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Axa Vs. Fidelity


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#1 sullivanke

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Posted 06 March 2007 - 03:28 PM

Thank you for this website, for it seems it will have saved me ###### amount of anguish and loads of money over the long run. I am 28 years old and in my second year teaching. I fell into the sales pitch of an AXA rep last September as a new employee. I have contributed 5K in this time and have self-educated on my mistake. Our District I have learned offers 403b Through Fidelity who I am going to roll this into. My early termination fee is 274$ with an advisor fee of 17$. Im assuming there is no way to avoid this fee correct? Is it worth taking this hit and bringing it and all future contributions to Fidelity?
I cant think of the other providers off the top of my head but I think Fidelity was the best of them all. Met Life was another, When I get the list I will re-post....
but Fidelity seems just as good as Vanguard? TIAA_CREFF?

Last Question---Finishing my masters... Would like to Adjunct Teach or full time college at some point at local community college which has TIAA-CREFF. How would I maximize the "Compounding" effect (more money, more interest) with two seperate portfolios? (does anyone know if public school pension would be same as college pension [would I receive double pension])

THANKS IN ADVACNE>

#2 Vince

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Posted 06 March 2007 - 04:04 PM

What state do you live in?

#3 tony

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Posted 06 March 2007 - 05:58 PM

QUOTE(sullivanke @ Mar 6 2007, 03:28 PM) View Post

Thank you for this website, for it seems it will have saved me ###### amount of anguish and loads of money over the long run. I am 28 years old and in my second year teaching. I fell into the sales pitch of an AXA rep last September as a new employee. I have contributed 5K in this time and have self-educated on my mistake. Our District I have learned offers 403b Through Fidelity who I am going to roll this into. My early termination fee is 274$ with an advisor fee of 17$. Im assuming there is no way to avoid this fee correct? Is it worth taking this hit and bringing it and all future contributions to Fidelity?
I cant think of the other providers off the top of my head but I think Fidelity was the best of them all. Met Life was another, When I get the list I will re-post....
but Fidelity seems just as good as Vanguard? TIAA_CREFF?

Last Question---Finishing my masters... Would like to Adjunct Teach or full time college at some point at local community college which has TIAA-CREFF. How would I maximize the "Compounding" effect (more money, more interest) with two seperate portfolios? (does anyone know if public school pension would be same as college pension [would I receive double pension])

THANKS IN ADVACNE>



First Of all, stay away from any annuity product regardless of what company is selling them.Go strictly with mutual funds. Fidelity has some decent options and some very low cost index funds. Try to allocate your choices in Large Cap, Mid -Cap,Small Cap, International, and Bonds-both value and growth. Being rather young I would invest fairly aggressively depending on your risk tolerance. Looking back If I could do it all over again I would put my money in Index Funds . Trust me on this. But don't buy them from a salesman.
BUY THEM DIRECT. I have a colleaugue who brags about his indexing portfolio but he purchased them through an insurance agent who is charging him over 1% for them. I had to laugh.

I would most definetly take the termination fee and move your money over to Fidelity. In the scheme of things $274.00+$17.00 is a small amount to lose for your blunder. My blunder years ago was much more expensive for me and I had to pay thousands to transfer over. You learned from your mistake early which is good.

Use a 90-23 transfer form to get that money over to Fidelity THIS YEAR just in case we have a surprise IRS
ruling that will eliminate this provision.

I do not know how it is in your state but working at a community college or state college part time will not translate into credit toward retirement if that is what you are asking. In Virginia they are seperate entities
in credit toward retirement unless you leave one institution and start working for another state institution.

I guess if you work long enough at one public institution to qualify for retirement benefits and then move
on I guess you could technically receive two pensions. In Virginia I thing you have to work at least 20
years in the school system before you receive a minimum amount pension.


I don't think having two seperate 403B portfolios will make much difference unless one plan has much better choices than the other and if you chose to maintain two seperate plans. personally I would consolidate into the better plan.

I hope I have answered your questions . I was not sure what you were asking in your phrasing of things.

