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RAA

RAA is a financial advisor firm that's based in Addison, Texas. The firm's services are uniquely focused on the financial planning and investing needs of members of the airline community. In fact, the firm has clients who work for many large airlines, including American Airlines, Delta, Southwest, United and more.

Although RAA used to be an independent operation, it is now a division of Allworth Financial. Of Allworth's over $8 billion in client assets under management (AUM), RAA lays claim to just under $3 billion. The firm typically works with non-high-net-worth and high-net-worth individuals. As a fee-only firm, all of RAA’s earnings come from advisory services provided to clients.

RAA Background

RAA opened for business more than 30 years ago. In January 2020, though, RAA, which is legally known as PHH Investments, Ltd., was purchased by Allworth Financial, L.P. Allworth is a large financial advisor firm that's based in Sacramento, California.

RAA’s team of 21 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), chartered retirement planning counselors (CRPCs) and more among the firm's advisory staff.

RAA Client Types and Minimum Account Sizes

Morst of RAA’s client base consists of individuals with and without a high net worth. The firm works with a personal trusts and foundations as well.

RAA generally imposes a minimum account size of $250,000 for new clients. However, the firm may decide to waive this requirement at its discretion.

Services Offered by RAA

Investment management is the primary offering at RAA, and the firm provides this management through two key investment strategies:

  • Managed Accounts: 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. Investment choices are based on the client's risk tolerance, time horizon and goals.
  • Individual Equity Strategy: This strategy involves the firm making recommendations for large-cap stocks in conjunction with another firm, Westwood Management Corp.

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 other financial planning services include:

  • 401(k) account management
  • 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 within this strategy.

Using the information above, the firm will then devise an appropriate mix of asset classes for your portfolio. Some examples of asset classes include individual equity, fixed-income, alternative investments and cash. Finally, the firm will select the mutual funds, ETFs and other securities that will ultimately fill 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
First $500K 1.20%
Next $500K 1.10%
Next $500K 1.00%
Next $500K 0.90%
Above $2MM 0.70%

 

Individual Equity Strategy Fees
Account Value Annual Fee
First $500K 1.40%
Next $500K 1.30%
Next $500K 1.20%
Next $500K 1.10%
Above $2MM 0.90%

For reference, a 2018 study completed by RIA in a Box shows that the average annual advisory fee is approximately 0.95% of a client's AUM. Here's a breakdown of what you could pay in advisory fees if you subscribe to RAA's Managed Accounts program:

*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.
Estimated Investment Management Fees at RAA*
Your Assets Managed Accounts Fee Amount
$500K $6,000
$1MM $11,500
$5MM $42,000
$10MM $77,000

What to Watch Out For

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 (800) 321-9123.

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.

Retirement Planning Tips

  • Finding the right financial advisor doesn’t have to be hard. In fact, SmartAsset’s free tool can match you with financial advisors in your area in just five minutes. If you’re ready to be matched with local advisors, get started now.
  • It can be tough to know how much to save for retirement without knowing what your future expenses might be. Our retirement calculator can help you determine how much you’ll need to save depending on where you want to retire, when you want to retire and other important factors.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research