Mike Jones, CRPC • Virginia Beach, VA
Patriot Strategic Investments • ProEquities, Inc.
A big part of my practice is helping to bring third-party active investment management to 401(k) plans. My professional network includes people associated with the airline industry and the military, and I have found a very receptive audience there.
Pilots are intelligent people who have mastered a challenging and highly technical skill, and they naturally think they can bring the same talents to investing. Many are knowledgeable, but frankly, their investment success rate is usually not any better than average.
Like many others, they generally took a big hit to their portfolios during the crash of 2008-2009. They know they could benefit from some professional assistance and a new way of looking at investments. They know they would only want someone who is “instrument-rated” to fly their planes, and the same thing applies to investments.
I spread the word among the pilot community about how they can employ actively managed strategies in their 401(k) plans. When I talk with them, they see that there’s a process through active money management that can provide them with a more disciplined approach—which is especially important as they plan for a secure retirement.
Active money managers will effectively watch over their portfolios every day and take up defensive positions if the market turns. For a pilot who might be away from home base for many days, or on a series of long flights, that is a pretty attractive proposition.
I stress that this can be an easy process, as they can use the brokerage option available in many 401(k)s that allows professionals to manage their money. And for the die-hard investors and traders, I also always point out there is no reason they cannot also fund a small account to run their own trading programs—one concession goes a long way.
Disclosure: Mike Jones is an investment advisory representative with Patriot Strategic Investments in Virginia Beach, Virginia. Advisory services offered through Investment Advisors, a division of ProEquities, Inc., a registered investment advisor. Securities offered through ProEquities, Inc., a registered broker-dealer, Member, FINRA & SIPC. Patriot Strategic Investments is independent of ProEquities, Inc.
Photography by Chris Winton-Stahle
