Tired of High 403(b) Fees? How Massachusetts Educators Are Shifting to Fiduciary Advice
Fiduciary · 1940 Act
Serves only you
Investment adviser, fee-based or fee-only, held to a continuous duty of care.
Broker · 1934 Act
Serves you and their firm
Best Interest standard, commission-based, limited to their firm's product shelf.
Moving your money to a better option is a paperwork hurdle, not a financial one.
403(b) Fiduciary Advice
As your plan fiduciary, I provide fiduciary fee-only advice through Fidelity or Aspire in most school systems' 403(b) plans. If the client prefers an hourly rate instead of an ongoing fee, I can use Fidelity or, if needed, recommend the 457 SmartPlan.
I incorporate your state pension and, if applicable, your newfound Social Security benefit to allocate your voluntary retirement plan savings appropriately. I do the due diligence on which funds to use, and, when appropriate, we reallocate or rebalance the portfolio.
The Old Story: The Gatekeeper and the "TSA"
For decades, the story of the K-12 403(b) was told in school breakrooms. It usually involved a person with a box of donuts and a laptop, offering to help teachers "save on taxes." Because the system was paper-heavy and confusing, that agent served as the gatekeeper.
In the 1960s and 1970s, 403(b) plans were legally known as Tax-Sheltered Annuities (TSAs). You had to buy an insurance product to participate. Enrollment required physical paperwork and a middleman to deliver it to the payroll office. This created a culture in which companies with the largest sales forces—selling products with high fees and "exit penalties"—became the most visible in schools.
The New Story: The Virtual Shift
Today, the "gatekeeper" has been replaced by a digital reality. Most school districts in Massachusetts now hire Third-Party Administrators (TPAs), such as OMNI or TSACG, to serve as plan administrators for their 403(b) plans in compliance with IRS rules. These firms handle administrative tasks—processing contributions, loans, rollovers, and recordkeeping fees—so plan participants and the school system can focus on what matters most.
Because these TPAs operate through online portals, you can find your district's specific rules and approved vendors by searching for your employer's name at OMNI's district lookup tool or TSACG's plan administration site.
This shift changed the game for how you get advice. With administrative work now digital, your advisor can be virtual, too. I no longer need to be in your breakroom to manage your account. We handle strategy through these secure portals, so you can finally hire an advisor based on investment expertise rather than proximity to your school.
I Immediately Felt I Was in Good Hands
"I was fortunate to get a recommendation for Tim Hayes from a colleague many years ago, and I have benefitted greatly from our partnership. At our first meeting, I immediately felt that I was in good hands. Tim is a wonderful listener, and he asked great questions that allowed me to focus my long-term financial goals. He has always been very responsive to any questions I have had and keeps me informed about the impact the vagaries of the investment world have on my portfolio while, at the same time, giving me advice on our next steps. Both his knowledge and his thoroughness are refreshingly impressive."
Phyllis Gleason
Client
Testimonial Disclosure: Testimonials are based on individual client experiences and may not represent the experiences of all clients. They are not a guarantee of future performance. Each client's situation is unique. No compensation has been provided for these testimonials.
Why the Story Changed for Massachusetts Public Employees in 2026
Two major national shifts have made high-cost insurance products even more "out of style":
The Repeal of WEP and GPO
For educators in states such as MA, CA, TX, OH, and IL, the repeal of these rules means you now receive your full Social Security benefits. When you combine a state pension with Social Security, you already have a massive "guaranteed income" floor. Paying for a third layer of "guaranteed income" through a high-cost insurance product is often redundant and expensive.
The Math of the Advisor: What It Costs You
Historically, the cost of acquiring a client was so high (traveling to schools, sitting in break rooms) that independent retirement advisors often ignored this marketplace. The Virtual Shift has changed the math. You can now access independent, fiduciary advice without relying on a "free" agent who is paid via commissions to sell you a specific product.
The Comparison: Then vs. Now
| Feature | "The Breakroom Agent" | Tim Hayes: Fiduciary Advisor |
|---|---|---|
| Model | Must be in the building | In-person or Virtual |
| Product | High-commission Annuity | Managed Investment Portfolio |
| Fees | 2.00% - 2.5% annually | Fee-only, hourly, or commission - your choice |
| Process | Sell you a product and move on | Coordinate your 403(b) with your pension and Social Security |
What High 403(b) Fees Cost You Over 15 Years
Same dollars, no new contributions — just compounding at a lower rate because of higher costs.
| Starting Amount | Value at 7% | Value at 5.5% | What Fees Cost You |
|---|---|---|---|
| $30,000 | $82,771 | $66,974 | $15,797 |
| $100,000 | $275,903 | $223,248 | $52,656 |
| $130,000 combined | $358,674 | $290,222 | $68,452 |
Assumptions: lump sum, annual compounding, no additional contributions or withdrawals, returns constant for illustration. Not a projection of any actual investment. Investing involves risk, including possible loss of principal.
How to Re-Write Your Retirement Plan Story
With a Contract Exchange, we can transfer your funds from one vendor to another within your district's plan, with zero tax consequences. You aren't taking the money out; you're just moving it to a different bucket.
The only real obstacle is the surrender fee—a penalty some insurance companies charge if you leave too early. We check this first. If the fee is low, we move. If it's high, we simply stop new contributions to the old plan and start your new, advisor-friendly account today while we wait for that fee to expire.
1. Check your district's TPA list at omni403b.com or tsacg.com to see your approved vendor list.
2. Look for advisor-friendly options — vendors that allow for managed mutual fund accounts rather than insurance-wrapped annuities.
3. Work with a public employee specialist. You can move your money to a better option and review your investment options at your school, your local café, or from home.
Find Out If Your District Has a Lower-Cost Option
Initial consultations are $200/hr. I am an independent financial advisor with over 35 years of experience helping Massachusetts educators move from high-cost annuities to fee-only or fiduciary options through Fidelity, Aspire, and other approved vendors.
"My goal is to ensure your retirement plan is built on your best interests, not a product sale."
Get started online, or call 508-277-5847 to discuss your district's options.
Financial Advisor for Massachusetts Public School Employees' 403(b) Plans
I work with Massachusetts public school employees — teachers, paraprofessionals, administrators, custodians, and support staff across K–12 districts and public higher education. With offices in Boston and Dartmouth, I serve educators statewide — meeting you in person at your school, library, or local café, or virtually on your schedule.
I specialize in the benefits and retirement plans unique to your role: MTRS (Massachusetts Teachers Retirement System), the 403(b) and 457(b) supplemental plans available through your district, Social Security decisions, and long-term financial planning for educators.
Boston & Metro · North Shore · South Shore · Merrimack Valley · MetroWest · Cape & Islands · South Coast
Wherever you teach or work in Massachusetts, I provide ongoing fiduciary guidance — not just a one-time meeting. If you work in a public school, this service was built for you.
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice. Content provided via links to third-party sites should not be considered an endorsement of content that we cannot verify completeness or accuracy of.