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  2. SophV

    Switching vendors; need help!

    When I insert these codes (below), my district do not have them listed. Are any of the ones I listed similar to your list? Fidelity Total Market Index Fund (FSTVX) = 0.015% Fidelity Global ex US Index Fund (FSGDX) = 0.06% Fidelity U.S. Bond Index Fund (FSITX) = 0.025%
  3. SophV

    Switching vendors; need help!

    Thank you for replying. As long as I stay around the above ranges I listed and you, I should be in a better path?
  4. EdLaFave

    Switching vendors; need help!

    These are the funds you listed, but none of them have 0% expense ratios: The only funds I'm aware of with 0% expense ratios aren't available in the 403b/457b, at least not yet: Of the funds you listed there is quite a bit of overlap: All 3 of your large cap domestic funds contain quite a bit of Large Blend companies. It seems you want to own the entire domestic market since you're covering large, mid, and small. You don't need 5 funds to do that because Fidelity Total Market Index Fund (FSTVX) has you covered on all fronts with a 0.015% expense ratio...which you'll note is cheaper or equal to every domestic fund you listed! The international index fund you selected doesn't cover emerging markets, which is why, I presume, you've added an emerging markets fund. There is no reason to hassle with two funds when Fidelity Global ex US Index Fund (FSGDX) has both developed and emerging markets for a 0.06% expense ratio. I won't preach too much about the bond funds, but I do like Fidelity U.S. Bond Index Fund (FSITX) better because it is 0.01% cheaper and takes a tiny bit more risk, while still being invested in high quality bonds, which presumably is why it has outperformed. You'll be fine either way. I don't have much to say about the REIT fund you picked except to say, I wonder if the Fidelity Total Market Index Fund (FSTVX) I mentioned also includes real estate. In my view, unless you're wanting to make bets on certain sectors of the economy, you can't do better than this in a Fidelity 403b/457b (which isn't to say you can't do just as well...or if you're lucky, even better...with other options): Fidelity Total Market Index Fund (FSTVX) = 0.015% Fidelity Global ex US Index Fund (FSGDX) = 0.06% Fidelity U.S. Bond Index Fund (FSITX) = 0.025%
  5. SophV

    Switching vendors; need help!

    Here are the Fidelity mutual fund codes I am planning to select;FLCHX, FIBAX, FSUPX, FSRVX, FSSVX, FPMAX, FUSEX, FSCKX, AND FSIVX. Please share your thoughts if they are good to create my 457 B plan!!
  6. Yesterday
  7. EdLaFave

    403-b

    I think this portfolio has excellent diversification, really low expenses, and an appropriate level of risk for your personal taste. If you make changes, make them because your circumstances have changed or your investing philosophy has changed (this probably shouldn’t happen). You’ll maximize your profits by not changing over time. Whatever you do, don’t make changes because of market performance, specifically: 1. Emerging markets begins to do well and you decide you want exposure. 2. Small cap lags and you want to minimize your bet on small. 3. Either stocks or bonds are doing better and you switch more heavily to the other.
  8. SJP-3

    403-b

    I'm loving the feedback and can see the value in all sides. I've heard your suggestions and here's what I'm going to run by the Vanguard folks before the roll over: US Bond Fund Intermediate Term (VBILX) 45% US Stock Fund Total Stock Mark (VTSAX) 30% Small Cap Value (VSIAX) 15% International Stock Fund FTSE All World (VFWAX) 10% I agree with simplicity and fees matter too. This can probably be improve upon down the road but it beats the heck out of the 47 funds I have now. I feel much better with this array and I'm sure it will change over time but this is a good starting point. Thanks so much for your contributions. I'll post the fees TIAA is charging after September 7th, so others can see games they play.
  9. EdLaFave

    Switching vendors; need help!

    You won't be choosing stocks; you'll be choosing mutual funds. If you go with Fidelity, I documented the plan and the funds I'd invest with here. I wouldn't say anything above 0 is a bad deal. I'd say anything above the ranges I listed above are a bad deal:
  10. SophV

    Switching vendors; need help!

    Hi Ed, If I go with Fidelity, I choose the stocks myself. Their 403b and 457 b plans are self-directed. I see some index fees close to 0.0. There were also many index that ranged from 0.4 to 1.0. Is a bad deal anything above 0?
  11. EdLaFave

    Switching vendors; need help!

