The Pilot Money Guys

What is a Market-Based Cash Balance Plan (MBCBP), and why is it becoming the go-to retirement vehicle for pilots at major airlines like Delta? In this episode, we explain what an MBCBP actually is, how it's different from a pension or 401(k), how the investments work, and why pilots need to understand this model to make smart retirement decisions. You'll hear how funds are pooled, what kind of returns to expect and why the guarantee provided by the airline makes this a powerful planning tool. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/mwk4w2d4 

Can a mindset of gratitude really change your financial life? In this episode, we explore how the power of gratitude directly influences your outlook, your decisions, and ultimately, your financial success. You'll learn why slowing down to reflect on what you're thankful for can actually sharpen your focus and guide you toward a more meaningful retirement. Gratitude isn't just a feeling; it's a practice that creates clarity, helps you define what really matters, and strengthens your ability to handle life's challenges with resilience. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/ybx77hbr 

What if you're about to retire—and the market takes a nosedive? For those in their 60s, looking toward retirement at 65, market volatility can feel like a punch to the gut. In this episode, we dive into how to confidently retire into a turbulent market, what lessons we've learned from past downturns, and why market dips aren't as rare—or as disastrous—as they seem. You'll learn why diversification matters, how to assess your true financial risk, and what practical steps you can take right now to protect your retirement plans. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/bdf6edab 

What do you do when the world feels unpredictable—and your financial future even more so? In this episode, we're diving into how pilots can mentally and financially prepare for uncertain times. From industry shake-ups to unexpected announcements from new governments, uncertainty is the only constant. But it's not the events themselves that rattle the market—it's the surprise factor. Listen in to learn why mindset matters just as much as money, and how to develop habits that help you thrive—not just survive—when markets get shaky. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/pppbw5j3 

What good is wealth if you don't feel good? For busy professionals—especially pilots—maintaining health and nutrition while constantly on the go is a major challenge. In this episode, financial planner Mark Covell and his wife Adriana Covell, NBC-HWC, break down how small, intentional choices can lead to long-term health without feeling deprived. Adriana discusses the emotional connection we have with food, how to break unhealthy habits, and why understanding what your body actually needs is key to achieving both quality of life and longevity.  Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/b5jz2u  

Is direct indexing the right investment strategy for you? In this episode, Shawn Jaberzadeh, Co-Head of Enterprise Group at Dimensional Fund Advisors, breaks down how direct indexing works and when it might be a better fit than off-the-shelf investment options. We explore the key differences between standard and aggressive tax management, the role of separately managed accounts (SMAs), and how tax loss harvesting can impact your portfolio. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/y62e97hb  

How can you teach your kids smart money habits without creating entitlement? In this episode, we dive into the essential lessons of raising financially responsible children. We explore the challenges first-generation wealth builders face, the guilt that often comes with financial success, and why many families lose their wealth by the third generation. You'll learn why discussing money early and intentionally is key to long-term financial success. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/5dmymzmf 

What does it take to transition from a TOPGUN fighter pilot to a bestselling author? Jack Stewart, a former U.S. Navy fighter pilot with 23 years of service, joins the show to share his fascinating journey from flying combat missions to writing gripping novels. With five books under his belt, Jack dives into how he develops his stories, navigates classified information, and handles rejection in the publishing world. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/4rw39rr7 

What does it take to redefine success and find joy in the journey, not just the results? In this episode, we're joined by Anthony Thompson, CEO of Thompson Consulting & Advising, a mindset and performance coach, and author of The Unhurried Life: Discovering Peace and Purpose through Faith-Filled Living. With over 20 years of experience driving growth for Fortune 500 companies and non-profits, Anthony shares his proven strategies for achieving clarity, aligning your values with your goals, and transforming your life from the inside out. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/ycy2rn35   

Are you a young professional pilot looking to build a solid financial foundation? In this episode, we sit down with Lisa Rosenthal, COO, Nolan Clark, Associate Financial Planner, and Jon Schultz, Paraplanner, to discuss strategies tailored for young professionals aiming for long-term success. From understanding your unique financial behaviors to establishing savings priorities, you'll learn about the steps you need to take to secure your future. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/btpycmpt 

Is the market overvalued and on the brink of an implosion? Join us as we dive into the intricacies of market valuation and investment strategies. In this replay episode, we're tackling some of the pressing questions about whether the market is currently overvalued, what market valuation metrics mean, and how investors can navigate these uncertain times. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/ytbnkpss 

