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  1. Today
  2. sschullo

    403b plan for New York State educator

    Hi krow, Dan and Scotty can speak for themselves but I seriously doubt that NEA would take any outside advice. But I have been wrong before! :- ) Nobody knows the reason why NEA came up with the Direct Invest but the eerie coincidence of NEA creating this option came right after their lawsuit when two teachers sued NEA for breach of fiduciary duties. The general consensus around here is that NEA created this option as an added protection against future lawsuits. They can argue with clear evidence and say with a straight face to future judges and juries, "look we have this fiduciary (and low cost) option but as you can see your honor hardly anybody uses it." NEA case against them was beaten back twice because the judges threw it out as the 403(b) is not under the department of labor fiduciary regulations. The teacher's attorneys argued a brilliant case IF the 403(b) had fiduciary mandates. In fact, if the 403(b) was under fiduciary mandates as the 401k world, this website could be closed down and we all could go home. It's that simple. But that isn't going to happen, YET. Steve
  3. krow36

    403b plan for New York State educator

    The low-cost state 457 plan are usually added to the district's 457 vendor list because an employee has asked for it. Of course a district that was looking out for their employees would have added it, but unfortunately that's not usually the case. Neither the district HR office nor the TPA are usually aware of the importance of low-costs. Any low-cost option is only added to the list due to employee pressure. Sometimes it doesn't take much, sometimes persistence is needed. The exception might be the NEA Direct Invest option. Security Benefit's main business is selling very expensive annuity and mutual fund 403b plans to unsuspecting teachers. However NEA, the national teachers union, has sponsored the ultra-low-cost Direct Invest plan. NEA also allows the NEA label to be attached to other very expensive Security Benefit 403b plans. Security Benefit pays NEA several million a year for the use of the NEA label. NEA Direct Invest most likely exists because Dan (owner of 403bwise) and Scotty (CFP and contributor) talked to an NEA official. All the low-cost 403b plans are internet and phone based, NOT local rep-based. Unfortunately teachers seem to think they need a local rep, mistakenly thinking the rep is looking out for their best interests.
  4. 457 plans are definitely not on my district’s list, but I will definitely do some research into it. Thanks so much. I didn’t realize that even if they didn’t have vendors it was a plan I could still participate in.
  5. krow36

    403b plan for New York State educator

    I think you were misinformed. The NY State 457 plan is being used by many NY state teachers who post on this forum and on the Boglehead forum. You should check on your district's 457 list of vendors. If it is not on the list, it likely possible to add it without much resistance from the district or TPA. Give the plan a call and they can helpful.
  6. I recently heard about the 457 plan from a NYS employee that is NOT a teacher. From my research I don’t believe I can start a 457. Am I off base with this? Is that something I can start?
  7. Yesterday
  8. krow36

    403b plan for New York State educator

    LiT, I agree with Steve and you that the NEA Direct Invest plan is excellent and your only low-cost option. That assumes that you choose the Vanguard index funds as discussed in the link that Steve provided. The target retirement funds and other actively-managed funds are too expensive. Are you aware of the excellent 457 plan run by NY state?
  9. sschullo

    403b plan for New York State educator

    Hi Lit, Fortunately, you do not have to wait for a response. Your question has been discussed for the last couple of years on this forum. What you want is NEA Security Benefit DIRECT INVEST: here is a discussion on this, http://board.403bwise.com/topic/7040-aspire-or-nea-direct-invest/?tab=comments#comment-39356 And one of our esteemed posters, Ed, wrote this on his blog: https://educatorsfightingforfairness.wordpress.com/security-benefits-nea-directinvest/ There are other discussion threads, just use the search feature. Ask your employer if a 403b Roth is available. Good luck, Steve
  10. Hi all! I’m in the market for a 403b and just wanted some advice for a New York State teacher. My options are in the attached po. I am not interested in an annuity only 403b. I’d prefer a Roth 403b if available. In my research it seems like the NEA Security Benefit might be my best option, but I would love to get some other opinions. Thank you!
  11. Last week
  12. jebjebitz

    questions to ask my plan manager

    Hi Matt, i would call and stay on top of them. You might have to call more than once. I think your main focus should be getting that account active and getting access to the online platform. I signed up using the Docusign online application and waited a long time before I had an established DirectInvest account. In contrast, I helped someone at work set up an account and they were good to go in just one week. Good luck. Let us know how it goes
  13. 403Learning

    Security Benefit’s NEA DirectInvest number.

    Thanks. I filled out the paperwork over 2 weeks ago. They tell me it is in process and should take 5-7 days. I will have to call them and see what is going on.
  14. krow36

    questions to ask my plan manager

    I'd give them at least a week and then call and ask for a progress report. Some posters have used email to communicate, and you might ask them about that. Good luck!
  15. matt rector

    questions to ask my plan manager

    Hi Guys I have submitted the NEA Direct invest paperwork to Security Benefit.... Should my next move be to call the Security Benefit helpline (800 747 3942) to move things forward? Or what should I do next ? I just don't want to do the wrong thing so they throw a roadblock in my way. Thank you for your help on this!!!!!
  16. As is documented, I had a terrible time finding anybody at Security Benefit who could speak knowledgeably about NEA DirectInvest. According to a boglehead user, 800-747-3942 is their direct number and the folks who answer that line are helpful and knowledgeable. https://www.bogleheads.org/forum/viewtopic.php?t=260609
  17. EdLaFave