    There are just a multitude of fees: Assets Under Management fee = every year you pay the vendor a percentage of your account balance just to have the account Expense Ratio = every year you pay the mutual fund a percentage of the amount you have invested in the fund Surrender Fees = you pay the vendor a percentage of your account balance just to leave Sales Loads = Either when you buy or sell a mutual fund you pay a percentage of the sale to the mutual fund company Account Maintenance = every year you pay the vendor a flat fee ...and on and on the list goes, but these are the main fees to be concerned with. I've seen it reported that Fidelity charges $40/year to have an account, but when I called them a week or two ago they said it was reduced to $20. With Fidelity (and everybody else), you also pay the expense ratio on the funds you purchase. TIAA may have misspoken, but I don't know what arrangement they worked out with your district. Here in OCPS (FL) they charge a 0.58% Assets Under Management Fee plus whatever the expense ratios are for the funds you invest in. Expense Ratio Ranges Fidelity just released a total international stock fund and a total domestic stock fund that charges 0% for the expense ratio. Beyond this recent development these are reasonable ranges for funds: Total Domestic Stock = 0.015% - 0.04% Total International Stock = 0.06% - 0.11% Total Bond Fund = 0.025% - 0.05% Target Date Fund = 0.13% - 0.15% Fixed Allocation Fund = 0.11% - 0.14% Anything higher than those ranges and you're getting a "bad" deal.
  12. SophV

    Switching vendors; need help!

    Hi Ed, I do not know much about Index fees. When I called fidelity, they charged 40 annual and said I was charged a low index fees. Again, I am not a financial expert. How do I know if the fidelity plan index fees are expensive? When I called TIAA, they mentioned they do not charged any fees.
  13. Axa Equitable is looking to grow its retirement adviser arm and focus on growth opportunities in the 403(b) space as it reported outflows from its investment management and individual retirement arms. Announcing its Q2 results, the recently floated US operations of the French insurance giant blamed net outflows of $7.7billion.
  14. tony

    403-b

    But you can not go by fees alone unless everything is absolutely equal-fees, allocation, and performance of the underlying funds( LSF have an international bond component) and there are probably other factors like how often a 3 fund portfolio holder rebalances or if allows his portfolio to drift. So it simply can't always come down to just fees. Other variables could change the simple equation. Its never an exact science or so it appears to me. You just want to get as close as possible to doing all the right things that might increase your chances of a good return.Actually I would prefer a 3 fund index portfolio over what SPG-3 picked out for himself but whose to say his portfolio wouldn't outperform our recommendation?
  15. EdLaFave

    403-b

    I hate qualitative statements and I just wanted to quantify "a little more." If you build a 3 fund portfolio with Vanguard it'll cost roughly 0.058% per year. Assuming 6% returns and 3% inflation, over 30 years that fee consumes 2.55% of real returns. If you buy a LifeStrategy fund (which contains the same funds I just mentioned) it costs between 0.11% - 0.14% per year. Making the same assumptions, over 30 years that fee consumes between 4.82% – 6.54% of real returns. It is a personal decision as to whether or not giving up a few percent of real returns is worth the convenience of having Vanguard keep your asset allocation in line for you.
  16. tony

    403-b

    I would also consider asking Vanguard for their recommendations.
  17. tony

    403-b

    Well since you asked here is my two cents, probably more like a dollar's worth:) You are coming from a 47 fund portfolio and I think at this point you probably want simplicity above all else. I own a life strategy fund and I think that is the one you should chose. All I own now is the Life Strategy Conservative Growth Fund (which pretty much covers the whole market) I went one further and I also own a hefty amount in Vanguard Small Cap index for an extra performance boost since small caps do outperform and are currently they are doing just that..but that was a personal decision and not necessary. I would put the performance of my arrangement against any other portfolio out there. Thats right. I own two total funds and that is it. However, the Life strategy Funds are made up of Total Stock Market Index, Total International Stock Index, Total Bond Market Index, and Total International Bond Index so its a "fund of funds". Don't be fooled by thinking more cool sounding funds makes your portfolio better. It doesn't. Life Strategy covers pretty much every asset class you need. Just pick the strategy fund you like from very conservative to very aggressive : Since you are retired you will want a fairly conservative arrangement I would think, nothing too aggressive but more of a steady as she goes arrangement. What makes Life Strategy a good choice is that the allocation never changes . Its internally managed you so you don't need to rebalance. Keep in mind the Life Strategy Fund is pretty much contains the same holdings you came up with in your choices. The extra you get is it will be internally managed for you. Of course you must be aware more stocks means higher return so make sure you realize the more conservative strategy funds will not have as a high a return but are safer in an economic downturn. Here is the direct link https://investor.vanguard.com/mutual-funds/lifestrategy/#/
  18. EdLaFave