I am not an expert however so take what I say only in conjunction with what you read from other posters
and from reading this site.

Best Wishes

Tony

#4 jerseyteacher

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Posted 06 March 2007 - 11:26 PM

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.

#5 sullivanke

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Posted 07 March 2007 - 07:26 AM

I teach In NJ as well. Monmouth County, Middletown BOE.....
I called Fidelity and they looked up my district, they offer me the 403b, I also asked if it was fidelity advisor and they said no it is regular fidelity 403b, no-load, no fee, no commission mutual funds, unlimited trading...... I currently have a Roth IRA with them invested in a China growth fund and Freedom 2040.....
When i bring over my 403 from AXA, any recommendations for allocations?


THANKS AGAIN


QUOTE(jerseyteacher @ Mar 6 2007, 11:26 PM) View Post

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.



#6 tony

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Posted 07 March 2007 - 08:16 AM


"My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING".


That is an important statement. So many are struggling with understanding this. The confusion caused by this only helps the insurance company. Like I said in my post there are individuals paying way to much for index funds because they got them through an insurance broker and are paying ridiculous amounts for them.

One other issue. Please be aware that I have noticed that many young people are starting to aggressively invest in overseas non-diversified funds. I once invested in emerging markets fund and lost 65% of my money in one.

So be aware of the risk involved in your fund selections. Even though you are young a possible 65% meltdown would take years to recoup.

Tony





QUOTE(sullivanke @ Mar 7 2007, 07:26 AM) View Post

I teach In NJ as well. Monmouth County, Middletown BOE.....
I called Fidelity and they looked up my district, they offer me the 403b, I also asked if it was fidelity advisor and they said no it is regular fidelity 403b, no-load, no fee, no commission mutual funds, unlimited trading...... I currently have a Roth IRA with them invested in a China growth fund and Freedom 2040.....
When i bring over my 403 from AXA, any recommendations for allocations?


THANKS AGAIN


QUOTE(jerseyteacher @ Mar 6 2007, 11:26 PM) View Post

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.




#7 tony

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Posted 07 March 2007 - 08:16 AM


"My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING".


That is an important statement. So many are struggling with understanding this. The confusion caused by this only helps the insurance company. Like I said in my post there are individuals paying way to much for index funds because they got them through an insurance broker and are paying ridiculous amounts for them.

One other issue. Please be aware that I have noticed that many young people are starting to aggressively invest in overseas non-diversified funds. I once invested in emerging markets fund and lost 65% of my money in one.

So be aware of the risk involved in your fund selections. Even though you are young a possible 65% meltdown would take years to recoup.

Tony





QUOTE(sullivanke @ Mar 7 2007, 07:26 AM) View Post

I teach In NJ as well. Monmouth County, Middletown BOE.....
I called Fidelity and they looked up my district, they offer me the 403b, I also asked if it was fidelity advisor and they said no it is regular fidelity 403b, no-load, no fee, no commission mutual funds, unlimited trading...... I currently have a Roth IRA with them invested in a China growth fund and Freedom 2040.....
When i bring over my 403 from AXA, any recommendations for allocations?


THANKS AGAIN


QUOTE(jerseyteacher @ Mar 6 2007, 11:26 PM) View Post

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.




#8 sullivanke

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Posted 07 March 2007 - 01:23 PM

The Tax shelter Annuit List is as Follows:
AIM Van Kempen Pioneer Group Frankling Templeton Fund
Equitable Life
Fidelity Investements
Lincoln National Life
Metropolitan Life
Prudential insurance Company
Thomas Seely Agency
The Variable Annuity Life Ins. Co.


Im switching from AXA Equitable (Nothing equitable about that company) to Fidelity but need some advice in where to put this money (funds)


QUOTE(tony @ Mar 7 2007, 08:16 AM) View Post

"My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING".


That is an important statement. So many are struggling with understanding this. The confusion caused by this only helps the insurance company. Like I said in my post there are individuals paying way to much for index funds because they got them through an insurance broker and are paying ridiculous amounts for them.

