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 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|
|Individual Equity Strategy Fees|
|Account Value||Annual Fee|
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|
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.
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