Maryland-based Potomac Fund Management has unveiled an enhanced self-directed brokerage account program designed to give financial advisors a direct path into their clients' workplace retirement plans.
The announcement of the new offering on Monday came as the Bethesda-headquartered asset manager reached $4.4 billion in AUM, a figure the firm says represents more than a 3,000% increase since 2020.
The new offering is delivered through Potomac Union, the firm's turnkey asset management platform. Through the enhanced program, advisors will be able to implement Potomac's strategies directly within 401(k), 403(b) and other employer-sponsored plans, and to create custom allocations or use outsourced-chief-investment-officer-style model portfolios through a single operational framework.
"The data shows that investors are better off with the guidance of financial advisors," Manish Khatta, CEO of Potomac Fund Management, said in a statement. "Our SDBA program will put the power of the advisor in front of workplace retirement plan investors and their largest financial asset. It's a win-win."
Self-directed brokerage accounts, which allow retirement plan participants to move a portion of their plan assets into a broader investment universe and work with a financial advisor of their choosing, have existed for years but have seen limited adoption.
Potomac argues that the issue comes down to plan complexity and operational friction, which it plans to tackle head-on with its updated offering.
"Advisors shouldn't have to choose between flexibility and efficiency," said Jeff Goodnow, chief growth officer at Potomac Fund Management. "Our enhanced SDBA program allows advisors to customize portfolios and streamline implementation through turnkey models, while bringing that same flexibility directly into the retirement plan environment."
According to a TIAA Institute survey report last month, advised households reported an average net worth of $800,000, compared with $388,000 among those without an advisor. Researchers at TIAA estimated that professional advice may be equivalent to delivering 140 to 240 basis points in additional annual returns through improved asset allocation, tax-efficient strategies, and better use of employer matching contributions.
"Millions of people are navigating their finances without guidance they not only deserve, but that could fundamentally change their outcomes," said David Nason, CEO of TIAA Wealth Management & Advice Solutions.
The same report found that advised households were nearly twice as likely to contribute regularly to a retirement account – 30% versus 17% among those without an advisor – and that 92% of advised households saved consistently, compared with 75% of their unadvised peers.
Among Americans who do not currently work with an advisor, the most common barriers cited were a belief that they lacked sufficient assets (47%), that their situation was too simple to warrant advice (42%), or that professional guidance was not worth the cost (40%).
"Our research has identified that financial advice can deliver both quantitative and qualitative results, including higher confidence about future preparedness," said Surya Kolluri, head of the TIAA Institute.
According to Fidelity's Q1 2026 retirement analysis, the total savings rate for 401(k) participants – combining both employer and employee contributions – reached 14.4% in the first quarter of 2026, nearing the firm's recommended combined savings target of 15%. Total savings rates for 403(b) participants reached 12% over the same period.
"Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they're taking with retirement preparedness," said Sharon Brovelli, president of workplace investing at Fidelity Investments.
Average 401(k) balances were up 11% from Q1 2025, according to Fidelity, while average 403(b) balances rose 13% over the same period.
AI-driven job fears are weighing on retirement confidence, especially among Gen Z and Millennials, Thrivent survey finds
It’s the second time in as many years regulators have penalized Centaurus Financial for lack of compliance with Reg BI.
AI Teammate is embedded within Wells Fargo’s Advisor Gateway desktop platform.
Elsewhere, Ameriprise added a $470 million Wells team in New York, while an ex-Morgan Stanley advisor bolsters UBS' Austin, Texas office.
Financial advisors play an essential role in helping small business owners navigate their transition out of the company — and into retirement.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
