money can lead to mistrust, misunderstandings and stress. Choosing a financial advisor that you are comfortable with not just paying, but paying in a specific way can give you confidence, confidence and peace of mind.

Questions to Ask Candidate Financial Advisors

financial advisor for pilots

financial advisor for pilots

When interviewing financial advisor candidates, you can ask everyone the same set of questions to get an idea of ​​who can meet your needs. These questions should help you better understand their expertise related to the airline industry or how they can meet your unique financial needs. Some of the best questions to ask might include:

  • Do you have experience with pilots?

  • What certifications do you have and what clientele do you mainly serve?

  • Are you familiar with multi-state tax filings for pilots?

  • Are you a fiduciary?

  • Do you have any disclosures, such as criminal activity or customer complaints?

  • What services do you offer?

  • What fees and costs do you/your company charge?

  • What is your investment style?

  • How often can I expect communications from you?

The essential

As a pilot, you have unique financial, insurance and tax needs. Fortunately, financial advisors have the certifications and skills to help you navigate tax preparation, retirement, career transition and more. By researching financial planners with specialist qualifications and asking them specific questions, you can discern which one is right for you.

Advice from financial advisors for pilots

  • As a pilot, you have specific financial needs that only certain financial advisors can meet. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your advisors at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you reach your financial goalsstart now.

  • Are you ready for an age-based retirement? Investing for your golden years can be daunting, but it’s worth jumping into it as soon as possible. Use the following guide to retirement income strategies.

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