One other issue. Please be aware that I have noticed that many young people are starting to aggressively invest in overseas non-diversified funds. I once invested in emerging markets fund and lost 65% of my money in one.

So be aware of the risk involved in your fund selections. Even though you are young a possible 65% meltdown would take years to recoup.

Tony





QUOTE(sullivanke @ Mar 7 2007, 07:26 AM) View Post

I teach In NJ as well. Monmouth County, Middletown BOE.....
I called Fidelity and they looked up my district, they offer me the 403b, I also asked if it was fidelity advisor and they said no it is regular fidelity 403b, no-load, no fee, no commission mutual funds, unlimited trading...... I currently have a Roth IRA with them invested in a China growth fund and Freedom 2040.....
When i bring over my 403 from AXA, any recommendations for allocations?


THANKS AGAIN


QUOTE(jerseyteacher @ Mar 6 2007, 11:26 PM) View Post

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.





#9 tony

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Posted 07 March 2007 - 01:39 PM


Sullivanke,

Again, you listed Fidelity Investments under your "annuity" list. Find out if this is an annuity or not.

You have no good choices if all are insurance products. Stay away from any annuity because you will just end up paying way more than you need to and this will eat up your returns over time.

I will be glad to help you pinpoint good fidelity choices once you do some homework. Also find out how many funds you can invest in under fidelity and whay your choices are. ASk for a list of expenses as well.

Tony

QUOTE(sullivanke @ Mar 7 2007, 01:23 PM) View Post

The Tax shelter Annuit List is as Follows:
AIM Van Kempen Pioneer Group Frankling Templeton Fund
Equitable Life
Fidelity Investements
Lincoln National Life
Metropolitan Life
Prudential insurance Company
Thomas Seely Agency
The Variable Annuity Life Ins. Co.


Im switching from AXA Equitable (Nothing equitable about that company) to Fidelity but need some advice in where to put this money (funds)


QUOTE(tony @ Mar 7 2007, 08:16 AM) View Post

"My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING".


That is an important statement. So many are struggling with understanding this. The confusion caused by this only helps the insurance company. Like I said in my post there are individuals paying way to much for index funds because they got them through an insurance broker and are paying ridiculous amounts for them.

One other issue. Please be aware that I have noticed that many young people are starting to aggressively invest in overseas non-diversified funds. I once invested in emerging markets fund and lost 65% of my money in one.

So be aware of the risk involved in your fund selections. Even though you are young a possible 65% meltdown would take years to recoup.

Tony





QUOTE(sullivanke @ Mar 7 2007, 07:26 AM) View Post

I teach In NJ as well. Monmouth County, Middletown BOE.....
I called Fidelity and they looked up my district, they offer me the 403b, I also asked if it was fidelity advisor and they said no it is regular fidelity 403b, no-load, no fee, no commission mutual funds, unlimited trading...... I currently have a Roth IRA with them invested in a China growth fund and Freedom 2040.....
When i bring over my 403 from AXA, any recommendations for allocations?


THANKS AGAIN


QUOTE(jerseyteacher @ Mar 6 2007, 11:26 PM) View Post

Sullivanke,

1. Be careful about the information you got on Fidelity. Make sure that Fidelity is an actual 403b vendor in your district and not just available. What I mean by that is MetLife, for example, may sell Fidelity products- this would not be ideal. You want to go directly through Fidelity. My district once tried to tell me that Fidelity was a vendor, but through Lincoln Financial- NOT THE SAME THING.

2. A 10% return on two accounts worth $50,000 is the same thing as a 10% return on $100,000.

3. Although I hate giving these Insurance Companies any more money than necessary, in your case cutting and running may be a good option. With only $5000 in, paying the transfer fee will be made up for over time with your new, lower fee account. The more money in the account in my opinion, the more it makes sense just to execute small, penalty-free transfers.

4. Congrats on "seeing the light". Now the hard part...convince the rest of your colleagues that fee-laden 403b plans stink and you deserve better choices for your retirement. Your going need to some help on that one.