Are you contemplating whether to enlist the expertise of a financial advisor as your income rises? In this replay episode, we dive into the pivotal question: Should you hire a financial advisor? We discuss how to evaluate and question potential advisors, shedding light on the crucial questions you must ask before making a decision.  Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/39cpj3s4 

What truly makes for a fulfilling and happy retirement? In this episode, we explore the key pillars of health, relationships, and finances to help you create a retirement plan that aligns with your values. From understanding how deliberate planning impacts retirement satisfaction to practical tips on managing health, maintaining relationships, and navigating retirement finances, this discussion offers a comprehensive roadmap to prepare for a purposeful and joyful retirement. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/55pctj3a 

Have you received an inheritance recently? Or have you been thinking about how to leave one? In this episode, Kevin and Charlie tackle key questions about inheritance, covering everything you need to know—whether you're inheriting or passing on assets. From new legislation to strategies that help both you and your beneficiaries maximize your wealth, this episode will give you a powerful roadmap for navigating the process today and in the future. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/mtuc9zev

Curious about strategies pilots can use to maximize tax efficiency? In this episode, we're tackling hard-hitting tax numbers, future-focused savings strategies, and essential tax changes on the horizon, especially for those over 60. You'll learn the ins and outs of tax deductions, even on W-2 income, and tips for maximizing tax-efficient retirement income. We'll also cover the benefits of backdoor Roth contributions, health savings accounts (HSAs), and charitable donations to reduce taxable income. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/3aedvek6 

Should you get into real estate investing? In this episode, we sit down with former Top Gun Navy and Air Force fighter pilot—and current UPS pilot—Micah Porter, aka Peachez. He joins us today to discuss his transition into real estate investing, sharing his motivation for entering the real estate market and why real estate became his side gig. Take The Pilot Wealth Index to find out if you are on track for retirement! You can find show notes, resources and more at: https://tinyurl.com/uv43zupa 

What does it really take to be successful with money? In this episode, we dive into key insights from The Psychology of Money by Morgan Housel, discussing principles that can help transform your relationship with money. Whether you're preparing for retirement or simply trying to make smarter financial decisions, these lessons apply to everyone. You'll learn why discipline is crucial, how to face the reality of your financial choices, and why success can sometimes be your worst teacher. You can find show notes, resources and more at: https://tinyurl.com/y5besksw 

How much influence does a president truly have over the stock market? In this episode, we dive deep into the relationship between presidential powers and market performance, examining how different administrations impact the economy. While many believe the president has significant control over the markets, we explore whether the data backs that up, and how much external factors really shape the financial landscape. You can find show notes, resources and more at: https://tinyurl.com/3ehxpejd 

How does the Federal Reserve shape the economy, and what should you really know about its role? In this episode, Seema Sheth, Senior Vice President and Regional Executive of the Federal Reserve Bank of St. Louis, joins the conversation to share insights on how the Fed looks beyond the data to understand the bigger picture. She discusses her unique path to success and the importance of focusing on what you truly want to achieve rather than conforming to others' expectations. You can find show notes, resources and more at: https://tinyurl.com/2vn2t69b 

How can you become the multi-millionaire pilot next door? In this episode, we  discuss the principles of wealth building, inspired by the timeless lessons from the book The Millionaire Next Door. We'll explore how pilots, with our unique income trajectories and financial challenges, can apply these principles to build substantial wealth over time. You can find show notes, resources and more at: https://tinyurl.com/bdzxpwwd

Is the market overvalued and on the brink of an implosion? Join us as we dive into the intricacies of market valuation and investment strategies. In this episode, we're tackling some of the pressing questions about whether the market is currently overvalued, what market valuation metrics mean, and how investors can navigate these uncertain times. You can find show notes, resources and more at: https://tinyurl.com/96s6cshy

As the sun sets on the Tax Cuts and Jobs Act, the financial landscape for many, including our pilot community, is poised for significant changes. Join us as we dive into the upcoming tax reforms set for 2026 and how they may impact your finances.  You can find show notes, resources and more at: https://tinyurl.com/5bd9ndjm

What exactly is an activist investor, and how do they influence the companies they invest in? In this episode, we are joined by Andy Christopher, CFA, Lead Financial Planner, to explore the world of activist investors. You'll learn about their roles, the impact they have on companies, and whether they typically boost returns or create concerns.  You can find show notes, resources and more at: https://tinyurl.com/2kztm2be  

