Katie Williams, AIF, CRPC, CRPS, CFP • Minneapolis, MN
Classic Financial Services • LPL Financial
For more than 15 years, I have been serving the needs of 403(b) plan sponsors and their participants across Minnesota. Within this context, I have worked with over 100 plans and school districts and have had contact with thousands of plan participants.
It is a complicated sales process with multiple constituencies: the providers or vendors of 403(b) plans, consultants (when they are part of the picture), school system administrators, and the plan participants themselves. Within the school system alone, it can be an interesting challenge identifying the right decision-makers, as it can vary from a school board, a superintendent, an administrator, a business manager, or a committee including all of the above with teacher representatives.
Ultimately, each district has its own personality and preference for how they do business. It is important to create the relationships and build trust so you can operate effectively within the specific environment of each district. I do a lot of homework to understand the nature of each district’s current program, regardless of whether it is multi-vendor or not, and then I do the prep work with the vendors to formulate proposals that offer the best value for the cost, the appropriate investment options, and plan design.
One thing that I think is unique with how we run our practice—and I still do this personally—is that we go back to each school district every year for a personal visit. We keep the same schedule annually, going back to specific school locations to review the plans with administrators, participate in benefits fairs, and have group and one-on-one sessions with participants.
This is a very labor-intensive process, but we’ve always approached this more as an education process, almost a financial wellness program. By providing the resources to help people become more knowledgeable about their 403(b) plan, they will, hopefully, become more disciplined investors. These annual reviews pay dividends to my practice in two ways: (1) referrals down the road to other school districts from decision-makers, and (2) the potential for a plan participant to become interested in engaging our firm for their future financial-planning needs.
Disclosure: Katie Williams offers securities and advisory services through LPL Financial, a registered investment advisor. Member FINRA/SIPC. No strategy assures success or guarantees against loss. Investing in securities is subject to risk and may involve loss of principal. Active money management may involve more frequent buying and selling of assets and will tend to general higher transaction costs. Investors should consider the tax consequences of moving positions more frequently. Asset allocation does not ensure a profit or protect against a loss. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Alternative investments and leveraged strategies may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments and leveraged investments may accelerate the velocity of potential losses.
Photography by Ackerman & Gruber
