Top 5 Mistakes Pilots Make with Their Money and How to Avoid Them
1. Measuring Your Financial Success on Cockpit Talk
It’s inevitable that while on a trip, you’ll end up discussing stocks, investments, or retirement plans with your co-pilot. Topics often include mega-backdoor Roth strategies, how much is “enough” to retire, or multiple vacation homes. But using your co-pilot’s finances as a benchmark for your own is a mistake. What works for them may not align with your goals, risk tolerance, or family situation. Blindly following others can cause more harm than good.
2. Ignoring Disability and Life Insurance Needs
Many pilots overlook the importance of proper disability and life insurance. With major airline pilots earning around $200,000 annually and often being the primary provider, a sudden loss of income can be devastating. While employer-provided coverage has improved, it’s often not sufficient. It’s essential to assess your needs independently and review term life insurance options to ensure your family’s future is protected.
3. Focusing on Stuff Instead of Building Wealth
Flashy material possessions, such as cars, boats, or vacation homes, can distort what financial success really looks like. When your co-pilot talks about their new luxury car or weekend lakehouse, remember they might also be managing significant debt to fund that lifestyle. True wealth comes from building assets, not collecting liabilities. Growing your 401(k) may not seem glamorous, but it’s a far better long-term investment.
4. Thinking You Can Outsmart the Market
Despite overwhelming evidence to the contrary, many investors still believe they can beat the market. In fact, 94% of the time, the S&P 500 outperforms active asset managers. Rather than picking individual stocks or timing the market, focus on a diversified portfolio with long-term strategies. Let the numbers speak for themselves and don’t let cockpit chatter derail your investment plan.
5. Forgetting Your Individuality
It’s tempting to compare your financial progress to others, but your plan should reflect your unique goals, values, and circumstances. Financial planning is like medical treatment: what works for one person could be harmful to another. A personalized plan tailored to your needs will always be more effective than following a one-size-fits-all strategy based on someone else’s situation. If you’re ready to build a personalized, comprehensive financial plan, schedule a consultation with one of our fiduciary financial advisors.
Michaela Dowdy
Financial Advisor, Wiser Wealth Management
Share This Story, Choose Your Platform!
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.
