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.

Jason Depew

Thursday, January 20, 2022 at 10:30 AM ET

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

Key Takeaways:

Aircraft ownership requires setting aside substantial reserve funds for maintenance and engine overhauls, which are difficult to reduce directly.
A better approach involves consistently contributing to dedicated bank accounts for these reserves, especially beneficial for co-ownership arrangements.
The most advantageous strategy is to invest these reserve funds (e.g., in index funds) to leverage compounding interest, combat inflation, accelerate financial growth, and provide flexibility for future expenses, upgrades, or even reduced flying costs.

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.