The Journey to "Better"
I was twelve years old whenmy father asked, “Katie – are you ready to take some of your babysitting moneyand invest it in the stockmarket?” For a fleeting moment, I had visionsof spending my hard earned cash on something exciting to my seventh grade self- like a new discman or an outfitfor the upcoming dance. But, deep down,I knew this question was coming and had already braced myself to part ways withmy first big windfall of cash.
My Dad had been training me for this day for my whole life – he started a financial services firm when I was in elementary school and made sure he imparted his wisdom to the next generation. In 4th grade, he had coached my friends and me on the High Point Hounddogs Math Team to the county championships. In sixth grade – the year before he asked me the fateful question above - he had shown up in my math class to teach a lesson on the stock market. Dinnertime conversations often focused on the interest rates on bonds, the role of the Federal Reserve in our economy, and a certain stock’s performance. Now, it was time to put my money where my mouth was and start my investment portfolio. So much for the discman.
Fast forward to college –after growing up surrounded by the world of finance, I wanted to take adifferent path. I had severalexperiences highlightingthe systemicinequalities in our society in college and wanted my career to focus onaddressing those inequalities. A careerin finance, I thought, would only perpetuate the current systems in place. In2004, I joined the charter corps of Teach For America in Charlotte, NorthCarolina, where I spent two years teaching eighth grade science. Falling in love with teaching, I moved backto Atlanta in 2006 to teach at a charter school known as KIPP WAYS Academy inthe Vine City neighborhood.
My dinnertime conversations had a funny way of weaving themselves back into my life, even though I was in a very different industry. More than once, I sat in a staff meeting as a broker pitched a retirement plan product to us. Everyone would look down the row at me and mouth, “Hey - Is this a good one? Should I give them my money?”. Don’t get me wrong – these brokers were very nice people….but, when I evaluated their products, I found they were often complex products - filled with jargon and more often than not carrying a heavy commission for the broker. And, I knew that once people discovered this and tried to move their money to lower cost investments - there could be hefty surrender fees. Each time, I would write a note with my trusty Vis-à-vis marker stating “Nope. Not worth it - just open and fund a IRA with low cost funds and keep it moving!” and pass it down the aisle.
This scenario repeated itself countless times over my fourteen year career in education - and I know it wasn't my school alone subject to these types of plans as I heard similar stories from my friends and colleagues across the country. The New York Times even caught onto this in 2016 when they published a series of articles – the first one titled, “Think Your Retirement Plan is Bad? Talk to a Teacher."
Each time I found myself with less and less patience as I saw the system was broken. I know what it was like to work for a non-profit and in the education sector – I was surrounded by some of the most talented people I have ever met. We woke up every single day focused on advancing the mission of our respective organizations - often working long hours with limited resources and making personal sacrifices in order to better the world. Why should we be left either without a retirement option or with one charging hidden fees that ate away at our hard-earned money?
Fast-forward to 2009 – That year, my dad and his firm created a 401(k) product called Investor’s Choice. Much like his wealth management practice, it was simple to understand, low-fee, and put people at the center. I followed this journey from the sidelines as I continued my career in education, cheering on the program as it grew to serve over 3,400 participants across the country.
“I’m for better.”
- Professor Jal Mehta
My advisor from graduate school– Jal Mehta - coined a phrase in our Education Policy 101 class, “I’m for better.” After learning about the Investor’s Choice program my dad and his firm created, I saw an opportunity to create something better for all of our educators and employees of non-profits. In the summer of 2018, I joined my father (and mother) at Investors Asset Management of Georgia, with the intention of creating a revolutionary retirement plan for non-profits and charter schools.
Today – almost a year later - we are excited to announce the launch of two programs to complement the original Investor’s Choice 401(k) program: the Investor’s Choice 403(b) for Non-Profits and the Teacher’s Choice 403(b) for Charter Schools. We designed them specifically to give people in these sectors options to "better": the plans are low-cost, have a transparent fee structure, and contain a variety of investment options for people. And, for the person administrating the plan - we made it as simple as possible (because we know you have approximately one hundred other things on your plate).
It has taken a village to get here – there is much gratitude to my friends and former colleagues for attending focus groups, coffee meetings, or taking phone calls to help build and shape this product into what it is today. Also, the group at Investors Asset Management came together to build something new, leveraging their 200 years of collective wisdom in the investment industry to build these programs. Additionally, we have some national partners who have been nothing but amazing – they have torn down walls that existed for decades in the financial services world to make these programs happen.
Our mission is to provide the opportunity of a secure financial future to all educators and employees of non-profits…so they can focus on advancing the mission of their organizations today.
We're excited to bring this program to market and serve those who work each day to make our world a better place. We are all...for better.
Want to know more about how our plan puts the teachers and employees of non-profits at the center? Check out our free Ebook - The Comprehensive Guide to Choosing a 403(b) .