Jump to content


Photo

Teachers In My District At Leaving Axa For Metlife


  • Please log in to reply
18 replies to this topic

#1 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 11 June 2017 - 11:55 AM

Some of the teachers I've spoken to about my decision to leave AXA have told me they transferred their investments to MetLife. Apparently the rep that comes to our building is offering a 6% guaranteed return. Is this a red flag? This sounds too good to be true

#2 shirley

shirley
  • Members
  • 125 posts

Posted 11 June 2017 - 12:11 PM

J,

 

Met Life is an insurance company......get out the magnifying glass and microscope and read the prospectus!!!!!  Bob



#3 EdLaFave

EdLaFave
  • Members
  • 85 posts
  • Gender:Male
  • Location:Orlando, Fl

Posted 11 June 2017 - 01:31 PM

My instincts say there is no chance of a guaranteed six percent return. Maybe they guarantee 6% returns and hit you with 4.5% fees. Maybe the 6% return is somehow limited to your first contribution or to the first month a contribution is made.

There has to be a catch because it is literally too good to be true.
Navigate and reform OCPS' 403b and 457b.

#4 tony

tony
  • Members
  • 3,489 posts

Posted 11 June 2017 - 04:08 PM

Thats a foolish error. It shows lack of financial knowledge. I made the same mistake when I left American express, paid the surrendar fee and went to Lincoln Insurance Company and started all over with high fees and new surrender fees.  The new advisor fooled me by mentioning Fidelity, Janus, and some other big name funds. So I changed. I was the poster child for stupid.  A guaranteed 6%sounds fishy. Krow, time to do what you  are good at and expose what these folks are really getting.

 

 

Tony



#5 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 11 June 2017 - 04:44 PM

It's tricky because I'm reluctant to tell these teachers to take a closer look at what they've signed up for. They felt confident that they had found a way out of AXA and into something legitimate. On the other hand, they're all good people and colleagues that deserve to know if they're being screwed

#6 EdLaFave

EdLaFave
  • Members
  • 85 posts
  • Gender:Male
  • Location:Orlando, Fl

Posted 11 June 2017 - 05:20 PM

You've got to do what you're comfortable with but if it were me...

  1. I'd quickly get all of the details on the plan so I know EXACTLY what I'm talking about.
  2. I'd tell everybody about how and why it is bad...ASAP.
  3. I'd also tell them about the best plan(s) and how and why it is great.
  4. I'd talk with my wife beforehand so I do this in the most tactful way possible rather than an overly blunt/harsh style that sometimes comes too naturally to me.

I'm curious to know if they simply walked away with the idea that "AXA is bad" or if they walked away with the idea that these vendors are deceitful sharks that charge us super high fees and can't be trusted. I'm guessing it was the former.

 

I often find myself saying, "let me use AXA as an example, but don't think they're any worse than the rest of them."


Navigate and reform OCPS' 403b and 457b.

#7 tony

tony
  • Members
  • 3,489 posts

Posted 11 June 2017 - 05:27 PM

"

let me use AXA as an example, but don't think they're any worse than the rest of them."

 

 

 
that sums it up..


#8 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 12 June 2017 - 11:17 AM

You've got to do what you're comfortable with but if it were me...

  • I'd quickly get all of the details on the plan so I know EXACTLY what I'm talking about.
  • I'd tell everybody about how and why it is bad...ASAP.
  • I'd also tell them about the best plan(s) and how and why it is great.
  • I'd talk with my wife beforehand so I do this in the most tactful way possible rather than an overly blunt/harsh style that sometimes comes too naturally to me.
I'm curious to know if they simply walked away with the idea that "AXA is bad" or if they walked away with the idea that these vendors are deceitful sharks that charge us super high fees and can't be trusted. I'm guessing it was the former.
 
I often find myself saying, "let me use AXA as an example, but don't think they're any worse than the rest of them."

I'd like to follow these steps but I'm not entirely confident in my ability to give people advice on their 403b's. For example, when looking at one of our available providers products on 403b compare, Valic, it looks pretty decent. Their fees and expense ratios appear low in comparison to other options like Metlife and AXA but I'm sure someone more knowledgeable would be capable of pointing out why they're not a good option.

