Financial Advisor Tim Hayes

403 b Plan Financial Advisor Massachusetts Public Schools

Since 1990, I’ve been a financial advisor specializing in helping educators set up, invest, and service their 403b plans.
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Sign Up for a 403b today and start paying fewer taxes tomorrow

A 403b is a retirement plan for public school employees that helps you accumulate money to supplement your state pension. You can start with as little as $50 to $100 per paycheck, and just like your contribution to the state pension plan, the amount you save is pretax.

Since 1990, I’ve been a 403 b Plan financial advisor helping educators set up, invest, and service their 403b plans.

I can work with many of the 403b vendors in your vendor list so that you can invest your 403b in the vendor suitable for you.

Read More: Retirement Financial Advisor

403b Vendors, Public School Employees, and Financial Advisors

Written Plan – In 2009, the IRS began requiring a written plan for all employers offering a 403b plan. The plan lays out the “rules of the road,” including the plan’s loan policy, vendor’s exchange options, and withdrawal rules.

Vendor List – The plan lists what vendors the staff can use for their 403b. Each vendor in your program will have its fee structure, fund choices, and product features.

I Emphasize Education – Financial advisors working with public school employees need to be familiar with the 403b regulations, the plan, and the vendor list.

TPA – Many school systems now use a TPA or third-party administrator to help run their plan. In Massachusetts, the most common TPAs are TSA Consulting and the OMNI Group. In addition, financial advisors process client paperwork such as salary reduction forms, loan forms, and withdrawals through the TPA.

My Professional Designations

Financial advisors who hold the AIF® designation have:

  • Completed the AIF® Designation Training;
  • Passed the AIF® designation exam;
  • Met the designation’s prerequisites and qualification and conduct standards;
  • Accrued a minimum of six hours of continuing professional education, with at least four hours coming from fi360-produced sources;
  • Attested to a code of ethics.

Financial professionals who hold the CRPS® designation have:

  • Completed a course of study encompassing design, installation, maintenance and administration of retirement plans;
  • Passed an end-of-course examination that tests their ability to synthesize complex concepts and to apply theoretical principles to life situations;
  • Pledged adherence to the CRPS® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.

CRPS® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.

Financial Advisor who hold the AWMA® designation have:

  • Completed a course of study encompassing wealth strategies, equity-based compensation plans, tax-reduction alternatives, and asset-protection alternatives;
  • Passed an end-of-course examination that tests their ability to synthesize complex concepts and apply theoretical concepts to real-life situations;
  • Agreed to adhere to the AWMA® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.

AWMA® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.

CFS designation is awarded upon passing an examination on mutual funds, ETFs, REIT's, closed-end funds, and similar investments.

Advanced studies on topics include:

  • Fund analysis and selection;
  • Asset Allocation;
  • Portfolio Construction
  • Sophisticated investment strategies for risk management, taxes, and estate planning.

 

 

San Diego, CA, November 13, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the only nationally recognized tax designation, CTS (Certified Tax Specialist). This graduate-level designation is conferred upon candidates who complete an 135+ hour educational program focusing on personal income taxes and methods to reduce tax liability. The combined top state and federal bracket can easily exceed 40%.

San Diego, CA, September 1, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the estate planning designation, CES™ (Certified Estate and Trust Specialist™).

This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on trusts, wills, probate, retirement benefits, caring for children, and what should be done after the death of a loved one. Over $50 trillion is expected to pass from one generation to another during the next half-century.

The Accredited Portfolio Management AdvisorSM, or APMA® program, is a designation program for financial professionals. The program educates advisors on the finer points of portfolio creation, augmentation, and maintenance. Students will gain hands-on practice in analyzing investment policy statements, building portfolios, and making asset allocation decisions.

San Diego, CA, May 12, 2020 – The Institute of Business & Finance (IBF) recently awarded Timothy Hayes with the only nationally recognized annuity designation, CAS® (Certified Annuity Specialist®).

This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on fixed-rate and variable annuities. Several trillion dollars are invested in annuities; it is estimated that at least one-third of all annuity contracts are not titled correctly.

403 b Maximum Contribution and Catch-Up

Public school educators, including university professors and administrators, can save more pretax than any other public or private-sector employee.

That’s because educators are eligible for two retirement plans, both with unique catch-up options.

