The Free Fallacy - Why Free 403(b) TPA's Are A Bad Idea

This is a piece I wrote that I believe is one of the most important papers I've written since "Does The NEA Practice What It Preaches" back in 2001. This paper, like the last is an expose on the industry that is attempting to serve school districts across the United States in relation to their compliance for 403(b) retirement plans. A bevy of Third Party Administrators of 403(b) Compliance have popped up to offer "Free" compliance services, or low-priced compliance service - but they are all driven by product sales.

The compliance piece is simply a way to get to school employees to sell them product, not a comprehensive plan to keep them in compliance.

My paper examines the true costs of these "Free" TPA's and concludes that they are a bad idea and probably a lawsuit waiting to happen.

Scott Dauenhauer, CFP, MSFP, AIF