Are you chasing the right goals and prioritizing what truly makes you happy? In this episode, we discuss the importance of setting goals that align with your joy and fulfillment. Often, we achieve goals only to find that they don't bring the happiness we expected. It's essential to consciously identify what brings you joy rather than blindly following the paths others are on. We'll explore how to avoid the pitfalls of setting the wrong goals and the impact it can have on your overall well-being. You can find show notes, resources and more at: https://tinyurl.com/5fcsy44y 

How can aviation play a pivotal role in combating human trafficking? In this episode, Jared Miller, CEO and Co-Founder of Freedom Aviation Network (FAN), joins us to share the mission and impact of his organization. FAN is pioneering efforts to transport survivors of human trafficking and their advocates, offering their services completely free of charge. Listen in to learn how pilots volunteer their time and skills, and aircraft owners contribute their resources, to provide essential support for counter-human trafficking efforts, ensuring survivors reach safe shelters. You can find show notes, resources and more at: https://tinyurl.com/mry253yy 

Are you struggling to gain control of your spending and align it with your true values? In this episode, we explore a complete mindset shift to improve how you think about money. Lisa Rosenthal, Chief Operating Officer at Leading Edge Financial Planning, joins us to discuss how spending can impact marriages, lead to mistakes, and incur opportunity costs—both financial and emotional. Listen in to learn five strategies to align your spending with your mindset, how to align your money with your goals, and more. You can find show notes, resources and more at: https://tinyurl.com/5n86p3y4  

Have you ever considered buying a plane? In this episode, we dive into the complexities of such a decision and why it can't just be about saving on taxes. Contrary to popular belief, setting up an LLC or another corporation may not provide the tax benefits you expect. We explore the criteria for tax deductions and why expenses must be reasonable and directly related to business purposes. Additionally, we discuss the importance of evaluating your plans for using the plane, frequency of use, and geographical considerations to determine if buying is the best option.  You can find show notes, resources and more at: https://tinyurl.com/mvwvnczs 

How do you navigate the complexities of the economy and stock market? Andy Christopher, CFA, joins the show to shed light on the relationship between the two and provide insights into predicting market entry points with precision. In this episode, we aim to dispel common myths surrounding market dynamics to help you to protect your investments. From clarifying the role of the Fed to debunking misconceptions about presidential influence on markets, Andy offers practical advice on understanding and preparing for market fluctuations. You can find show notes, resources and more at: https://tinyurl.com/3zbbpas3 

Are you contemplating whether to enlist the expertise of a financial advisor as your income rises? In this episode, we dive into the pivotal question: Should you hire a financial advisor? We discuss how to evaluate and question potential advisors, shedding light on the crucial questions you must ask before making a decision.  You can find show notes, resources and more at: https://tinyurl.com/bd22j86d 

Today we're diving deep into credit card points, sharing highlights for both seasoned collectors and newcomers alike. Joining us is Mary Graves, who shares her journey into the world of point collection and how it can pave the way for a fulfilling retirement. Discover the strategic moves necessary to accumulate points without depleting your savings, and learn how to leverage them effectively for travel experiences. You can find show notes, resources and more at: https://tinyurl.com/3rr3hjsm 

With airlines finalizing new contracts and increased 401(k) contributions, the question of whether to invest in a Roth IRA has become a hot topic among pilots. In this episode, we aim to provide clarity on this complex decision and offer guidance tailored to various scenarios and limitations. From understanding who can contribute to a Roth IRA to delving into the concept of Roths, we explore considerations for first officers. You can find show notes, resources and more at: https://tinyurl.com/38ywhkfd 

Did you know that you're leaving a legacy, whether you realize it or not? Join us for an eye-opening discussion on legacy planning with Jon Cremer, Financial Advisor. In this episode, we dive into the impact of intentional legacy planning and why it's crucial to start thinking about it sooner rather than later.  You can find show notes, resources and more at: http://tinyurl.com/mryv6ysa 

Are you ready to explore the dynamic world of Real Estate Investment Trusts (REITs)? Dr. John Worth is an expert in economics and the Executive Vice President of Research and Investment Outreach in a REIT, and he joins us to share his deep understanding of REITs, their crucial role in a diversified portfolio, and how they perform in today's economic environment. You can find show notes, resources and more at: http://tinyurl.com/mzw84wsh

Tune in as The PMG's discuss the following financial aspects of the SWA 2020 Contract: Market-Based Cash Balance Plan, Tax withholdings for the Ratification Bonus Pay (RBP), New Life Insurance benefits, One-time SWA Profit Sharing rollover opportunity, and more!

