Does this sound familiar: “Free retirement consultation! Lunch included! University approved!”

Messages like these might appear in your email, and more than once. Here’s a golden rule when considering unsolicited messages: Don’t be fooled by unscrupulous businesses looking to make a buck at your expense.

Legit or Not?

Reports of faculty and staff receiving unauthorized and sometimes misleading financial adviser solicitations are, unfortunately, common on all campuses.

These emails and invitations to your office or home may offer a meeting to assist with your retirement account(s). Some even imply that U-M endorses their services, or that they have an affiliation with U-M. More of these misleading messages are coming from outside of Michigan. 

Another golden rule: U-M provides comprehensive retirement planning services only through TIAA and Fidelity Investments. These services are designed to help you manage your retirement savings plans and engage in thoughtful, long-term planning.

Proceed with Caution

If you don’t have an established working relationship with a financial adviser offering to meet with you, proceed with caution. It's easy to confuse these unauthorized solicitors with university-authorized Fidelity and TIAA financial planning reps. Fidelity and TIAA have dedicated teams of extremely knowledgeable representatives well versed in the details of U-M's retirement plans.  

Below are examples of solicitations that should be considered with skepticism: 

• They say they serve “university employees,” but don’t name U-M.
• They say that you are eligible for a free consultation each year as a university employee as part of your employer’s retirement plan. 
• They refer to your pension or a pension plan review, even though U-M does not have a pension. These often are meant for individuals who have a pension through a public school system or university. These firms may have limited knowledge of the U-M retirement savings plans.

Some firms will use U-M's trademark block M logo in their digital messages or on their letterhead, which gives the impression that they are a U-M partner.

Others set up in buildings or outdoor areas on U-M campuses to offer their services. Being on our campus does not mean they are affiliated with or endorsed by U-M. Golden rule #3: If it’s not Fidelity or TIAA, it’s not an approved U-M partner.

Most of these external vendors aren’t scammers; they’re simply looking for opportunities to increase their business or sell products outside the U-M plans. You aren’t limited to working only with Fidelity and TIAA regarding your U-M retirement investments; however, do your homework before entrusting an unfamiliar business with your funds. 

What to Look For

Always ask for and carefully read the adviser’s “Form ADV,” which registered investment advisers (RIA) must complete to register and file with the Securities and Exchange Commission (SEC) and/or state securities regulators.

It is possible that you may not have been contacted by an RIA, but by an insurance agent or salesperson.

The Form ADV reports each RIA’s professional background, including business, ownership, clients, employees, business practices, affiliations, current registrations, employment history, and disclosures about certain disciplinary events involving the individual. You can view an adviser's most recent Form ADV online by visiting Investment Adviser Public Disclosure (IAPD), an official U.S. Government site.

If an individual is offering to sell you investments, find out whether the person is registered with the Federal Industry Regulatory Authority (FINRA) or the SEC. Use FINRA BrokerCheck or call the FINRA Hotline at (800) 289-9999. If the person is registered, be sure to check for any red flags raised by employment or disciplinary history.

Be Wary if…

• You’re invited to a seminar that features a free lunch, or you’re charged a fee. 
• You’re encouraged to open an Individual Retirement Account (IRA) to buy investment products. These require careful due diligence and research. You may be pressured to buy products that have substantial risk, carry very high fees and commissions (such as certain insurance products), or have surrender periods during which you can’t get your money out of the product you purchase.
• You’re encouraged to roll over to an IRA. There is no requirement that you roll over your assets out of the U-M plans when you leave the university or retire. However, there are some very significant advantages to having assets in the U-M plans that you will lose if you roll over to an IRA. View matters to keep in mind in the “Before You Take an IRA Rollover” section.