United Airlines PRAP vs PCRA: Understanding the Differences

When it comes to managing your retirement savings as a United pilot, you have two main options available: investing in the Core Funds within the United Airlines Pilot PRAP (Pilot Retirement Account Plan) or using a Personal Choice Retirement Account (PCRA) to implement your investments. While both options have their benefits, investments in a PCRA can provide you with more control and flexibility over your retirement portfolio, and it can also be a great way to work within your existing financial plan. In this blog post, we will discuss the advantages of using a PCRA to implement your investments compared to investing in the Core Funds within the United Pilot PRAP, and how it can fit into your overall financial plan.

  1. More Control over Investment Decisions:

    One of the primary advantages of investments in a PCRA is that you have more control over your investment decisions. You can choose which assets to invest in, how much to invest, and when to make changes to your portfolio. With the Core Funds, on the other hand, you are limited to the investment options provided by the plan. While these options are often diverse, they may not align with your investment goals or risk tolerance.

  2. Diversification Opportunities:

    Using a PCRA also provides you with greater diversification opportunities. With the Core Funds, you are limited to a preselected list of mutual funds. With investments in a PCRA, you can diversify your portfolio across a range of asset classes, including stocks, bonds, and alternative investments. This can help reduce your portfolio’s overall risk and potentially improve your returns over time.

  3. Flexibility:

    Investments in a PCRA also provide greater flexibility in managing your retirement savings. You can make changes to your portfolio as needed to adjust to changes in the market or your investment goals. With the Core Funds, you may have limited options for making changes to your portfolio, depending on the rules of the plan.

  4. Integrating with Your Financial Plan:

    Investments in a PCRA can also be a great way to work within your existing financial plan. By using a PCRA, you can invest in assets that align with your overall financial goals and strategy. This can help you achieve your financial goals and build wealth over time.

  5. Professional Management:

    The PCRA option gives pilots the ability to work with a financial advisor who can help choose and manage investments within the plan. This can be particularly useful if you are not confident in your ability to choose and manage investments on your own, or if you prefer to have professional guidance. ACT Wealth Management has used Charles Schwab & Co., Inc, as their primary Custodian for more than a decade, and has many years of experience utilizing the PCRA for United Pilots.

Overall, investments in a PCRA can provide you with more control, flexibility, and potential diversification opportunities over investing in the Core Funds within the United Pilot PRAP. By integrating a PCRA into your overall financial plan, you can invest in assets that align with your financial goals and strategy. As always, it’s important to carefully consider your investment goals and risk tolerance before making any investment decisions.

These materials have been independently produced by ACT Wealth Management, LLC. ACT Wealth Management, LLC is independent of, and has no affiliation with, Charles Schwab & Co. Inc. or any of its affiliates (“Schwab”). Schwab is a registered broker-dealer and member SIPC. Schwab has not created, supplied, licensed, endorsed, or otherwise sanctioned these materials nor has Schwab independently verified and of the information in them.

ACT Wealth Management, LLC provides you with investment advice, while Schwab maintains custody of your assets in a brokerage account and will effect transactions for your account on our instruction.

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