Tune in as The PMG's talk about the following financial aspects of the SWA 2020 Contract:  Market-Based Cash Balance Plan Tax withholdings for the Ratification Bonus Pay (RBP) New Life Insurance benefits One-time SWA Profit Sharing rollover opportunity And more!

Join us for a deep dive into the complex world of taxes, where we'll dissect the mysteries of what's fraudulent, what's a gray area, and what's not only legal, but also incredibly smart. Discover why the allure of complexity may not be in your best interest and why trying to outsmart the tax man is a risky game.  You can find show notes, resources and more at: http://tinyurl.com/y74d8at9 

Kevin Gormley, CFP, CPA, PFS, and Lead Financial Planner at Leading Edge Financial Planning LLC., joins the show to help us explain the seven critical lessons learned in the tumultuous financial landscape of the past year. Brace yourself for a journey through bank failures, crypto turmoil, and market fluctuations that led to the collapse of major financial institutions, sending shockwaves through the industry. You can find show notes, resources and more at: http://tinyurl.com/5f9s9zux 

Unlock the secrets of successful investing as we pay tribute to the legendary Charlie Munger. A titan in the business world, Munger's principles for both investing and life are timeless lessons that can shape your journey to prosperity. Delve into the wisdom of a man who, alongside Warren Buffett, navigated the complex world of finance with hunger, humility and unmatched intellect. You can find show notes, resources and more at: http://tinyurl.com/u4dzk9be 

Explore the world of bonds with Jim Jackson, Co-Chief Investment Officer at Victory Capital. In this episode, Jim delves into the role bonds play in a diverse portfolio and the predictability of their performance compared to stocks. He also simplifies the complexities of bonds, emphasizing their mathematical nature in contrast to stocks, and challenges the financial industry's predictive shortcomings by opting instead for planning. You can find show notes, resources and more at: https://tinyurl.com/36upwv67 

When it comes to creating a positive environment for success, it's not just about investment returns—it's about your mental framework and decision-making. In today's episode, we explore how to identify whether you have a wealthy mindset, as well as what it means to embrace the KISS principle. You'll find out why being a lifelong learner is crucial and how treating all aspects of your life as investments can lead to both financial prosperity and happiness with a sense of abundance.  You can find show notes, resources and more at: https://tinyurl.com/5n94n9vc 

What should you do with unexpected financial windfalls, such as a bonus check or unforeseen extra income? Today we answer this question and address the essential balance between celebrating your financial wins and planning for the future, sharing valuable tips to avoid financial pitfalls and the importance of building a robust emergency fund. Listen in to learn how to make the most of unexpected financial gains and more. You can find show notes, resources and more at: https://bit.ly/3QGFghf 

Discover the secrets to a harmonious marriage and a prosperous financial life in this engaging panel discussion. Join us as we sit down with our team members at Leading Edge Planning, including Betsy Wheeler, Paraplanner, Kevin Gormley, Principal, Jon Cremer, Financial Advisor, and Nolan Clark, Paraplanner, to explore the intricate relationship between marriage and money.  You can find show notes, resources and more at: https://tinyurl.com/mwjvtm5p 

In this episode, we have the privilege of hearing the remarkable aviation journey of Roger Lance, a retired Air Force officer and Vietnam War veteran. Roger takes us on a captivating flight through his experiences, from his early days in aviation to the intense moments in the war. He provides a glimpse into the different aircraft he piloted and shares his favorites, shedding light on the competitive yet camaraderie-filled world of flying. You can find show notes, resources and more at: https://tinyurl.com/3hcuyejp 

Today we're joined by investment expert Andy Christopher, a Naval Academy graduate and F-35 Contract Instructor Pilot, and Sunil Wahal, a Professor at Arizona State University and Consultant to Avantis Investors. Together, they shed light on the intricacies of investing, emphasizing its profound connection to life itself, and the importance of self-awareness, helping you calibrate your risk tolerance and assess potential risks in your investment portfolio. You can find show notes, resources and more at: https://tinyurl.com/nk7yz5sk 

Meat of the Mission – Five Ways to Avoid Getting Hacked with Cyber Hunter Akiva Clark  Always use Multi Factor Authentication. (MFA)  Use different emails for more or less security sensitive accounts.   Password strength is critically important.     Use password manager.  Freeze your credit – Click here to see specific instructions from Nerd Wallet to freeze/lock your credit at all FOUR credit reporting agencies.   

