RAA is a financial advisor firm headquartered in Addison, Texas with more than $2.5 billion in assets under management (AUM). The firm works with over 3,200 clients, including individuals, high-net-worth individuals, charitable organizations and corporations. RAA was founded to provide financial services specifically tailored to pilots and others in the airline community. That mission continues to this day.
As a fee-only firm, all of RAA’s earnings come from advisory services provided to clients. This is in contrast to a fee-based model, in which a firm earns commissions or other outside forms of compensation (which can present a conflict of interest).
RAA opened for business more than 30 years ago. Today, the firm is principally owned by HBC Investments, a private equity firm, and John Bentley, the firm’s CEO. RAA is legally known as PHH Investments, Ltd.
RAA’s large team of 83 advisors boast a wide range of advisory certifications. To name a few, you’ll find certified investment management analysts (CIMAs), certified financial planners (CFPs), certified public accountants (CPAs), accredited investment fiduciaries (AIFs) and chartered retirement planning counselors (CRPCs) among the firm's advisory staff.
What Types of Clients Does RAA Accept?
More than 99% of RAA’s client base consists of individuals and high-net-worth individuals. The firm works with a few charitable organizations and corporations as well.
RAA Minimum Account Sizes
RAA generally imposes a minimum account size of $250,000. However, the firm may decide to waive this requirement at its discretion.
Services Offered by RAA
Investment management is the primary service offering at RAA, and the firm provides this management through two key investment strategies:
- Managed account strategy: This is a more conventional investment management strategy in which the firm constructs a tailored portfolio of mutual funds, exchange-traded funds (ETFs) and other products for each client.
- Individual equity strategy: This strategy involves the firm making recommendations for large-cap stocks in conjunction with another firm, Westwood Management Corp. The firm also manages the investments in a client’s 401(k) account at a discounted rate.
In addition to investment management, the firm also offers financial planning and retirement planning services to its clients. The firm encourages all of its clients to be proactive when it comes to retirement planning. Its financial planning services include:
- Estate planning
- Insurance guidance
- Airline, military and government benefit planning
- Tax planning
- Social Security guidance
- Distribution planning
RAA Investment Philosophy
RAA formulates its investment recommendations by using a process known as strategic asset allocation. Advisors will consider each client’s investment goals, risk tolerance, investing timeline and other individual preferences.
Using the information above, the firm will then devise the most appropriate mix of asset classes for your portfolio. Some examples of asset classes include individual equity, fixed-income instruments, alternative investments and cash. Finally, the firm will select the mutual funds and other securities that will ultimately fill out your portfolio.
An important aspect of strategic asset allocation is the periodic review of client portfolios to make sure that each asset class is within the target proportion. For instance, advisors could be targeting 40% equity for a portfolio, but the growth of several securities over time may have resulted in the portfolio being made up of 44% equities. To address this, the firm will rebalance each portfolio to return it to its intended allocation.
Fees Under RAA
RAA charges investment management fees as a percentage of each client’s AUM. The exact rate you receive will depend on your investment strategy and the market value of your assets. Fee schedules for each strategy are listed below:
|Managed Account Fees|
|Account Value||Annual Fee|
|Up to $500,000||1.20%|
|$500,001 - $1,000,000||1.10%|
|$1,000,001 - $1,500,000||1.00%|
|$1,500,001 - $2,000,000||0.90%|
|Individual Equity Strategy Fees|
|Account Value||Annual Fee|
|Up to $500,000||1.40%|
|$500,001 - $1,000,000||1.30%|
|$1,000,001 - $1,500,000||1.20%|
|$1,500,001 - $2,000,000||1.10%|
RAA has no disclosures, meaning it has a clean legal and regulatory record in the eyes of the U.S. Securities and Exchange Commission (SEC).
Opening an Account With RAA
You can get in touch with RAA by filling out the contact form provided on its website. The form requests your name, email address and a brief message or question. If you’d prefer, you can also request via the firm’s website that an advisor call you, or you can call directly at (972) 233-3367.
Where Is RAA Located?
RAA is headquartered in Addison, Texas on Dallas Parkway, which is approximately a 45-minute drive from Dallas. Additionally, the firm has offices in Seattle, Washington and Kennesaw, Georgia, a suburb of Atlanta.
All information was accurate as of the writing of this article.
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