In 2022, educators can save $20,500 into a 403(b) and a 457 plan. Those 50 years of age or older can also contribute an additional $6,500 to one of the two programs.

The 403(b) catch-up allows educators with low 403(b) savings who have worked 15 years with the same employer to save an additional $3,000 per year for five years.

One problem with this catch-up is that any contributions over $20,500 are credited first against the 15-year rule. A teacher aged 50 or older could use up their 15-year catch-up without knowing it.

Read More: 403b Rollover

457 Maximum Contribution and Catch-Up

The 457 plan has a more considerable catch-up. It allows eligible employees to contribute $37,000 per year for three years before their “regular retirement date.”

The 403(b) catch-up can be used in conjunction with the age of 50 catch-up and a 457 plan. However, the 457 plan catch-up cannot be used with the age of 50 catch-up, although the employee could still contribute to a 403(b).

Not everyone can afford to save the maximum; however, it is good to know that educators have a well-deserved potential benefit.

Your school system provides you with a list of 403(b) companies. The 457 plan is different. The city/town usually provides one company. However, both typically give you a broad range of investment options.

403 b Plan Financial Advisor for Massachusetts Public Schools
403 b Plan Financial Advisor for Massachusetts Public Schools

403b Financial Advisor

I have accumulated a reservoir of knowledge on the retirement system, the social security offset/windfall elimination, 403(b) plans, and other financial issues specific to public employees.

Because I am an independent financial advisor who provides flexible payment options (fee-only, hourly rate, or commission), I can work with most companies in your school system’s 403(b) plan. A partial list of companies I work with includes Fidelity, American Funds, Putnam, MFS, Aspire, Security Benefit, Axa, and Oppenheimer.

Social Security and Massachusetts Public School Employees

Public employees in Massachusetts do not contribute to the Social Security system, but many of them contribute through other jobs. Some also have spouses who take part in the Social Security system. Both scenarios are affected by two federal laws.

The Windfall Elimination provision can reduce any Social Security benefits that a public employee earns by as much as 55%. For example, a retired teacher who receives a pension from MTRS and also qualifies for a monthly Social Security benefit of $1,000 might only receive $450 a month.

The Government Pension Offset provision affects the Social Security benefits of a spouse, widow, or widower. For example, if a married teacher receives a monthly pension from MTRS of $6,000, two-thirds of that amount ($4,000) will be credited against any benefit from their spouse’s Social Security.

Thus, if the spouse dies and the retired teacher is eligible for a $2,000 survivor benefit from Social Security, that teacher would receive none of it because the $4,000 would eat into all of it.

Very few married people who retire with a pension from MTRS will receive anything from their spouse’s Social Security.

Read More: Financial Planning for Retirees

Are There Any Workarounds?

There is a workaround for the Windfall Elimination Provision. Any public employee in Massachusetts with 30 or more years of ‘substantial earnings’ in a job where they paid into Social Security will receive their full benefits. In fact, after 25 years of such substantial earnings, any reduction in Social Security benefits begins to shrink.

Read More: Retirement Income • Strategies for Income In Massachusetts

403b Financial Advisor Near Me

From my Boston or Dartmouth office, I will provide expert, highly personalized financial planning, retirement planning, and investment solutions when you need an independent financial advisor in Massachusetts, Boston or Greater Boston, Salem or the North Shore, Hingham, or any other town on the South Shore, Andover, the Merrimack Valley, and the MetroWest, including Framingham, or the Southcoast, Martha’s Vineyard, Nantucket, and Newport, RI.

Securities Licenses

Passing the exam qualifies candidates as both securities agent and investment advisor representative.

Individuals who pass the Series 7 examination are eligible to trade all securities products: corporate securities, municipal fund securities, options, direct participation programs, investment company products, variable annuities contracts, etc.

The exam measures the degree to which each candidate possesses the knowledge needed to offer the products of investment and insurance companies, including the sales of mutual funds and variable annuities.

The exam qualifies candidates as securities agent within a state. Nearly all states require people to pass the Series 63 for state registration.

I am also licensed to offer life, health, accident, disability and long-term care insurance products, as well as fixed annuities.

403 b Plan Financial Advisor for Massachusetts Public Schools Tim Hayes

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