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  2. Frequent trading policies; Best Fund Family?

    I just finished reading Bogle’s “Common Sense on Mutual Funds”. I highly recommend reading this before pursuing this strategy.
  3. Frequent trading policies; Best Fund Family?

    Dear 403BIdiot So you want to time the market? This site does not believe that timing the market is very smart. You say it seems to work but will it always work? Probably not. You are going to get caught with your pants down sooner or later. If you want to buy ETF's and trade them often your 403b plan has to provide access to them and then you will have to consider if they will allow frequent trading. Chances are you will have to self direct into an ETF fund within a fund family that will allow what you want to do. Still, I think you taking a bad approach . Specifically, what is the point of this in a 403b retirement account??
  4. Yesterday
  5. Frequent trading policies; Best Fund Family?

    yes that is what i meant: I want o be ABLE to buy shares and hold less than 30 days. Something I rarely do, but some times i have reason to do it and I am generating LT returns of about 9-10% so it seems to work ok... just asking if any mutual fund family allows me to do that. How can i set up my 403b so I can buy ETF's?
  6. Last week
  7. 403(b) Choices

    Sorry for being a little late to this discussion. Kevin, thank you for sharing this, and thank you for trying to make sense of the insane world that is the K-12 403(b). Thank you too to all of the 403(b) advocates helping you out. I don't believe this was shared but if you want to use an advisor ask them these questions: https://403bwise.com/pdf/403bwise_Advisor_Questionnaire.pdf and make them sign this pledge: https://403bwise.com/pdf/403bwise_Fiduciary_Pledge.pdf We have created a special directory of fiduciary advisors who pledge to answer these questions and to sign the Fiduciary Pledge. These advisors will work across state lines. I know that Amy and Anthony are in the New York area: https://403bwise.com/directory
  8. Questions about Roth and Real Estate

    Here’s what the IRS says about Roth IRA distributions in Pub 590B: So, there’s not tax or early distribution penalty on the direct contributions to her Roth IRA. By “principal” do you mean direct contributions? Converting a tIRA to a Roth IRA is not a direct contribution but a conversion and there are different rules for that.
  9. I'm curious if anyone has any experience. My partner, Nora, and I are both teachers. We are about to close on a rental property that we will rent to her mother/my mother-in-law so that we can keep her close to home so we can balance care/support and our mother's independence (she has Parkinson's.) 1. To make the down-payment, we withdrew $22,000 from Nora's Schwab Roth IRA. To do this, we had to liquidate some ETFs. I chose to liquidate the ones that had gained the most and then withdraw the an amount equal to the principal that Nora has deposited in the last 4 years. My understanding is that, because it is principal, we will pay no penalty or tax. Does anyone know if I have this right? 2. Would it be possible to make the rental property part of Nora's Roth IRA... and if possible, might this be a good move? Thanks for the advice!
  10. 403b Questions/Options

    I use Security Benefit's NEA DirectInvest and I documented the plan here. I documented exactly how I enrolled in the plan here. I'm an enthusiastic support of NEA DirectInvest and I couldn't be happier with it. However, it is worth acknowledging that Security Benefit is an unethical company and through a mixture of incompetence and shadiness they won't help you too much in setting up the account...it is largely on you to fill out the correct paperwork. Aspire is costing you an extra 0.15% per year plus an extra $5-$40 annual fee depending on your balance. Only you can determine if the headache of switching is worth the savings.
  11. HEY LAUSD COLLEAGUES!!! Every one must read this story about two teachers who saved and invested and are worth over a $million, and they are in their early 50s, and on Teacher's SALARIES! Many of you with just 20 years in the classroom and living in expensive Los Angeles and California may not realize that you might already be millionaires even if you have never saved a penny on your own. With that many years, LAUSD teachers have healthcare paid for the rest of your life with 20 years (Only 4 California districts offer paid healthcare during retirement!). Healthcare alone is worth a lot of money! And then we also have a PENSION! Folks, it can't get better than that. Sadly, educators hardly ever count their pension benefit. It's real money. I know, I get a check every month, and I have gotten almost $500,000 in benefits in the last ten years of retirement, and only worked 24 years as a teacher, and retired at 60 and I am only 70 years old. But I started late, and still retired early! CalSTRS pension plan with over 30 years of retirement is worth over a million. So, if you DID save an additional 10 to 15% of your income and invest in the district's 457b Award-Winning low-cost plan for 20 years, you could retire easily in your late 40s or early 50s, and go on to another career or live in Mexico too. ESIMONEY.COM Millionaire Interview 63 - ESI Money This interview with a millionaire shows that you don't have to earn a high salary in order to accumulate a good net worth. It also illustrates how you can retire early and even go back to work for a bit if you want to. With financial independence, the choices are yours!
  12. Earlier
  13. 403(b) Choices