Flight #63 - Dumb Things Smart People Do with Money Questions from the flight deck: ·        Next year all 401k catch up contributions will be Roth.  How will this affect your taxes? ·        https://www.kiplinger.com/taxes/the-problem-with-401k-catch-up-contributions o   Under SECURE 2.0, if you are at least 50 years old and earned $145,000 or more in the previous year, you can make catch-up contributions to your employer-sponsored 401(k) account. o   But there's a catch. You would have to make those extra contributions on a Roth basis, using after-tax money. o   You wouldn't be able to get tax deductions on those catch-up contributions as you would with typical 401(k) contributions, but you could withdraw the money tax-free when you retire. Dumb Things Smart People Do with Money ·        Vanguard's Advisor's Alpha – They say most value is from behavioral coaching. o   https://advisors.vanguard.com/advisors-alpha#overview ·        Buy High – Sell Low – why? ·        Example: Value investment premium – Part of premium could be from our human behavior that seems to persist and is not arbitraged away.  o   “According to the behavioral school of thought, human tendencies are behind the existence of the value premium. Many investors are lured by the appeal of companies with exciting growth stories and prospect of strong short-term returns, while being deterred by those that receive little fanfare or are unloved by the masses.” §  From article by Investment Firm Robeco. ·        “Human instincts drive the Value premium” ·        Recency bias – Recency bias is the tendency to put too much emphasis on recent events, such as a stock-market rout, the meteoric rise of bitcoin or a meme stock such as GameStop, for example. o   The “Lost Decade” is mostly ignored due to lack of recency.      o   “The term “Lost Decade for Stocks” refers to the ten-year period from 12/31/1999 through 12/31/2009, when the S&P 500® generated an annualized total return of -0.9% over the period. This was only the second time that the market actually had a negative total return over a decade period.” ·        Average investor performance vs. The investment's performance – ARKK. o   See Pilot Money Guys Podcast/Flight #30 “Chasing Hot Stocks – Investing in the Rearview Mirror” ·        Morningstar's “Mind the Gap...”  https://www.morningstar.com/lp/mind-the-gap ·        Morningstar Article:  “Bad timing cost investors one fifth of their funds' returns”  Morningstar investor research firm recently published an article titled, “Bad Timing Cost Investors One Fifth of Their Funds' Returns

  Airline/Aviation News:  United AIP, American, FedEx AIP segway    Questions From The Flight Deck:  What if age 67 passes? What is Hybrid retirement?  https://www.nbcnews.com/news/amp/rcna95349  The Senate still needs to pass its own version of the bill before the current authorization expires on Sept. 30. Make an intentional decision - I.e., plan. Those that do not plan – life happens to them, and they get angry and bitter. If you're squarely “in the green” - Retire!  70% - 90%  If you LOVE flying – fly part time. If you don't love slipping the surely bonds BUT you're on the financial bubble – Hybrid retire. Do NOT save in your retirement accounts!  Additional $30k plus in your pocket for spending. Fly part-time – 1-2 trips per month. 2 years of NO retirement distributions:  ~8% improvement or more income VSP ~ $1000 per month 5 years  Social Security Strategy – wait till 70? Insurance against bad stock market $7mm left over versus $4mm       Meat of the Mission:    What is a cash balance plan?    Cash Balance Plan Basics:  Pension-like, Hybrid...DC versus DB.    Big picture – a better way to save more money!  Is it guaranteed or not?  Fiduciary responsibility.  Market-based plans are a type of cash balance plan where the account's growth is tied to the actual return on plan assets. This contrasts with a traditional cash balance plan that typically has a fixed interest credit rate.  Pros/Cons in relation to 401k, in relation to Pension.   MBCBP – may underperform...  Think annuity-like versus market like...what does the average investor get for investment returns?   Flexible – unlike Non-Qualified “spill-over” plans    Differences at airlines? Decision points for FedEx, Delta, American etc. https://www.msn.com/en-us/money/companies/american-airlines-pilots-want-bargaining-do-over-after-united-bests-on-pay/ar-AA1e5RMo   