    403-b

    You may want to layout why you made those selections because it may influence my response, but here goes... Bonds I think you’ll be fine with just the intermediate bond fund. The other fund won’t hurt, but it isn’t really going to help. Some folks prefer the total bond fund (VBTLX), but intermediate is great and has slightly higher returns/risk. You could consider adding an international bond fund, but again I believe this is unnecessary. Domestic Stock I see what you’re doing in selecting a large, mid, and small cap fund. It is smart and makes total sense. However, if you buy the total market fund (VTSAX), it has small mid and large for you. So going that route is less complex! Some folks like to hold the three funds you picked (and others) because they want to invest disproportionately in one in the hopes it’ll outperform. International Stock That is a great fund; I actually own it. However, it doesn’t invest in emerging markets. If you want that exposure then the total international fund (VTIAX) is the way to go. All In One Just wanted to reiterate that a target date or LifeStrategy (fixed allocation) fund may be ideal too. It just costs a little more. I wouldn't pick it for me but it is best for many/most.
  19. Last week
  20. SJP-3

    403-b

    This would represent my total portfolio.
  21. SJP-3

    403-b

    Hey Folks, I've been looking at some funds to roll into and thought I'd share. I'm looking a 6 ( much better than 47). I well come any comments or insights. Bond Fund: Long-Treasury (VLGSX) Intermediate (VBILX) US Stock Funds: Large Cap Index (VLCAX) Mid Cap Growth (VMGMX) SMALL CP Value (VSIAX) GLOBEL: FTSE All world ex US (VFWAX)
  22. EdLaFave

    Retirement's Sometimes Dismal Reality

    Something I've always wondered about: how much poverty and income inequality can you inflict on a nation before they refuse to accept it? If I answered this question in a vacuum I certainly would have underestimated the answer. I don't think we're necessarily there yet. I think a diverse nation who has woven personal and institutional bigotry into their DNA is more likely to accept awful conditions (relative to a more homogeneous nation). So I think we're more willing to accept this, but it is starting to feel like the limit may be within sight. Wow. However, it does seem odd that we're comparing February 2013 - November 2016 to 1991. Anytime I see something like this (especially with respect to money), I wonder if the data is being cherry picked.
  23. Not exactly related to 403b but certainly applicable to the topic of retirement and planning ahead for your future which sometimes can be uncertain. You will recognize the author who has written about 403b plans previously. For a rapidly growing share of older Americans, traditional ideas about life in retirement are being upended by a dismal reality: bankruptcy.The signs of potential trouble — vanishing pensions, soaring medical expenses, inadequate savings — have been building for years. https://www.nytimes.com/2018/08/05/business/bankruptcy-older-americans.html?fallback=0&recId=18yUD9jEBtHS5djSsmeI08gbhgA&geoContinent=NA&geoRegion=CA&recAlloc=thompson_sampling_story&geoCountry=US&blockId=signature-journalism-vi&imp_id=785613265
  24. tony

    Switching vendors; need help!

    Jebjeblitz Glad you like it. Hope you will continue participating on this board. We need you to offer your insights. Tony
  25. jebjebitz

    Switching vendors; need help!

    That is cool! Looks like Maryland has a state tax break. This link shows you a comparison of expense ratios and provides a calculator if you want to see what you’d save with the tax break
  26. tony

    403-b

    As a side note this story broke today. Ameriprise (formally American Express Financial Advisors) and the first outfit I ever invested in my 403b is once again in the news. If you think for a moment these folks care about you should have your head examined. I don't think what these fellows below did is that uncommon. My Ameriprise advisor at the time played havoc on my portfolio. I really believe the mentality in the financial industry is that they have a license to steel. Luckily we call them out here and we know who the good guys are. Agency censures firm for not protecting clients from thieving brokers Aug 15, 2018 @ 11:51 am By InvestmentNews 0Shares The Securities and Exchange Commission said that Ameriprise FinancialServices will pay $4.5 million to settle charges that it failed to safeguard retail investor assets from theft by its representatives. According to the SEC's order, five Ameriprise reps committed several fraudulent acts, including forging client documents, and stole more than $1 million in retail client funds over a four-year period. The SEC found that Ameriprise, which also agreed to a censure, failed to adopt and implement policies and procedures "reasonably designed to safeguard investor assets against misappropriation by its representatives." The SEC said that the five brokers were based in Minnesota, Ohio, and Virginia, and three previously pled guilty to criminal charges. Each was terminated by Ameriprise for misappropriating client funds. The SEC's order found that Ameriprise has implemented a new system to safeguard clients' money, and that Ameriprise reimbursed all clients for the losses they incurred due to the misconduct of its reps. Ameriprise agreed to the censure and penalty payment without admitting or denying the findings. 0 COMMENTS What do you think? View comments
  27. SJP-3

    403-b

    And I got a chance to see Steve on youtube!!!
  28. SJP-3

    403-b

    Yeah, thanks all. I'll be talking with Vanguard before I pull the trigger to make sure things are right. I'm looking at constructing the portfolio now and will have a clear idea before I make the move. I don't want to come this far and miss up. This has been really good. I've pass the site info to another group of folks in our age group with a heads up about TIAA.
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