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  1. Yesterday
  2. MNGopher

    Aspire or NEA Direct Invest

    Great news for you! The 403B(7) is non-annuitized and is a much better option for you for all the reason krow36 mentioned, plus I would assume, no surrender fee, and in general just easier to track your investments and performance. The "sub accounts" of traditional 403B annuities are very confusing and difficult to track what you are actually invested in.
  3. krow36

    403b plan for New York State educator

    Does your district have no 457 plan vendors? If so, it's possible that the school administration needs to have a written and signed 457 plan for their employees, and that they don't have it. From your screen s of the 403b vendor list, the district is using a third part administrator (TPA). Was that who you asked about the 457? If not, see what the TPA says. I’d give the NY state plan a call back and see if they can help you get the district to cooperate. You could also find out who makes the decision about 457 plan. It’s probably not the HR person that you talked to.
  4. TonyZ

    Aspire or NEA Direct Invest

    K so Type of funds also has a direct correlation with the fees and costs of the fund. I’m glad I can pay less fees with Direct Invest. Thank you
  5. Last week
  6. I contacted my district office because I found on the NYS Deferred Compensation 457 site that my district was participating, but my district said they do not participate nor do they have plans to. So the battle begins ...
  7. krow36

    Aspire or NEA Direct Invest

    The "funds" in a 403b annuity are indeed different from the mutual funds in a custodial 403b7 account. The insurance companies often call them "sub accounts" instead of funds. They are based on mutual funds but have higher expense ratios (ERs) due to costs added by being offered by the insurance company. In addition, the 403b annuity will have a "mortality and expense" fee of at least 1% and probably an administration fee of maybe $35. The total fees frequently add up to over 2%! This compares the the SB NEA Direct Invest plan using the 3 Vanguard index funds where the total fee adds up to about 0.07% (if the balance is over 50k so that the $35/yr fee is dropped). The difference between an annuity-based 403b and a mutual fund-based custodial account 403b is not just due to a sub account/mutual fund difference. It's all the extra fees in the annuity.
  8. TonyZ

    Aspire or NEA Direct Invest

    Okay, I think I get it now. This is like another language but once you know it you get it. Bc of the type of funds provided is why it’s a 403b(7). So much to learn. Thank you
  9. krow36

    Aspire or NEA Direct Invest

    The 403b(7) designation means that it a mutual fund based 403b plan, called by the IRS a "custodial account". Prior to the 403b(7) law, all 403b plans were annuity plans offered by insurance companies. Being self-directed is not a factor. Security Benefit has 403b(7) plans that are sold by local reps and are very expensive, with fees over 2%. SB's NEA Direct Invest is the only low-cost custodial account they have.
  10. TonyZ

    Aspire or NEA Direct Invest

    Hey Guys, I have stopped my contributions to Axa and have signed up with NEA Direct Invest. I have done some research and want to make sure I’m correct, a 403b(7) is a self directed tax sheltered account? Thank you
  11. TonyZ

    Aspire or NEA Direct Invest

    Hey Guys, Hope Everyone had a great week. I stopped my 403b payments to Axa and applied online to NEA Direct Invest and waiting to hear back from them. Question: The account is listed as a 403b(7). I did some research and I just want to make sure that I’m right. From what I gathered because it’s self directed it’s a 403b(7) and not a 403b. Is that correct? Thank you in advance.
  12. krow36

    403b plan for New York State educator

    Dan and Scott tell the story on Episode 26 of their April 2016 podcast. By chance, Dan met an NEA Members Benefit official at bus stop in MD where he was living. Some time later, Dan and Scott met with him for dinner. They tried to convince the official that NEA should be offering teachers a low-cost 403b plan, not the very expensive “NEA Value Builder” products. Several years later the official called Dan and asked advice on fund offerings in the low-cost plan. Dan and Scott do not know for a fact that they were instrumental in the establishment of NEA Direct Invest, but it seems highly likely to me. You can listen to this story starting at minute 21 of Episode 26. http://teachandretirerich.libsyn.com/page/2/size/26 I don't doubt that the lawsuit also figured into reasons that NEA and Security Benefits decided to create a very low-cost 403b option.
  13. 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
  14. 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.
  15. 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.
  16. 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.
  17. 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?
  18. 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?
  19. 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
  20. 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!
  21. 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
  22. 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.
  23. 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!
  24. 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!!!!!
  25. 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
  26. Earlier
  27. EdLaFave

    403b Business Venture

    lol here we ago again.
  28. sschullo

    403b Business Venture

    Tell us more.
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