Redhawk says the solution enables teachers to invest their 403(b)(7) retirement accounts with professional money managers, who typically work with high-net-worth individuals. The managed account platform can be used by any fee-based financial adviser.
A registered investment adviser, Redhawk partnered with retirement solutions service provider Aspire Financial Services in order to launch the platform and related custodial services. Investment providers included on the platform are 3D Asset Management, F-Squared Investments, Sage Advisory Services, and Victoria Capital Management. Over 4,200 U.S. school districts have approved the platform, and it is linked to over 30 common remitters, according to the firms.
Financial advisers are able to search to see if a school district is already an Aspire-eligible customer. The adviser can set up the retirement account through a simple process, and then assets electronically move from the current provider to Aspire’s platform. Further, advisers are enabled to contend with annuity providers for these types of retirement accounts, Redhawk says.
“The platform helps advisers capitalize on 403(b)(7) retirement accounts that they have normally avoided. Now they can utilize the same portfolio managers that are used for their best wealth management clients,” says Rick Keast, senior vice president, Redhawk. “If the school district is already approved, the adviser can start contacting teachers right away. We’ll even show the adviser how to gain access to the superintendent of the school district and all of the teachers.”