Financial Advisors for Pilots

Between multi-state tax filing, fixed retirement schedules and aviation dynamics, airline pilots have more than their share of financial challenges. In addition to managing the insecurities that stem from a sometimes-volatile industry, pilots should be aware of the tax credits and deductions specific to their profession as well as insurance requirements.

Consider working with a financial advisor who can provide guidance and expertise specifically to meet pilots’ financial needs.

What Is a Financial Advisor?

A financial advisor is a professional who has expertise in financial management, including taxes, estate planning and investing.

While anyone can call themselves a financial advisor, financial advisors often earn certifications that show their proficiency. There are no specific educational requirements, but lawyers and accountants sometimes become financial advisors due to the nature of their work. Additionally, many financial advisors begin their careers at established financial firms to develop their skills by working with seasoned financial advisors and experts.

Because of pilots’ complex state tax circumstances, finding a financial advisor who specializes in taxes might be a good idea. For example, a financial advisor who is a certified public accountant (CPA) can offer you guidance when untangling tax problems and questions and make sure that your finances are properly protected.

Financial Examples Pilots May Want to Plan For With an Advisor

Pilot income can vary meaningfully from year to year based on flight hours, schedule changes, training assignments and fleet transitions. A financial advisor can help establish baseline savings targets, structure emergency reserves and adjust tax withholding so core expenses and long-term contributions remain consistent even if pay fluctuates.

Airline pilots face a mandatory retirement age that creates a defined endpoint for primary career earnings. A financial advisor can project retirement income needs and model balances in workplace retirement plans and IRAs. They can also coordinate expected pension benefits and Social Security claiming strategies to map sustainable income after flight pay ends.

Multi-state taxation is common for pilots who live in one state, are based in another and earn income across several jurisdictions. A financial advisor can coordinate resident and nonresident state filings, review withholding levels and help track income sourcing so total tax liability aligns with actual obligations.

Loss of medical certification directly affects a pilot’s ability to work. A financial advisor can evaluate disability options, review employer-provided coverage versus private policies and structure life insurance so household obligations remain supported if flying income stops earlier than expected.

Later-career transitions into training, management, corporate aviation or consulting often involve different pay structures and benefit packages. A financial advisor can compare retirement plan options, analyze health and insurance benefits and help integrate new income streams into an existing long-term financial plan.

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How Much Does It Cost to Work With a Financial Advisor?

On average, financial advisors fees average 1% of the assets managed, but it varies by services received, the firm you use and how much you invest. Usually, services rendered include tax assistance, investing services, wealth management and financial planning.

It’s also possible that a financial advisor may receive commissions for certain investments or services in addition to their fee for assets under management (AUM), so make sure you get the full picture before committing to a financial advisor.

Additionally, some financial advisors charge an hourly or annual fee instead of a percentage. Others may make money purely on investment commissions, possibly putting the profitability of specific funds ahead of your best interests.

You can decide to work with a fiduciary, which is a financial advisor legally bound to put your interests first. However, it’s still crucial to know precisely how your financial advisor makes their living so you can find one you are comfortable with.

If you’re looking to reduce fees, a robo-advisor may be the ideal service for you. Usually, a robo-advisor will charge between 0.25% and 0.5% of the assets managed, halving your cost while still providing financial guidance and investment advice. However, since pilots face industry-specific challenges such as medical stipulations and forced retirement at 65, a robo-advisor may provide insufficient information and support.

How to Find a Financial Advisor for Pilots

As with many financial services and products, shopping around is best instead of going with the first advisor you find.

When beginning your search, it is easy to become overwhelmed by the number of financial advisors available. These tools can help you find the right qualified financial advisor for your needs.

Industry tools. SmartAsset’s free financial advisor matching tool can streamline your search. After answering a few questions, you can match with up to three local financial advisors and then interview each of them personally to determine which one is the best fit for you – all at no cost.
Referrals. Trusted family, friends and co-workers can provide excellent suggestions for a financial advisor. You can also ask a colleague if they have a financial advisor who serves pilots, as they are likely to specialize in your field.
Databases. Online databases have up-to-date information on financial advisors in your area. You can look at the web-based search features of organizations such as RAA, Garrett Planning Network, XY Planning Network, Certified Financial Planner Board of Standards, Financial Planning Association (FPA) and National Association of Personal Financial Advisors (NAPFA).

Key Considerations for Hiring a Financial Advisor

When gathering recommendations and viewing financial planners online, you can apply a plethora of criteria to help you find the right financial advisor for pilots. These are some important factors to consider when making your decision.

Credentials

Credentials are a way for financial advisors to show off their knowledge and understanding of the services they provide. Financial advisors with these credentials may best serve even your more complex needs.

Other Considerations

While the credentials of your financial advisor can be a very important consideration, there are other considerations to help narrow down your list:

Company size. 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, the scale doesn’t necessarily indicate less personalization, and a company’s larger size might indicate its success and efficiency with a robust client base.
Expertise. Certifications can help you choose a financial advisor, but following up with questions about their field of knowledge can help you further. Any financial advisor should 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 may complicate filings. A financial advisor should be able to address all your tax issues and questions.
- Retirement. Your mandatory retirement age is a significant factor in your retirement planning and financial wellness.
- Investing. 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 with budgeting and accomplishing your financial goals.
Minimum requirements. Some financial advisors and financial management firms require their clients to bring a specific amount of money to the table. Minimum investment requirements can range from $50,000 to $1 million, so if you’re early in your career, you may not qualify to work with some financial advisors.
Fee structure. Fees are a top factor when choosing a financial advisor. Working with a financial advisor without understanding how they make money can breed mistrust, miscommunications and stress. Selecting a financial advisor you’re comfortable with not only paying, but paying in a specific way, can give you confidence, trust and peace of mind.

Questions to Ask Financial Advisor Candidates

When interviewing financial advisor candidates, you can ask each one the same set of questions to get a sense of who can serve your needs. These questions should help you better understand their expertise related to the airline industry and how they can help your unique financial needs.

Do you have experience working with pilots?
What certifications do you have, and what clientele do you primarily serve?
Are you familiar with multi-state tax returns for pilots?
Are you a fiduciary?
Do you have any disclosures, such as criminal activity or customer complaints?
What services do you provide?
What fees and costs do you/your firm charge?
What’s your investment style?
How frequently can I expect communication from you?

Bottom Line

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

Financial Advisor Tips for Pilots

As a pilot, you have specific financial needs only certain financial advisors can address. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Are you ready for age-based retirement? Investing for your golden years can be daunting, but it pays to jump on it as soon as possible. Use the following guide for strategies for retirement income.