By Mike Cordak, RICP®
As a current pilot for Delta Air Lines with over 20 years of experience at the same airline, I have a unique understanding of our retirement and investment benefits.
In addition to being a Delta pilot, I’m also an RIA (Registered Investment Advisor). In 2007, I started my own wealth management firm called Optimum Wealth Management, LLC. I designed my firm’s financial planning services with Delta pilots in mind.
Because I frequently communicate with other Delta pilots, I often hear about the same financial mistakes being made. I was inspired to summarize those mistakes to help you avoid making the same errors—and instead build a healthy financial future.
Delta Air Lines Pilot Financial Mistakes
- Not utilizing the brokerage link 401(k) account option: Any pilot can take up to 98% of their 401(k) and put it in the BrokerageLink option. Doing this allows Delta pilots to invest in literally thousands of different investment products. For comparison, in a traditional 401(k) plan, there are only 23 investment fund choices.
- Not making contributions to their Roth 401k account: I hear about this mistake most often from new pilots and/or young pilots. For pilots who are just starting out and have a relatively low salary, contributing to a 401(k) isn’t always feasible or practical. However, for established pilots with a higher salary, contributing to a Roth 401(k) account can be a very powerful tool. The money you contribute to a Roth 401(k) grows tax-free while it’s inside the account. And even when you take the money out during retirement, it’s not taxable.
- Not having a well-designed, monitored, and well-researched investment plan: The biggest drawback, in my opinion, of not having a well-designed investment plan is missing investment opportunities. Without a plan, you can potentially miss prime opportunities for building your wealth. Instead of consistently investing in solid opportunities, you run the risk of investing in unsuitable assets.
- Buying or selling investments based on emotion: Just because a stock or index is having a fantastic or terrible week doesn’t necessarily demand action from you. I see this mistake all the time, and it can be incredibly costly.
- Chasing the latest investment craze: What was great last year probably isn’t so great this year. These fads typically lack a solid foundation and promise large profits with minimal risk. This is a major red flag.
- FOMO (Fear of Missing Out): The most common result of making FOMO investments is missing out on great gains in other areas in the market and ending up with substantial loss instead.
- Choosing way too conservative or way too aggressive investments: Both types of investments can result in not having enough of a nest egg to retire comfortably. Instead of making this mistake, follow a well-researched plan that’s been customized for your individual risk tolerance and long-term goals.
- Not hiring a professional Registered Investment Advisor: A lot of people think they can navigate wealth planning on their own. This is another costly mistake I see all the time. The smarter move is to partner with a professional.
Avoid Financial Mistakes With Help From a Professional
Optimum Wealth Management serves the financial, retirement, and wealth planning needs of Delta pilots and their families. We do this starting from when a pilot is first hired all the way through the transition to retirement and beyond.
As an RIA, I have a fiduciary responsibility to you, meaning I’m held to a higher standard of fairness than other advisors, and am required by law to make decisions based on my clients’ best interest, not my own.
To schedule a complimentary meeting, get in touch online, call (678) 778-2694, or email mcordak@optimumwlth.com.
About Mike
Mike Cordak is founder and owner of Optimum Wealth Management, a Registered Investment Advisor serving the financial, retirement, and wealth planning & management needs of airline pilots—from hiring all the way through the transition to retirement and beyond. As a Delta pilot himself for more than two decades, Mike’s goal is to cultivate authentic life-long relationships with pilots to help them and their families create, grow, and preserve their wealth. As someone familiar with the pilot lifestyle and their unique goals and concerns, he offers a different investment strategy than the average advisor. Combining a fee-only business model with a fact-based tactical investment management style, he creates an environment that allows him to fulfill his mission of bringing clients financial peace.
Mike received his finance degree from Gies College of Business – University of Illinois Urbana-Champaign before pursuing a career as a pilot. After losing the defined-benefit plan at his airline in 2006, he entered the financial industry, inspired to create his own firm and take control of his finances to pursue financial stability after retiring as a pilot. He obtained the Retirement Income Certified Professional® designation, which means he has a legal and ethical duty to put clients’ interests first.
Mike and his wife, now empty nesters, love getting together with their kids as often as their schedules allow. Outside of reading financial news, he enjoys flying his own plane, golfing, hiking, skiing, and playing tennis and pickleball. He also can be found enjoying good wine and food, spending time at the beach, or traveling to foreign countries. He also has an interest in the Atlanta Mission, which helps out homeless people, the Woodstock City church, and contributes to various young people going out on mission trips and working on college campuses. To learn more about Mike, connect with him on LinkedIn.
