The 403(b) Advisor of the Future Part I

In this series of short posts, I'll describe the future of 403(b) Advisors.

The days of non-fiduciary based, limited skillset, product toting "advisors" are limited. Insurance agents who only sell annuities, have limited training and little in the way of a formal education in financial planning and investments will soon be a thing of the past.

The next generation of advisors to school employees will be varied in terms of how they work with school employees, but they will have several things in common:

  • Core competency in financial planning and investments

  • Act as a Fiduciary and pledge to always place their client's interests first

  • They will not be paid from product sales

  • They will not be induced to sell lousy products with exotic trips and cash bonuses

  • They will support programs that are likely to increase savings for everyone

  • They will realize that getting more school employees to save creates future happy clients

  • They will not sit in school lunch lounges with donuts and pizza

  • They will support vendor consolidation and low-cost investment options

  • They will understand all the different school employee retirement programs in depth

  • Their mortgage will not be dependent on the "next" annuity sale

There are currently many great advisors serving school employees, but there are far more incompetent and conflicted who are not fit to use the moniker "advisor."

The transition to higher competency, greater fiduciary responsibility and participant rights is under way - is your advisor on the bus?

Scott Dauenhauer CFP, MSFP, AIF


Meridian Wealth Management