    403b Business Venture

    lol here we ago again.
  18. sschullo

    403b Business Venture

    Tell us more.
  19. 403bannuitysalesman

    403b Business Venture

    Someone needs to start a business where they assist districts across the U.S.A. in implementing no-cost 403b-7 plans. This should be a mandatory enrollment, single provider concept.. One would think it could be accomplished if the districts' have the teacher's best interest in mind. It would also get rid of all the sleazy, corrupt, salespeople that steal teacher's hard-earned money. It is a disgrace that teachers are given crappy products, poor advice, etc. by their districts and someone needs to step up.
  20. https://clark.com/insurance/variable-annuities-vs-life-annuities-by-the-number/ Not a new article, but pretty much straight to the point.
  21. Earlier
  22. sschullo

    "403(b) Plans not Adding Up" by W. Scott Simon

    You're welcome krow. We need Scott and others working together to keep bringing this terrible problem to the front again and again so that more of our colleagues will get wind of it and make changes. One thing that I all know, if we give up, the problem will never go away.
  23. EdLaFave

    Can Vanguard Remain Alone?

    Perhaps I have an incomplete picture. What exactly were their problems with the fiduciary rule and didn’t they withhold support because they had problems with the regulations? I don’t find these to be compelling reasons to speak out against the rule: https://www.etf.com/sections/features-and-news/vanguard-why-proposed-fiduciary-rule-unfit/page/0/1 ...then you’ve got Vanguard changing the language that was talked about earlier on this forum. They’re making me feel uncomfortable.
  24. tony

    Can Vanguard Remain Alone?

    Vanguard was not opposed to it. They recommended that the DOL should revise, not revoke, the rule. They offered their reasons is a letter to the DOL.
  25. krow36

    "403(b) Plans not Adding Up" by W. Scott Simon

    Steve, thanks for the link. It's great to see that Simon has returned to the K-12 403b problem again. Although M* pushes a subscription, it doesn't cost anything to sign in for a Basic "subscription". That gets past the pay wall.
  26. EdLaFave

    Can Vanguard Remain Alone?

    I really only care about two things: 1) Am I well diversified. 2) Am I keeping as much profit as possible. That’s it. That’s all I care about. The end. Sure I think Vanguard’s corporate structure is more likely to deliver those two outcomes, but I have to live in reality, not just theory. The reality is that Fidelity has produced well diversified index funds with ZERO fees. I’m waiting a year or so to fully evaluate it, but I’ll be very surprised if I don’t switch. Thanks to Vanguard, index funds are a commodity, not a product. It doesn’t matter where I buy it, it only matters what I pay for it. Also I’m not impressed with Vanguard’s shift in culture. Opposition to the fiduciary rule was a clear signal to me that they aren’t on the investor’s side. Sure, I don’t think Fidelity is either. That’s fine, now that we have index funds and a price war over them, the only force we need on our side is an insatiable consumer desire for NO fees...or better yet, interest earned on the money I invest in a fund!
  27. sschullo

    Can Vanguard Remain Alone?

    Hi Tony, I am too old to be "irritated" by your posts regarding investing. :- ) I judge each one of them by their merit. I don't respond to most of them. I agree with you that most people will not go out and buy a book, much less read it. I just think this particular article is biased against Vanguard, perhaps causing confusion for those who lurk here once in a while. Some will go back to their agent convinced that Vanguard is no different than the vast majority of investment companies and annuities. OF COURSE, we know better, but people who lurk might not be. Worse yet, since this article is on 403b wise, it must be accurate. I just wanted to set the record straight. That almost all of us who frequent here will love Vanguard for many years. Have a great day, Steve
  28. tony

    Can Vanguard Remain Alone?

    Steve , I realize it irritates you when I post articles, it's pretty obvious to me but we need to promote investment literacy and a broader view of what makes saving a successful endeavor . Not everyone who comes here is going to go out and read our favorite books we recommend here. So the articles are useful to many and some folks have messaged me and told me so. We are starting to give the impression here that if you get a low fee fund than you will be a successful investor. And ,if you pick a fund a few basis points higher, its the equivalent of total failure. It 's just more complex than that. You can be in a low fee investment and still underperform someone in an annuity if you are not doing other things right. Being 403bwise is more than just a low fee. And the math alone does not tell the whole story. Just how I feel about it. And I don't write any of this with any hostility just that the feeling is we may be helping people less than we think when we focus only on low fees and not much more.
  29. tony

    Can Vanguard Remain Alone?

    Ed, It confuses me that fees alone seems to be the only thing that matters to you when deciding who or what is best. That is a huge blind spot when you reduce everything down to who has the very very lowest basis points when in truth it's insignificant. You obviously are not considering other important things like corporate culture and corporate mission and breath of low cost choices. Fidelity may have the lowest fund fee on a very few funds but on their part its just a ploy to draw investors in and then cleverly move them into higher fee investments. I don't understand the obsession among some of you that want the absolute lowest fee at all costs when other factors in the funds structure may also affect performance . This reminds me of the housewife who drives miles all over town to save a dime on toilet paper, saves that dime, but then realizes her new cheaper brand has thinner sheets. As mark Twain once quipped. "Some may have the words but they don't have the music"
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