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  2. Hi Everyone, I am new to the board. I want to start out by saying how grateful I am in advance for this resource and for any help you can provide. My wife is a new teacher in Chicago Public School system and we are looking at her investment options. We apparently only have two choices -- VOYA and VALIC. I took a cursury glance at these. Good option seemed to be in Valic---Vanguard Total Bond Market Index 30% and Fidelity Total Market Index Inv 70%. Second choice option: Vanguard Target Retirement Funds but the fees are much higher than I liked. I am not sure if these are in the 457 plan or the 403b Plan My wife would rather have flexiblity of 457 if it is possible. Would love to hear what you guys think of the Chicago Public School District Options. Thank you very much in advance. -Kristy VOYA website VALIC website Fund Overview – Provides the investment objective, holdings, a breakdown of the fund's assets by industry, the risk level, and the fund manager for each of your available investment options. Fund Performance – Lists all of the available investment option returns for: year to date, one year, three years, five years, 10 years or since inception. Online Prospectus –The most up-to-date regulatory documents associated with your Plan, including fund prospectuses, annual reports and semi-annual reports.
  3. Which 403(B) Is Best?

    Here’s the Alabama Education Association (AEA), website: http://www.myaea.org/benefits/financial-benefits/ Under Retirement, I see the following: NEA® Retirement Program – “Participate in the NEA® Retirement Program, a supplementary retirement savings program specifically designed to help NEA members reach retirement goals.” This program uses Security Benefit, not Nationwide. https://www.neamb.com/finance/nea-retirement-program.htm NEA used to have 403b plans with Nationwide, but Nationwide sold their NEA Valuebuilder accounts to Security Benefit (SB) in 2000 for $72M. SB is an insurance company that sells mostly very expensive annuity-based 403b plans. SB pays NEA about $2M a year for the privilege of attaching the NEA logo to their plans, aimed at the K-12 market. As Ed has mentioned, Security Benefit now offers an NEA Direct Invest with very low-cost Vanguard funds. This is an internet based 403b which bypasses the local reps. This is the only SB 403b plan that any of us here at 403bwise would recommend. It’s a mystery why your HR office refers to a Nationwide AEA 403b?The AEA website links to the Security Benefit and then to the NEA Direct Invest plan. This would be an excellent 403b plan to hold your $6,000 and to contribute to when you can. I suggest you contact the HR office and explain that the AEA is a branch of the NEA and you should be able to use a Security Benefit 403b.
  4. It seems to me that it depends how much you put in a year. With the number of teaching moves you have made you might be better off putting money into a roth ira until you reach the max. this way if change districts again the roth is seemless with the move. After you reach the MAX on the Roth you can start contributing to either the Fidlity roth or the Vanguard 403b which are great options i wish I had. Rich
  5. Which 403(B) Is Best?

    1. I agree with Tony stop contributing to the 403 b and start a roth IRA with vanguard. 2. You mention your husbands company offer a 6% match thats free money so take advantage of it Rich
  6. Tiaa Ny Times Article

    I really wish TIAA would come out with a detailed response.
  7. Tiaa Ny Times Article

    Another NY Times article on TIAA, published Nov 14, this one by Tara. https://www.nytimes.com/2017/11/13/your-money/tiaa-403b.html?rref=collection%2Fsectioncollection%2Fyour-money&action=click&contentCollection=your-money&region=&module=stream_unit&version=latest&contentPlacement=1&pgtype=sectionfront&_r=0
  8. Guaranteed Interest account AXA

    Please do keep us updated, and yes it can be very frustrating dealing with this stuff. I wouldnt say smart, just very lucky!
  9. Custodian Cleans Up His 403(b)

    Great podcast! Goes to show you what determination and some knowledge can accomplish.
  10. Guaranteed Interest account AXA