    Hopefully the NY state 457 info will motivate your HR department to add it to the vendor list. I think it’s probable that adding it will require a buy-in from a higher-up in the district. If you find out who actually makes the decision, and if rules have been established for making additions, you’ll be better able to focus your efforts. Kevin, the link you provided for Legend doesn’t give the info that you need, which is: the names of the different 403b plans that Legend offers in her district. You need to know the funds and their expense ratio offered in each plan, and each plan’s fees (mgt/wrap fees, flat fees/yr etc.). I don’t know if you can pry this info out of her current rep? You may have to talk to his boss or his boss’ boss? I looked at the 403b plans that Legend offers in CA. https://www.403bcompare.com/vendors/1052#/productlist Granted they may offer different plans in NY. Only FREEMARK and STARS look to be worth a quick look: FREEMARK: Mgt/wrap fee is 1.25% to 2.25% with breakpoints, 7 Vanguard funds including 500 Index, Small Cap Index, Developed Mkts (Int’l) and Total Bond Index. I think the 2.25% mgt/wrap fee for her 10k makes this plan way too expensive. (Breakpoints allow different fees depending on the account's balance. 10k would no doubt get her the most expensive fee.) STARS: Mgt/wrap fee is 1.50%, 9 no-load funds including TIAA S&P 500 Index (0.06%), TIAA Int’l Eq Index (0.06%), TRPrice US Bond Index (0.30%). Also too expensive in my opinion. As for getting a better 403b plan from Lincoln Investment (LI), you should try to get the Participant Directed Platform for her. If that is unsuccessful, find out if the LI Retirement Solutions Premier is available. It’s available in CA: https://www.403bcompare.com/vendors/1068#/productlist In CA it has a mgt/wrap fee of 1.25% (and an optional advisor fee of 0.3% which she doesn’t need), and 65 Vanguard Investor class funds. This plan is expensive but it offers more diversified and much lower-cost funds that what she is in now. You should find out if her current LI plan allows her to drop the advisor and his fee. If so, what are the remaining fees? The weighted expense ratio of her current funds could be greatly reduced it she dropped the expensive funds (0.90% and above) and moved that money into the lower ER funds: FDBAX-Federated Bond Fund Class A Shares, Corporate Bond, ER 0.86% GFAFX-Growth Fund Of America Class F-1, Large Cap Growth, ER 0.70% I think she (and you?) have online access to her account? If so, this exchange may be able to be done online (maybe after dropping the “advisor”?). Otherwise by mail, or through the rep. I think you need to be with her when dealing with the rep, and be prepared for what you (and she) want from him.
  14. 403(b) Choices

    Talked to the account executive from the NYS Deferred Compensation plan that's responsible for our county. Her school is not on their list. At this point he told me to get his information into the hands of HR so she can reach out to him and try and get the ball rolling to make this happen. So if this happens that solves the solution of where to put new money. Still trying to get through to higher ups at Lincoln to see what she can do about her 403b investment.
  15. 403b Questions/Options

    Thank you, Tony. That sounds great and I appreciate your input. In regards to your question, I do have some international exposure as well. I'll let you know if I have any other questions in the meantime! Best, Dan
  16. 403b Questions/Options

    Dan My index funds did very well when I was with Aspire.I saw growth equivalent to regular directly owned vanguard index funds. The last 7-8 years before my retirement I owned Vanguard funds through Aspire. I also tapped into our state 457 plan that was too good to pass up. They had Blackrock index funds that rivaled Vanguard in cost and in some cases even cheaper!. The 457B plan had a .19 administrative fee but rock bottom fees on expense ratios. Personally, you are in a good place with Aspire and I don't think I would move. Your fees are very low. You should be content. You are correct about Security benefit. They sell many high fee products. I would focus on making sure you have a diversified portfolio . If you can, go help others move away from the bad guys who are ripping them off and towards Aspire. Also do you own any other fund besides Total Stock Market? You might want to add an allocation to total international and total bonds through Vanguard.
  17. I recently had my students study the Pecora hearings that led to the securities act of 1934 after the Great Depression. The very next lesson was viewing "The Big Short" and Dodd-Frank. My students have written things in their exit tickets/assignments that are evidence of exactly the kind of suspicious and critical thinking mind I think we all share (and aim to help others with.) I am convinced that it is morally imperative to teach this sort of thing. As one student wrote, "(after studying Pecora and "The Big Short") I now know you can't just go into any bank. You have to do the research and understand what tricks they might be trying to pull and how much risk you're willing to take."
  18. Great resource for teaching Personal Finance

    Steve! That's awesome. I know there are more finance teachers like me that are trying to be forces for good in their own schools, districts, and unions. Reply or note again when/if you get on the podcast so I can share in my circles. - Voss
  19. 403b Questions/Options

