An Investment Fiduciary
Pilotmoney
INVESTMENT PLATFORMS
Access to Retail And Institutional
Investment Platforms
Investment Platforms Overview
As an objective, independent, and non-proprietary Retirement Wealth Planning firm, Aviation Retirement Strategies, LLC., has virtually no limits on the types of investment platforms available. In the financial world, there are basically two broad categories available to investors: retail and institutional investment platforms.
Retail Platforms
Retail platforms are self-directed and consist of brokerage accounts that allow investors to buy and sell securities. Our access to retail brokerage services also gives us the ability to provide our clients with comprehensive research and analysis of stocks and mutual funds. From a fee standpoint, these accounts are transaction based, along with the standard commission structure being paid each time a security is traded.
For Pilots who hold Fee-Based accounts with us, we discount these transactions.
Institutional Platforms
At Aviation Retirement Strategies, LLC., we utilize several types of institutional platforms for customized portfolios. The primary differences between these platforms are the applicable minimum investments, fees, tax efficiencies, and whether or not the client is seeking downside protection along with other types of guarantees.
According to your Retirement Wealth Plan, we will provide guidance on the platforms best suited for achieving your long-term goals.
Institutional platforms are the most commonly utilized platforms at Aviation Retirement Strategies, LLC., and are often referred to as “Fee- Based” or “Wrap Accounts.”
Fee-Based Guidance
As a Pilot and an investor, you need a financial portfolio that is not just a collection of securities and accounts—it is an investment you depend on to help fund the goals you have for your life. Institutional investment platforms allow us to work with each Pilot and his or her family to create a unique portfolio that meets their ever-changing needs. This highly customizable program combines innovative investment strategies along with leading investment managers in one account.
A long-term approach to investing, Fee-Based asset management ties our compensation directly to the value of your account. We earn an annual fee, based on your account’s market value. This way, you and Aviation Retirement Strategies, LLC., share a common goal; to grow the value of your assets. Together, we can concentrate on what matters most—building an investment portfolio designed to help address your specific needs.
We earn an annual fee, based on your account’s market value.
Customization
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One of Aviation Retirement Strategies, LLC’s distinguishing hallmarks within our institutional investment platforms is our capacity to customize portfolios for each Pilot.
Institutional Private Asset Management
Aviation Retirement Strategies, LLC., has the ability to employ the same tax efficiency and flexibility used by large institutions and pension plans for their investments and offer them to Pilots. For those accounts that meet a $250,000 minimum, we offer access to a Fee-Based platform, Personal Wealth Portfolios (PWP) through LPL Financial. Unique features of this platform include:
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Low fees
Access to separate accounts
Portfolio customization
Tax management/harvesting
Detailed performance reporting
Separate Accounts: Customized for Maximum Flexibility
Aviation Retirement Strategies, LLC., also has the ability to employ separate accounts within the same account as other assets.
Separately-managed accounts offer the features of individualized, professional money management combined with the benefits of owning individual securities. Typically employed by large institutions and pension plans, separate accounts provide the advantages of flexibility, tax efficiency and control to your portfolio. The main benefits of investing in separate accounts include:
Ability to incorporate tailored tax-management strategies
Ability to screen securities based on ethical considerations
Access to institutional money managers
Direct ownership of securities
Portfolio Customization
Through the direct ownership of securities, the separate accounts service we offer access to gives Pilots greater flexibility to customize their investments.
By working with the Overlay Portfolio Manager, we will be able to administer restrictions on individual securities or social classes of stocks based on each Pilot’s preferences.
For example, you may wish to exclude stocks or another security to which you already have significant exposure. Or, on the basis of social and/or personal considerations, you may choose to exclude a security or an industry.
While separate accounts have many benefits, they are also subject to risks, including loss of principal.
Tax Management
With respect to your separate account assets, Aviation Retirement Strategies, LLC., offers the potential to minimize unnecessary tax exposure. Through overlay portfolio management, we work to help you achieve tax optimization for your portfolio through the following strategies:
Tax Harvesting: You have the option to sell specific shares (tax lots) where the cost basis is more favorable from a taxation standpoint. In addition, sales are monitored to avoid the unnecessary realization of short-term gains.
Tax Management Strategies: Transactions in your account are implemented with a view toward minimizing tax consequences.
Detailed Performance Reporting
To help keep you abreast of your investment portfolio’s performance, a detailed performance report is delivered to you on a quarterly basis. This report includes a summary of the performance of your overall portfolio, as well as each asset component and a breakdown of realized gains and losses.
You Choose...
As a trusted advisor to many Pilots, we consider it is our responsibility to maximize the potential of realizing your financial goals.
In crafting your Retirement Wealth Plan, we will decide together which structure best suits your needs. We will lay out all of your options and provide you with the information required to make an informed decision as to which investment platform will help you pursue your goals. Once the decision is made, you will receive institutional asset management, financial advice, and customer service through our talented team of professionals.
Regardless of your investment objectives, your portfolio will be constructed to reflect your personal goals, time horizon, and risk parameters. Portfolios can be created with a goal to minimize the tax consequences of investing, address current income needs, protect your retirement assets, or seek capital appreciation.
Aviation Retirement Strategies, LLC., will formulate an asset allocation plan based on the combined performance attributes of the individual asset classes. Your portfolio may include but is not limited to stocks, bonds, conservative option strategies, cash equivalents, or a combination of these vehicles. What’s more, you have the ability to include investments you already own, such as long-held performers.