    Thanks for your reply. I finally did get my account set up at Aspire and am putting through paperwork tomorrow to change my contributions from AXA to Aspire. Then I need to contact AXA to see what paperwork I need to initiate a transfer of all but my guaranteed interest account. I am anticipating it will be a PIA, but necessary. Aspire took longer than it was supposed to, 15 business days, but they answered my questions quickly so that’s what I care about. No doubt AXA will drag their feet but as long as I’m not sending more money their way, I’m happy I don’t know about you, but I am sick of trying to make these financial decisions! 😁 I will post an update on how this all goes. Thanks! Married to a Library Lady? Obviously you are a smart man.
  11. Guaranteed Interest account AXA

    Sorry, I would've responded sooner but I've been out of town, literally off the grid, for the past week on a hunting trip.
  12. Guaranteed Interest account AXA

    LibraryLady, as you mentioned, there are no fees on the GIF unless the account value is under $25k then there is a $30/year administrative fee. This is what I've been told by a senior manager and the returns of my wife's account domreflec the 3% return. It's killing me that AXA has a large chunk of our money but it's stuck for now and there is nothing we can do about it. I'm considering moving the entire balance into the GIF until that time when we can rollover. Best I can tell, the rest of the account would have to do better than 5.44% to just break even after fees. I don't know if this makes sense of not. BTW, my wife is as a "LibraryLady":)
  13. Earlier
  14. Forum Upgrade

    OOPS, I see that to make any corrections to the "preview", you have to close it and go back to the original, where all editing tools are available. Makes sense.
  15. Hey All, Scott and I just had perhaps our most interesting podcast ever. Enjoy... Teach and Retire Rich podcast #53: Custodian Cleans Up His 403(b): From annuities to a high six figure balance.
  16. Tiaa Ny Times Article

    Here's a followup NYTimes article on TIAA's problems, published today Nov 9. The NY State Attorney General is now getting involved, in addition to the feds. https://www.nytimes.com/2017/11/09/business/tiaa-subpoena.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region&region=top-news&WT.nav=top-news&_r=0
  17. Now I haven’t fully studied the new fee structure for Vanguard’s 403b but as I understand it, they charge you a flat fee and give you access to the lower cost admiral shares no matter how much/little money you have. If I understand you correctly you’ll be contributing to a Vanguard 403b no matter what you do with your old 403bs, which means you’ll be paying that flat fee no matter what. So the real question is, which options allow you to make the most use of admiral shares? If you prefer a one fund portfolio then admiral shares aren’t available and in terms of fees it doesn’t matter if you roll the old 403bs into an IRA or the new 403b. If you prefer a three fund portfolio then admiral shares are available and the question becomes whether your old 403b accounts are big enough to allow you to buy admiral shares in an IRA. If yes then it doesn’t matter if you roll over to an IRA or the new 403b. If no then you can save money by rolling it into the new 403b where you’ll have access to cheaper admiral shares. Another thing to consider is the fact that rolling money into an IRA makes the “backdoor Roth” less beneficial. So if that is something you may wind up doing then this should be thought out. The other thing to consider, depending on what other accounts you have, is the convenience factor of having everything in one account. There may be subtle differences in how you could gain access to funds in those accounts too...I ignore this because I don’t expect that to be an issue. You mentioned Roth as though it were inherently supperior and despite hearing people make such claims I’ve never seen the math. I believe a traditional will be best for virtually everybody because of the progressive nature of the tax code and because most people probably won’t be in a higher tax bracket in retirement. When you pay tax on a Roth it is being paid at your highest marginal tax bracket, say 25%. When you eventually pay tax on a traditional, you get to fill up the lower tax brackets first...so even if you end up in the 25% bracket, the effective tax rate can be lower. Of course all of this assumes the tax brackets don’t change because I can’t predict how they might change. ...now if my original assumption about you definitely contributing to a 403b was wrong because maybe you can only contribute $5,500 per year then maybe you’d be better off rolling into an IRA and only using the IRA in order to avoid the flat fee charges by Vanguard’s 403b. Sorry for all the contingencies and corner cases, but you didn’t provide all of the details I’d need to analyze the situation. ...also I didn’t know what you meant when you said you have a Roth Fidelity account. It wasn’t clear if this was an IRA or a new 403b. So my post ignored this bit of information.
  18. Ava, welcome to the forum! Congratulations on listening to the podcasts and learning! Because you are transferring your AXA and VOYA 403b accounts to Vanguard, you will have a 403b with Vanguard, whether you contribute further to it or not. You probably realize that you can only contribute $5,500 per year to an IRA account. You can make a contribution for 2017 up through your tax due date in 2018. You can set up an IRA over the internet, connect it to your bank account and fund it online. Vanguard's Target Date funds have a minimum starting balance of $1000 and index funds have a minimum of $3000 starting balance. I would start with IRA because there are no annual fees on it other than the expense ratio of each fund. Hopefully you can afford to contribute more than 5.5k to retirement so then you should use the 403b in addition to funding the IRA. You'll get lots of from folks here if you ask questions!
  19. A little background... I've worked in my district since September 2016. Before that, I was working in another neighboring district in New York. I also worked in New Jersey for about 3 years, another school in NY for about a year and a half, and Connecticut for a year. I'm 31 years old and have been a school counselor since I was 22.... crazy how the years have flown by without much knowledge of 403b's and retirement accounts. I completely fell into all the traps mentioned in the podcasts. I fell for opening up an AXA 403b account at the age of 22, thinking I was being smart for starting my retirement so early. When I started at another school and considered contributing again, I realized my growth was minimal with AXA. Before opening up another 403b account with another company (I was considering Voya at the time), I inquired with AXA about transferring my funds. It was at this point I realized that something wasn't right. Trying to be more savvy, I asked the Voya "advisor" many questions before opening an account with them. I was told I wouldn't be locked into a surrender charge as long as I didn't put any money into guaranteed accounts. So that's what I did. Fast forward to today, I got very lucky that my district has done the hard work for me. They offer a ROTH 403b with Fidelity and Vanguard 403b. Learning from the podcast, I created a ROTH Fidelity account. I am in the process of transferring my AXA and Voya accounts into Vanguard, but I'm not sure if I should open up a Vanguard 403b or IRA account? Part of me feels like I should open up the 403b account so that I have it with the school just in case anything changes, but another colleague suggested I do a Vanguard IRA account so that my money is more flexible. Does anyone have advice on this? Thanks so much in advance!
  20. Guaranteed Interest account AXA