    Thank you, krow36. Security Benefit is offered as a 403b in my district. I already previously switched 403b vendors from MetLife to Aspire over a year ago. I guess I circle back to my original question of whether or not I should switch over from Aspire to NEA Direct Invest through Security Benefit. I have done some reading and it looks like there is a some shady behavior on behalf of Security Benefit and maybe still perhaps some learning to do with Direct Invest? Wondering if I should just be satisfied with Aspire.
  20. 403b Questions/Options

    Yes, VTSAX at an ER of 0.04% plus the 0.15% is probably the lowest cost per fund balance possible through Aspire. The additional $40/yr fee does add to 0.19%. As you've mentioned, using VTSAX in the Security Benefit NEA Direct Invest will cost only the fund's ER of 0.05% if the balance is above 50k, and an additional $35 if the balance is under 50k. Since you've said that Security Benefit is a 457 vender for your district, I assume it is also a 403b vendor. If that were not the case, I would recommend being satisfied with Aspire. Working to add Security Benefit to a vendor list is not ethical in my opinion due to the predatory nature of their plans other than Direct Invest. You might benefit from using Direct Invest but many (most?) of your colleagues will end up in high-cost (over 2% in fees!) plans.
  21. 403b Questions/Options

    Actually, I just checked my allocation. I am 100% invested in Vanguard Total Stock Market Idx Adm (VTSAX). This is the best I'll get, correct?
  22. 403b Questions/Options

    Okay great! This is really great information, Tony and krow36. I appreciate it! I will follow up with Aspire now and will circle back to this forum. Thank you once again! Best, Dan
  23. 403b Questions/Options

    VTSAX is listed on the Aspire website as available. Best give Aspire a call if in doubt.
  24. 403b Questions/Options

    Krow I owned Vanguard through Aspire before I retired. They did NOT convert the shares to Admiral. I was stuck in investor shares .At the time Admiral shares were not even available for me. Don't know if things have changed or not.
  25. 403b Questions/Options

    Vanguard funds come in 2 classes, Investor and Admiral. The TSM Index Investor fund has an ER of 0.14% and the TSM Index Admiral fund has an ER of 0.04%. Once the balance in the index Investor funds gets to 10k, Vanguard will convert the Investor shares to Admiral shares. I'm not sure if Vanguard requires Aspire to start you out with Investor shares, or lets you start out with Admiral shares. I think in the past it was allowed, but I'm not sure. You should ask Aspire. In accounts held directly with Vanguard, once you have a 10k balance in the Investor fund, Vanguard will ask you if you want to convert to Admiral shares.
  26. 403b Questions/Options

    Dan Direct Invest funds will have expense ratios. Every fund charges you something. The key is to go low as is possible and then focus on a good asset allocation. Study the links Dan Otter just sent.
  27. 403b Questions/Options

    403bwise Discussion Board http://board.403bwise.com/topic/6120-security-benefit’s-neadirect-invest-vanguard-admiral-funds/ http://board.403bwise.com/topic/6400-security-benefits-nea-directinvest-vs-lincoln-investments-partic/ http://board.403bwise.com/topic/6803-choosing-a-403b-plan/?page=2&tab=comments#comment-37383 Bogleheads https://www.bogleheads.org/forum/viewtopic.php?t=180418
  28. 403b Questions/Options

    Dan You might do a search on this discussion board. This has been discussed in detail before. My feeling is (and others might not agree) is that Aspire and or NEA Direct both have good options and I would not sweat the annual fees or administrative fees too much but instead focus on getting the lowest fund expense ratio possible which would mean investing in index funds through Fidelity or Vanguard. I do know Aspire has a self direct option which allows you to choose a super low cost fund so what is not to like? What we encourage folks to do here is avoid loaded funds, high expense ratios, and surrender charges that are mostly part of insurance company products. And to not trust the advice of insurance peddling puedo advisors. I think either one is good to answer your question. Your focus should now be on saving as much as you possible can. Lets face it , few of us are able to escape some sort of administrative fee in a 403b platform. Its just part of the product DNA.
  29. 403b Questions/Options

    I am currently maxing out my 403b through Aspire. They only charge 15 basis points and $40 annually. I am invested in the low-cost Vanguard Total Stock Market Index. I think this is a fairly low-cost option since the expense ratio, to my knowledge, is under .5% and is, in fact, around .3%. What are your thoughts on Aspire vs. NEA Direct Invest through Security Benefit? To my knowledge, the Direct Invest program only charges $35 annually on accounts with balances under 50k and no annual fee with accounts on balances over 50k. I don't believe they charge an administrative fee or have an expense ratio, but I'm not positive. Should I switch? Or, stay with Aspire? I do not know much about Security Benefit. Thank you and I look forward to hearing back from you!
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