Questions From the Flight Deck: What do we do with large retro/bonus checks? Is a cash balance plan any good?   Meat of the Mission: Never spend more than they make. How? Habit Patterns... What type of spend Spend money on fun stuff; Leisure, fun, travel Don't spend money on stuff that does not add value – cut it out. YNAB, EveryDollar, or other apps. https://www.iwillteachyoutoberich.com/ Amelie Riendle Podcast (Flight #44 and Flight #27) Prepare more, plan more... What do you want to do in retirement? You can only sit on the beach or play golf so much. The #1 thing people do in retirement is watch television! Michael Finke. Know your retirement needs...it's expensive! Start a financial plan now to know your “number” for how much to save to meet your retirement financial goals. Don't let it be a lingering question. Simulate (software), practice...take some time off and live on the retirement budget. Deliberation, Planning, and Intention in and of themselves make people happier in retirement: (Michael Finke) E.g., Those that retire in accordance with their plan vs. Forced retirement. Both experience happiness, but forced retirement is a delayed happiness (3- 4 years). E.g., Those that move after retirement...not b/c they move but because they had a deliberate plan with intentionality. Control vs. Out of Control??? Michael Finke says “Invest in Imagination” Never compromise their health: exercise and eat right. Exercise not only helps you feel better in retirement but also helps mental capacity and cognitive health. Flight #58 Exercise and the Brain: The Neuroscience of Fitness Explored. “Exercise stimulates neurogenesis – the creation of new neurons – primarily in the hippocampus, influencing memory and learning while increasing key mood-regulating neurotransmitters. It also enhances brain plasticity, essential for recovery from injury and aging, and improves cognitive functions such as attention and memory.”  Estimated that average couple will need $315k to cover medical expenses in retirement, excluding LTC (https://institutional.fidelity.com/app/item/RD_13569_42402/retirement-planninghealth-care-costs.html) Invest more in their relationships and always work to build new connections. (Michael Finke) “Dude...you're not as good at retirement as the women are.” Invest in relationships outside of work. Strongest predictor of life satisfaction during retirement: Relationship with your spouse – huge impact, good and bad. Highest statistical significance. Marital counseling to prepare...? (Valuable investment)  Friends – Second highest statistical significance. Your kids – not as significant...statistically and FB comments online.  Takeaway – Invest in your marriage...invest in friendships outside of work.  Plan, prepare for taxes...it is a large (frustrating) expense What are the financial AND emotional costs of paying too much taxes in retirement? RMDs – when not needed? Legacy planning: Roth, 529, Brokerage account. Practical side: HSA, Roth, Cash, Taxable Brokerage The right mindset – what is money? It does not make you happy... Money is paper or numbers on a computer screen...E.g., bricks to build a house. Pre-Retirement: Don't allow money to make you miserable... Examples of how money ALONE has made people miserable By chasing after it too much...like a trophy Airlines are great b/c fly more = more pay. BUT... Money is a tool to reduce stress and increase your enjoyment...there are other tools! Post-Retirement: It's okay to spend your retirement money on frivolous stuff... Example, people spend from pensions but not on IRAs, 401ks. Defined Contributions versus Defined Benefit. Finke example: Mom has a pension and spends every dollar happily, but refuses/hates to draw from her IRA Understand what truly DOES make you happy in retirement – you must invest in these three things: Finances Health Relationships Realize there are things that you cannot control – Realize that you have more control (of other areas) than you realize: Example – Short-term stock market gyrations versus your own personal inflation. Example – Our country's debt crisis – saving more to prepare. Example – Higher inflation and taxes in the future – save more to prepare. If things go really badly – you'll be glad you prepared, saved, etc. Example – MGP “bad timing” scenario – 2008-type retirement for airline pilots at age 60. Be an Ant during working years and be a Grasshopper in retirement (up to a point). Though Aesop's fable is regarded as a lesson in thriftiness, “grasshoppers” are likelier to smooth their spending over their lifespans. Don't wear thriftiness as a badge of honor- you saved to consume later- hint, it is now later! (https://www.aaii.com/journal/article/grasshoppers-and-ants-in-retirement)  Don't compare (especially finances) – live someone else's values. Comparison is the thief of joy! From this article: “Feelings of jealousy, frustration, and hopelessness emerge if comparisons continue. If left unaddressed, chronic anxiety and depression can stem from such behavior.” Avoid comparing other peoples' "outsides" to your own "insides"  When, if ever, is it okay to compare yourself to someone else? How to prevent comparison from limiting your success and peace of mind? Even if we do not want to think about it, our mortality is real. Should we spend the money today or wait until tomorrow? How many pieces should I cut “the financial cake” into not knowing how many years we shall be here. Very few get to spend the last dollar at the last second of life. How do we create a good retirement under so much uncertainty? Consider your legacy not “at the end of life” but 50 years from now. Helps to consider mortality and legacy that you want to leave financially.

