More than a Money Manager.

How to grow your practice and help investors in need?

Posted by Manish Khatta on October 11, 2017

The 403(b) market historically has been a very unfriendly place for financial advisors because of the inherent restrictions placed on the plans, such as:

  • Restricted access for financial advisors
  • Limited or non-existent ability to deduct management fees
  • Inadequate systems for handling trades and reconciliations
  • Poor selection of mutual funds

The 403(b) market has come a long way since we started, and today the future is brighter for financial advisors who want to serve clients with these plans. By partnering with Potomac Fund Management, in the 403(b) market, financial advisors can add substantial assets to their practice and help investors in need.

The guide to 403(b) success is presented in this infographic. Print it, pin it, share it, but whatever you do... use it and get started today.

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Topics: Product

The 4 steps to adding AUM in the 403(b) space

Posted by Manish Khatta on September 20, 2017

Back in 2003, one of our independent financial advisors approached us to discuss our willingness to start managing money in the workplace retirement market, specifically 403(b) accounts at a large university. Our initial reaction was “Absolutely not!” The 403(b) market historically has been a very unfriendly place for financial advisors because of the inherent restrictions placed on the plans, such as:

  • Restricted access for financial advisors
  • Limited or non-existent ability to deduct management fees
  • Inadequate systems for handling trades and reconciliations
  • Poor selection of mutual funds

Despite these reservations, we reluctantly agreed to wade into the 403(b) waters until we became well-accustomed to the nuances of the market. At the time, each institution would have multiple plans with multiple providers and zero consistency. The 403(b) market has come a long way since we started, and today the future is brighter for financial advisors who want to serve clients with these plans.

With the experience of time and persistence, we have been able to successfully navigate the 403(b) world, but not without our fair share of trials and tribulations. By working with Potomac as your partner in the 403(b) market, financial advisors can gain access to this untapped potential and our years of real-life operational experience.

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Topics: Product

A trillion dollar opportunity for financial advisors

Posted by Manish Khatta on September 7, 2017

It’s not very often an opportunity comes around where a financial advisor can make a tremendous difference in the lives of clients in need and add significant AUM to their book of business.

The projected explosive growth of jobs in the healthcare and education sectors presents such a large and potentially lucrative opportunity, especially for advisors who are positioned to help these workers plan for retirement and manage their portfolios through their workplace 403(b) plans.

Employment growth for both sectors between now and 2024 is projected to run well above the national average, according to recent estimates from the U.S. Bureau of Labor Statistics (BLS). Healthcare jobs are expected to skyrocket in the coming decade—the BLS notes that 1 in 4 new jobs created between now and 2024 will be healthcare-related, and 7 out of the top 10 fastest growing occupations are in the healthcare sector.

For this very reason, the growth of the retirement advice business for workers in education, healthcare and non-profit institutions has attracted the interest of asset managers, plan providers and investment advisors. Opportunities in the 403(b) market may be different now than they were more than 20 years ago, but there remains great potential for advisors who are willing to focus on this market and offer a solution that participants find valuable--such as portfolio and risk management.

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Topics: Product

Bond investors: Address the risk of rising rates now or suffer the consequences later.

Posted by Manish Khatta on August 17, 2017

The bull market for bonds has lasted for over 30 years—that’s an entire generation that has only known falling interest rates and favorable bond market returns.

Fixed income pundits have called for an end to this bull market run for several years now, but it hasn’t happened yet (at least not as of this writing). Interest rates today may be higher than they were at their lowest point of last year, but they really haven’t broken out to the upside as of yet. Certainly not enough to say the decades-long bond bull market is over.

But at some point, this run is going to stop and there will be a trend shift toward sustained rising interest rates. That’s why we believe the risks for bond investors are as high as ever in the current market environment. Many people see their bond holdings as conservative investments, but this mindset needs to change with bond market risks at their highest levels.

How did we get to this point? Let’s explore this question by looking at the role the Federal Reserve has played in lowering interest rates and raising risks for bond investors.

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Topics: Risk Management

Ultimately we like to say that we are "More than a Money Manager. This is a small business run by people not robots. We talk, we plan, we execute together, as partners working to achieve the same goal."

Here are some topics you'll read about in our blog:

  • Our risk management techniques that make investing a smoother ride.
  • An inside view of our industry including the ugly nobody wants to talk about.
  • Our trials and tribulations growing and implementing technology.
  • Our company culture and the people behind the process.
  • Our great advisor partnerships, small business success stories and much more…

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