#9 EdLaFave

EdLaFave
  • Members
  • 85 posts
  • Gender:Male
  • Location:Orlando, Fl

Posted 12 June 2017 - 11:58 AM

I tried to get information from Valic but they literally told me they aren't able to provide any information for the OCPS plan. It ended awkwardly with me telling them to call me back if they decide they want to tell me about their plan(s). I found this to be shocking, they obviously worked to be a vendor but they wouldn't tell a potential customer about their products. How does this make any business sense?

 

On 403bcompare it looks like there are 7+ plans for Valic. I've found that here in OCPS, vendors often only offer a limited set of the plans they offer nationally.

 

What vendors are available in your district?


Navigate and reform OCPS' 403b and 457b.

#10 krow36

krow36
  • Members
  • 296 posts

Posted 12 June 2017 - 12:25 PM

Is this what they have? Found it in 403bcompare.
MetLife
T-FLEX Fixed Annuity 403b
minimum rate 3.5%
https://www.qualifie...ex Brochure.pdf

I'm traveling by sailboat, only have limited cell phone internet, headed to BC. Be back in Sep.

#11 krow36

krow36
  • Members
  • 296 posts

Posted 12 June 2017 - 12:49 PM

Each of the latest 5 "contract years" has a 7% surrender fee. A MetLife fixed annuity is better choice than their variable annuity. And better than anything from AXA?

#12 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 12 June 2017 - 05:25 PM

I tried to get information from Valic but they literally told me they aren't able to provide any information for the OCPS plan. It ended awkwardly with me telling them to call me back if they decide they want to tell me about their plan(s). I found this to be shocking, they obviously worked to be a vendor but they wouldn't tell a potential customer about their products. How does this make any business sense?
 
On 403bcompare it looks like there are 7+ plans for Valic. I've found that here in OCPS, vendors often only offer a limited set of the plans they offer nationally.
 
What vendors are available in your district?


My district offers the following vendors:
MetLife
Valic
AXA
Lincoln Investments
Primerica
First Investors
Genworth?(I think this company uses Oppenheimer funds)
Fortress Financial(this is a local guy that has been around. I don't know what he sells people)

#13 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 12 June 2017 - 05:29 PM

Each of the latest 5 "contract years" has a 7% surrender fee. A MetLife fixed annuity is better choice than their variable annuity. And better than anything from AXA?


I was thinking they were enrolled in that T-flex product too. There's a part of me that kind of wants to call each rep to see what they would offer.
AXA has recently lowered their expense ratios on the funds in the Equivest contract. When I left in April they were 2% for most. Now they're 1% or below.

#14 tony

tony
  • Members
  • 3,489 posts

Posted 13 June 2017 - 09:13 AM

It's tricky because I'm reluctant to tell these teachers to take a closer look at what they've signed up for. They felt confident that they had found a way out of AXA and into something legitimate. On the other hand, they're all good people and colleagues that deserve to know if they're being screwed

 

 

I think it time to rent an airplane and drop copies of Dan's easy to read and understand Teach and Retire Rich over every school system. Perhaps they will get read or maybe a few will hit an  insurance annuity pedaler or two on the head and knock them out before they can do any more damage.

 

Seriously, even though your comrades are still making mistakes, you are planting the seeds of change that will eventually pay off as folks get more financially savvy.



#15 jebjebitz

jebjebitz
  • Members
  • 30 posts

Posted 14 June 2017 - 10:13 AM

 

It's tricky because I'm reluctant to tell these teachers to take a closer look at what they've signed up for. They felt confident that they had found a way out of AXA and into something legitimate. On the other hand, they're all good people and colleagues that deserve to know if they're being screwed

 

 

I think it time to rent an airplane and drop copies of Dan's easy to read and understand Teach and Retire Rich over every school system. Perhaps they will get read or maybe a few will hit an  insurance annuity pedaler or two on the head and knock them out before they can do any more damage.

 

 

Does the book deal primarily with investment options?  Or, does it also discuss personal finance tips like budgeting?  After skimming through the boglehead Wiki pages I'm looking to start to take control of my finances, debt etc.