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Less Aircraft Owner Stress? Set Up Your Reserve Funds This Way

Learn how to let your maintenance, overhaul, and other reserve funds grow themselves for you.

Needing money for repairs is a necessary evil of aircraft ownership. [File Photo: Adobe Stock]
Gemini Sparkle

Key Takeaways:

  • Aircraft ownership requires dedicated reserve funds for maintenance and engine overhauls, which are essential but offer little upfront savings.
  • Instead of leaving these funds in low-yield accounts, owners should invest them in brokerage accounts (e.g., stocks, mutual funds) to leverage compounding interest.
  • This investment strategy allows the reserve funds to grow faster, potentially reaching financial goals sooner and providing flexibility for aircraft upgrades, reduced future contributions, or other benefits.
See a mistake? Contact us.

In case you missed the last couple weeks, we’ve been using an aircraft costs calculator to optimize and reduce the expenses of owning an airplane. Our analysis thus far has shown our reserve funds for general maintenance and engine overhaul to have little room for savings. While this is an unfortunate truth of aircraft ownership, we can at least put these funds to work for us.

Treat Your Cessna Like a B-1

Remember our recent discussion where we noted that, with both jets and investments, the faster you go, the faster you go? I want you to treat your aircraft like the Bone.

Jason Depew

Jason Depew flies as a captain for a major U.S. airline. He is also an Air Force reservist and has flown more than 300 combat missions over Afghanistan and other garden spots. Based in Tampa, Florida, he instructs in the Icon A5 and anything else he can get his hands on. His writing is focused on personal finance for pilots with the goal to help all types of aviators enjoy great careers, sometimes in spite of themselves. You can send Jason questions at editorial@flying.media.

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