Questions From The Flight Deck: Introducing: Andy Christopher – F18 Navy Fighter Pilot and Investment Advisor Background How'd you get interested in flying? Why the Navy? Navy flight experience. Ejection story – first flight!?!   Meat of the Mission – 529s Common Questions: What if my kid gets a scholarship? Do I need to invest in my state's 529? No! What if I overfund the 529? Can I give my 529 to my child? How does the 529 affect financial aid? Can I use the 529 for United, Delta, SWA feeder schools – aka career development programs. United Aviate Delta Propel Program  SWA Destination 225 Should I just use the Roth IRA? Roth 401k? The major difference between Roth IRA withdrawals and Roth 401k withdrawals: There is one catch, though. Early withdrawals have to be prorated between (nontaxable) contributions and (taxable) earnings. To calculate the portion of the withdrawal attributable to earnings, simply multiply the withdrawal amount by the ratio of total account earnings to account balance. U.S. Department of Labor. “401(k) Plans for Small Businesses Supplement.” Why save for college? College Tuition Inflation Statistics | BestColleges  Tuition increases over time have traditionally outpaced inflation Avoid student loan debt (for parents and children) One of the most expensive “investments” in one's life 529 basics  Similar to Roth IRA: After-tax money in, tax-free money out when used for qualifying tuition expenses FAFSA: Does a 529 plan affect financial aid? - Savingforcollege.com  Any parental assets beyond that amount ($10,000) will reduce a student's aid package by up to a maximum of 5.64% of the asset's value. So, if a parent's 529 account exceeds the Asset Protection Allowance by $10,000, his child's financial aid award could be reduced by as much as $564. Which plan to pick? What Is a 529 Plan? - Savingforcollege.com Don't have to use your state's plan, but may be reasons to use in-house plan Unique plan rules for transfer of ownership, total account value limits for contributions State tax benefits (OH) E.g., Virginia residents – tax deduction PER ACCOUNT, age 70 rule and tax deductions carry forward... Low-cost plans (Utah my529, W VA, etc.)  How much to save?  Vanguard Savings Calculator Rule of thumb: Public vs. Private Scholarship Other sources of funding: grandparents, GI Bill, etc. "Superfunding”: 10 Rules for Superfunding a 529 Plan - Savingforcollege.com How to invest the contributions? Low-cost/index approach Target-enrollment date (works like a 401(k) target-date fund) What if you don't use the funds? Estate Planning Considerations: Dynasty 529 Plan For Multigenerational College Expenses (kitces.com) Secure Act 2.0 Changes: The SECURE Act 2.0: The Most Impactful Provisions #10 — Moving 529 Assets to a Roth IRA - Fred Reish Withdrawal Options: Penalty-free (not tax free) for service academies, scholarship, death/disability Changing beneficiaries Veteran Benefits GI Bill Transfer State Specific Benefits (CalVets, etc.) Hazlewood Act - Through the state's Hazlewood Act, originally approved in 1943, Texas promises its veterans or their survivors 150 free credit hours at any of the state's public universities or community colleges, once their federal benefits have been exhausted. And vets may transfer hours they don't use to their children. Hazlewood benefits are available to veterans who currently reside in Texas and who lived in Texas or had Texas as their home of record at the time of enlistment, or who simply enlisted in Texas.   1. Vanguard college funding calculators  https://vanguard.wealthmsi.com/csp.php 2. Leading Edge 529 video https://youtu.be/Br4ws8waxDQ 3. Morningstar College report, comparison. https://www.morningstar.com/personal-finance/best-529-plans-2023 

