Five Questions Teachers Should Ask A Financial Advisor

Five Questions NYSTRS Teachers Should Ask a Financial Advisor

As a New York State teacher, your career provides a strong foundation for retirement through the New York State Teachers’ Retirement System (NYSTRS). But understanding how your pension, 403b, and other benefits fit together can be challenging—especially with so many salespeople posing as “advisors” in schools.

Many teachers unknowingly receive advice from brokers who earn commissions from annuities and mutual funds sold in the teachers’ lounge. That’s why it’s essential to find someone who’s truly on your side—a fee-only fiduciary financial advisor.

Please take the time to review all the available 403b options in your school district. You rely on an advisor for their guidance. Shouldn’t they be looking out for your best interests at all times? For example, you can read a review of each of the eleven options available to Depew teachers HERE.

Before choosing an advisor, here are five key questions every NYSTRS teacher should ask.

1. Are you a fee-only fiduciary?

This is the most important question you can ask.

Being a fee-only fiduciary is the highest standard a financial advisor can be held to. They must act in your best interest at all time and is paid only by you—not by commissions or product sales. That means their advice is unbiased and transparent.

If an advisor earns money from selling annuities, insurance, or mutual funds, they’re not truly independent.

Do not settle for just a fiduciary, make sure they are fee-only. This ensures they work for you—not for an insurance company or investment firm.

You can read why we became fee-only here.

2. Does your financial advisor understand NYSTRS pension benefits?

Your NYSTRS pension is likely your biggest retirement asset, and it should drive much of your financial planning. Ask your advisor:

• Do you understand how NYSTRS calculates Final Average Salary and service credit?
• Can you estimate my pension options and survivor benefits?
• Do you know how district-sponsored health insurance works in retirement?

A knowledgeable NYSTRS-focused advisor can help you coordinate your pension, 403b, and Roth IRA accounts so you can retire with confidence and a predictable income stream.

You can read more about how we work with teachers here.

3. How are you compensated—and what are my total costs?

Transparency matters. A fee-only advisor should be able to show you:

• Exactly how they charge
• The total annual cost you’ll pay
• Whether your investments include additional fund expenses

Teachers are often sold high-fee annuities inside their 403(b) plans—some costing 2–3% per year. Over time, those fees can reduce your retirement savings by hundreds of thousands of dollars.

A fee-only advisor uses low-cost, no-commission funds keeping more of your money working for you.

We keep it simple, we charge 1.25% for financial planning and investment management.

4. What’s your investment philosophy?

Look for an advisor who believes in diversified, evidence-based investing, not one chasing hot funds or pushing products.

Ask:

• Do you use low-cost index funds?
• How do you manage risk as I get closer to retirement?
• Do you receive commissions from any of the investments you recommend?

Be cautious if they talk about “top funds,” “exclusive products,” or “guaranteed returns.” A true fee-only fiduciary doesn’t sell products—they build plans designed for your goals, risk tolerance, and retirement timeline.

We believe in using low-cost index funds to keep more money working for you.

5. Do you provide full financial planning or just investment management?

Teachers have unique planning needs. A qualified advisor should help you with more than just investing:

• NYSTRS pension estimates and retirement timing
• 403b and 457b savings coordination
• Student loan forgiveness strategies
• Tax planning for pension and retirement income
• Social Security integration
• Insurance Planning
• Estate Planning

A CFP® professional specializing in NYSTRS teachers will connect all these pieces into a clear, actionable retirement plan.

We provide full financial planning to all our teacher clients.

Final Thoughts

Your NYSTRS pension gives you a strong start—but how you manage your savings, benefits, and income around it determines your long-term security.

Working with a fee-only fiduciary financial advisor who understands New York teachers’ pensions and 403b plans ensures your plan is built around your best interests—not commissions or products.

At Bentham Wealth Advisors, we specialize in helping NYSTRS teachers across Western New York plan for confident, low-stress retirements.

If you’d like a complimentary review of your NYSTRS benefits and 403b plan, schedule a consultation to see how we can help.