    My surrender fees were only applicable to contributions younger than 7 years, although it is different I know, for others.... any chance you can "free corridor" some of the monies out over time?
  21. Forum Upgrade

    Dan, how about a link from the forum page to the home page? I think there used to be one? Also the strike-through was missing from the edit feature. Isn't that where it's most useful?
  22. Tiaa Ny Times Article

    Here’s TIAA’s response to the NY Times article, as well as Scott’s response to TIAA’s response. http://teachersadvocate.blogspot.com Here’s Tony Isola’s take on TIAA. http://tonyisola.com/2017/11/tiaa-youre-no-vanguard/
  23. Forum Upgrade

    Thank you for kind words. Love the chart, Steve. So hopeful for people to be able to see this. - Dan
  24. Guaranteed Interest account AXA

    The administrative charge is $30 a year. If I had less than $10,000 in that guaranteed interest bucket I would transfer that to the new account in a heartbeat. Fortunately or unfortunately I have nearly 8 times that amount. Again, I am assuming I can transfer the stock portion only over and leave the guaranteed interest for now. At the moment, my account setup is not completed yet at Aspire. I plan on calling today to get some info from them. The transfer process will be much more complicated now, but hopefully they will be helpful.
  25. Guaranteed Interest account AXA

    I suspect that AXA can say "the guaranteed interest account has no fees" and mean that there are no fees that apply to that account uniquely as an expense ratio. However your contract seems to say that there is an annual administration charge that applies to the account. Do you know what it is? On the Equivest 201, it's $30/year.
  26. Guaranteed Interest account AXA

    I had a portion of my AXA portfolio in a guaranteed 3% thingy... too bad the fees ate up any benefit that might've had. My account was under certain money limit & therefore was charged an addition $30 every quarter, on top of the annual fees and expense ratios. I decided moving, even with surrender fees is better than getting eaten up with fees, especially once I redirected my contributions to the new provider.
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