Airline News: Pilot retirement age 67!!! Maybe... https://www.usnews.com/news/us/articles/2023-06-14/u-s-house-panel-votes-to-raise-commercial-pilot-retirement-age-to-67#:~:text=%22While%20commercial%20airline%20pilots%20are,help%20address%20a%20pilot%20shortage The pilot age proposal faces opposition from unions and an uncertain fate by a U.S. Senate committee, which will consider its version of the FAA measure on Thursday and does not currently include the pilot age hike. The Air Line Pilots Association (ALPA) opposed raising the retirement age and says it could cause airline scheduling and pilot training issues and require reopening pilot contracts. Even if the proposal is approved, the union noted that international rules would still prevent pilots older than 65 from flying in most countries outside the U.S. ALPA called the proposal a "politically driven choice that betrays a fundamental understanding of airline industry operations, the pilot profession, and safety." American Airlines pilot sues over ESG funds in his 401k. “The complaint by American Airlines pilot Bryan Spence was filed on June 2, 2023, in federal court in Fort Worth, Texas, against American Airlines, its employee benefits committee, Fidelity Investments Institutional, and Financial Engines Advisors.” “...the suit is significant because it concerns one of America's largest pensions, takes aim at new federal guidance involving retirement plans, and may affect the plan's self- directed brokerage account option, also known as the brokerage window. The brokerage window is the part of a plan that lets participants invest in funds and publicly traded securities outside the limited menu on offer. In 2021, the American Airlines plan brokerage window reportedly had 12% of the plan value.” “What's concerning about this lawsuit if it goes anywhere, is it suggests there is some sort of fiduciary obligation to vet individual funds and individual securities available through a brokerage window,” Hadley says. Attorneys for the plaintiff didn't respond to requests for comment.”   Questions From The Flight Deck: What are the best wealth building habits we've seen and learned in our experience working with clients? I've stopped investing...tired of throwing good money after bad.   Meat of the Mission: How to think about LTC...mindset. Hard to plan for your 85-year-old self... Four options/basis types: Standard LTC insurance – pay monthly, forever Premiums increase, strict medical screening. Use or lose...not totally true, always. Annuity – increased payouts Do you need an annuity? Payout doubles for a few years... Hybrid Life Insurance – 2nd to die...or individual policy. Life insurance or LTC insurance. Self-Funding... Plan for it... Set aside the funds and name it! Tax Considerations VA Benefits https://www.va.gov/health-care/about-va-health-benefits/long-term-care/ Private Pay: Even though VA, Medicare, Medicaid and other funding sources cover the costs of some long-term care services and settings, depending on eligibility, many people need to use their own income or savings to pay part of the costs for long term care services or settings they need or prefer. For example, people often use their own resources to pay for: Residing in an Assisted Living Facility or Adult Family Home Paid caregiver assistance with personal care needs, chores, or meals in their home Medicaid Trusts? Medicaid trusts are designed to help people qualify for Medicaid, the government health insurance program. Unlike Medicare, which is not means-tested, Medicaid is only available to people of limited financial means. The program is administered by states, which determine their own Medicaid eligibility requirements in a variety of ways. In most, the annual income limit is $29,160 or less. This cap includes Social Security and pension benefits as well as wages and investment income. Financial resources such as bank accounts, investments, revocable trusts and real estate typically can't total more than $2,000. People who have more income and more assets may have to spend their own assets to pay for nursing home care until their assets have declined to the point, they meet the Medicaid caps. An irrevocable Medicaid trust is designed to help someone qualify for Medicaid without having to deplete their own assets. After creating the trust, they can transfer in enough assets to bring them below Medicaid's caps. Once they have done that, assuming they have followed the rules, Medicaid will pay some or all of their nursing home costs. In this way, an irrevocable trust can protect assets from nursing home costs.   Sources https://www.morningstar.com/sustainable-investing/pilot-sues-american-airlines-others-over-esg-funds-his-401k https://www.morningstar.com/personal-finance/100-must-know-statistics-about-long-term-care-2023-edition  Yahoo Finance on Irrevocable Trusts for LTC Is Long-Term Care Insurance Tax-Deductible? - SmartAsset Do You Have to Pay a Long-Term Care Tax? - SmartAsset https://www.va.gov/health-care/about-va-health-benefits/long-term-care/  https://www.aaltci.org/long-term-care-insurance/learning-center/long-term-care-insurance-partnership-plans.php 

Airline News: American Airlines, FedEx Agreements in Principle: AIP...    How To Think About Your Health And Improve Your Quality Of Life Now And In Retirement Sources:   Financial wellness can increase the quality of your physical health. High levels of financial stress manifest through physical symptoms like sleep loss, anxiety, headaches/migraines, compromised immune systems, digestive issues, high blood pressure, muscle tension, heart arrhythmia, depression and a feeling of being overwhelmed. Can induce feelings of happiness. Enhances the quality of your sleep. Physical activity is often associated with reduced symptoms of depression and anxiety. Exercising is critical for airline pilots due to the sedentary lifestyle of flying and traveling.    How:   You must be intentional.  What's the best diet/eating habits?  What's the best exercise routine?  The one that you'll do! What you are able to make part of your lifestyle.    Without a plan, you will drift... to bad nutrition and exercise habits.  Hire a fitness instructor. Also, develop an eating plan. Especially plan for days on the road.  It's not your age that has you feeling the need to rest -- it's that you're not moving. Even older adults with serious health problems -- heart disease, diabetes, arthritis, and others -- can live better lives by getting up and moving.    Resources:  https://neurosciencenews.com/fitness-neuroscience-23228/  https://www.purdue.edu/hr/CHL/healthyboiler/news/newsletter/2020-01/finances-health.php