Potomac Fund Management, a Bethesda, Maryland-based asset manager, announced on Monday the launch of an enhanced self-directed brokerage account (SDBA) program designed to give financial advisors a direct pathway into their clients' workplace retirement plans. The firm, which now manages $4.4 billion in assets—a more than 3,000% increase since 2020—aims to address the long-standing challenge of held-away assets in 401(k) and 403(b) plans.
The new offering is delivered through Potomac Union, the firm's turnkey asset management platform. Through the enhanced program, advisors can implement Potomac's strategies directly within employer-sponsored plans, create custom allocations, or use outsourced-chief-investment-officer-style model portfolios via a single operational framework. This move seeks to reduce the complexity and operational friction that have historically limited SDBA adoption.
“The data shows that investors are better off with the guidance of financial advisors,” said Manish Khatta, CEO of Potomac Fund Management, 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 have existed for years but have seen limited adoption due to plan complexity and operational hurdles. Potomac argues that its updated offering tackles these issues head-on. “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.”
The launch comes amid growing evidence of the value of professional advice. According to a TIAA Institute survey report released 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%). These findings underscore the potential for SDBA programs to bridge the gap between advisors and retirement plan participants.
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. These figures highlight the importance of advisor involvement in helping participants optimize their savings strategies.
Potomac's enhanced SDBA program is part of a broader trend of firms seeking to unlock workplace retirement plan assets for advisors. For context, Dynamic Advisor Solutions recently entered South Carolina with Capasso Planning Partners, pushing its AUM past $7 billion. Meanwhile, a Transamerica survey revealed a 22-point gap in employer-worker optimism, with median retirement savings at $78,000, further emphasizing the need for advisor-led retirement solutions.