Important Features of Our Asset Management Capabilities: The Next Level
Independent Research
Aviation Retirement Strategies, LLC., is supported by one of the largest independent research organizations in the industry, LPL Financial. With access to timely, detailed information, computer modeling tools, and market intelligence, we make informed decisions on your behalf. We are not bound by the constraints of proprietary products, investment banking relationships, or other activities that may be inconsistent with your goals. We will thoroughly analyze the research provided and select those investments best suited to your unique financial situation.
Asset Allocation
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Whatever your destination, a solid investment program can help speed your progress. The core of any successful approach to investing is the strategic allocation of assets.
Strategic asset allocation3 involves spreading your investments across several asset classes—such as stocks, bonds, and cash equivalents—to reflect your particular objectives. Asset allocation also allows your portfolio to participate in a variety of market sectors, which potentially minimizes overall volatility. Throughout all cycles of the financial markets and regardless of your investment objectives, a well-devised and executed asset allocation strategy is central to helping you pursue your long-term goals.
Our investment platforms allow Pilots to take advantage of strategic asset allocation, a time-tested approach to constructing portfolios.
The process encompasses setting investment objectives, establishing weightings for various asset classes, choosing specific investments, and making adjustments as circumstances dictate.
To further diversify the equity portion of your investments, we have the ability to combine large-, mid-, and small-capitalization stocks; growth and value-oriented securities or core blends; international equities; and alternative investments. This allows you to take advantage of a variety of market environments while helping to minimize the downside risk of any one investment in your entire portfolio.
Whatever your destination, a solid investment program can help speed your progress. The core of any successful approach to investing is the strategic allocation of assets.
Investing involves risk including loss of principal. No strategy or plan assures success or protects against loss. Asset allocation does not ensure a profit or protect against a loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk.
Ongoing Management
Your portfolio will be reviewed on a periodic basis and adjusted when needed to help maintain the optimal allocation of your investments. Portfolio rebalancing is a critical component of the strategic asset allocation process and essential to the long-term success of your portfolio.
Rebalancing is designed to ensure that the allocation of your assets remains in line with your stated investment objectives.
Because the relative performance of various asset classes will vary, portfolios that are not reviewed on a regular basis tend to drift from their target allocations. A portfolio that is not regularly rebalanced could assume a risk/reward profile that is not in keeping with your investment objectives.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against loss.
Account Protection
The LP Financial SIPC Membership provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be claims for cash. An explanatory brochure is available at www.sipc.org.
Additionally, through London Insurers, LPL Financial accounts have additional securities protection to cover the net equity of customer accounts up to an overall aggregate firm limit of $575,000,000 subject to conditions and limitations.
The account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities clients, but does not protect against losses from the rise and fall in the market value of investments.
Fees
On average, our advisory fees will generally be about one percent. Advisory fees can range from .25%- 2.00% depending on the size and composition of a client’s portfolio, and type of services rendered.
Sample Retirement Plan Account Structure
(varying risk tolerances and investment goals)
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For more information on our fee structures, please do not hesitate to contact our office at 281-272-2229.
Aviation Retirement Strategies, LLC., provides a foundation for fostering a long-term relationship with an investment professional and most importantly, a commonality of purpose and meaning. In the same way, our clients invest with us for the long term, we invest in our clients for the long term. One of the ways we do that is by maintaining our low fees. We understand that if we do everything in our power to nurture the special relationships we enjoy with our clients, then together we will be a better company going into the future. We invest in our clients, knowing that a long-term relationship is more lucrative than a single transaction.
Our compensation is also directly relative to the value of your account. From a fee standpoint, as with your financial goals, we have a common objective— to see your assets grow.
As each Pilot’s portfolio is individually customized and managed, the fee structures will vary based on the client’s risk tolerance. Usually, a more conservative investment will have fewer fees associated with it and vice versa with a more aggressive investment. Also, account type and size will have an impact on the fees that are imposed on it.
Regardless of your portfolio structure, our fees always include all of the basic services that we provide for our Pilots.
These services include, but are not limited to the following:
Estate Planning (Review and execution of current documents titled personal assets and accounts
Comprehensive Retirement Wealth Planning (Accumulation, Distribution, and Transfer)
Document drafting provided at the same low rates we would pay
Portfolio Analysis & Optimization
Qualified Plan Beneficiary Planning (401(k) B-Plan and CPRP)
Pre-Retirement 401(k) Advice
Exclusive client functions
Unsurpassed customer service
Stock Option Planning
Tax Planning Strategies
Because of our degree of customization in each client’s portfolios, it would be impossible to list, in detail, all fees associated with each account. On average, however, our advisory fees will generally be about one percent. Advisory fees can range from .25%- 2.00% depending on the size and composition of a client’s portfolio, and type of services rendered.
Also, your Retirement Wealth Plan will be unique to you and your family and your total investment costs will be illustrated in your formal proposal.
Our recommendation for any type of investment account structure is strictly based on working towards the goals and objectives set forth in your long-term Retirement Wealth Plan.
Different account structures will have varying degrees of efficiencies during your pre and post-retirement years. This means that each account recommended must have a specific purpose to serve you in the three phases of retirement: Accumulation, Distribution, and Transfer. For this reason, most of our clients will have a combination of all or part of these types of accounts.