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Teachers In My District At Leaving Axa For Metlife


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#16 tony

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Posted 14 June 2017 - 12:46 PM

jeb

 

Its a good first choice. It covers the basics all teachers should know about investing and finances.  It talks to teachers directly. Talks about the pitfalls of annuities and benefits of index funds. Other topics too. Its been updated . I have read  only the first, older edition so can't comment on the newer edition. For the cost of the book you have nothing to lose and everything to gain by reading it. You might also order his financial literacy-simplified. I also purchased that. Both were very helpful to me. I would buy both. They are quick reads.You can buy them on line directly from this site. Steve Schullo's book Late Bloomer Millionaires is also a good choice. What makes these books good choices is that they are written by teachers . Steve's book expands past just speaking to  just teachers.  Steve was an educator as was /is Dan Otter.

 

After reading those there are a multitude of many other books on Amazon like The Wealthy Barber or The Millionaire Next Door , which can continue to build your financial confidence.  Just don't do Dave Ramsey or Suzie Orman as they sometimes give questionable advice and try to get you hooked into expensive products you don't need.



#17 jebjebitz

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Posted 14 June 2017 - 09:15 PM

Thanks For the info Tony. I was unable to buy the book on this site so I'll look for it on Amazon.
Ramsey's name came up a lot when I was looking into budgeting. I had heard that his advice is great but like you said his suggestions for investments were questionable

#18 jebjebitz

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Posted 21 June 2017 - 07:00 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.


Ok. I got a chance to call the Metlife rep from my district today. I didn't ask about the 6% guarantee product that my co-workers told me they had signed up for, I just asked if he could recommend investment options. After telling me the differences between annuities and mutual funds he introduced the 6% product. Turns out the "6 % guarantee" is a GMIB (guaranteed minimum income benefit) annuity with a rider. His sales pitch started by asking if I was working and contributing to a 403b during the 2008 crash. Then talked about how teachers who were prepared to retire at this time either took the loss or had to keep working to make their money back. That risk, and future risks, would be lessened/avoided if teachers invest in this product. It would guarantee a monthly income after retirement which he likened to a second pension. Then he went into actual value of the account versus market value and the effect this would have on monthly payments. It was also revealed that the 6% is not a 6% return on your contributions. I'll admit I lost him here but I believe that monthly payment you receive is based on 6% of the greater of either the market value or actual value? It sounded confusing and, at one point he actually admitted that it's really difficult to explain over the phone. He had a graphic that could clear the whole thing up if he could sit down with me in person. I read a boglehead post about it here:
https://www.boglehea...pic.php?t=88740

#19 tony

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Posted 21 June 2017 - 08:25 PM

Jeb

 

 It sounded confusing and, at one point he actually admitted that it's really difficult to explain over the phone

 

 

 

 

It sounds like a complicated mess to me. I read the Boglehead link and it was confusing. What else do you need to know?  If a fifth grader can't understand it then its not worth investing in.  Investing should be easy to understand if it isn't, run like hell !!Your buddies who left AXA for this Met life product probably have no clue what they invested in. Jeb I am glad you didn't fall for this. Thank-you for your continued posts and keep posting. You are asking good questions and sharing good information .By doing so you are not only helping yourself but others as well.