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Everything posted by tony

  1. This is a long report. I realize it won't be of great interest to some of you perhaps many of you. But the more I read, the more interesting the material was on global retirement trends. It covers so many areas that impact retirement that it kept my interest. https://www.im.natixis.com/us/resources/2018-global-retirement-index-report
  2. Patrick Patrick please don't borrow from your retirement funds, its a bad idea. Also have you approached your district for reimbursement of your class expenses ? I know our school system did for folks taking graduate and doctoral classes. That might fill the money gap somewhat. They might do that. This might be useful concerning borrowing from an IRA: https://www.investopedia.com/ask/answers/082515/can-i-use-my-ira-pay-my-college-loans.asp
  3. Patrick, this will be my last comment because too much information can get confusing especially when it comes from different people giving slightly different takes on your situation. If you make contact with the individual I mentioned ( you can call and ask for her ) it will make the process much easier. She is a retirement specialist and she was very good at making things happen for me when we needed help. I thought she was better than the average rep. If you can't reach her then you may get someone else. Based on my experience I would avoid trying to do this alone online. It can be confusing if you are not sure what you are doing. I want to reiterate that the 403b is a lousy retirement vehicle for many reasons.T he only advantages that I see is the employer monthly auto deduction makes it easier to save. Otherwise, it stinks for most educators. You would be better off getting all your old accounts into a Vanguard IRA. Then I would do a Roth IRA with all new money and after that, I would do your employer's 403b with Security Benefit. That's what I would do in your shoes. The allocations you choose is up to you and several examples exist in Ed's comments and the articles posted. I've been dealing with this stuff for thirty years plus and I have all the battle wounds associated with making mistakes dealing with 403b products. You never hear anyone moan and groan about IRA's. Good Luck. Let us know how you proceed
  4. Patrick I looked closer at your post. It looks like you are not in any annuity-insurance products so you should be able to transfer all that money into a traditional IRA . I am assuming all your accounts are tax-advantaged accounts. Also thats a significant amount of money so you would not want to transfer any of it into a Roth because you will incur huge tax penalties. I want to reiterate YOU DO NOT HAVE TO MOVE THIS OLD MONEY INTO YOUR NEW EMPLOYER 403b!!! SO WHY WOULD YOU?? 403b's are inferior in options to an IRA.
  5. This might be a good article to read as well. Keep your questions coming and we'll answer them. I believe everything I told you is correct . Be careful seeking advice from financial advisors. Some are commissioned salespeople so their advice is biased in their favor.
  6. Since you are no longer with those past employers, you can roll it over to a Traditional IRA with Vanguard. You will then be free to choose any fund you wish with no 403b like restrictions and lower fees. I have done this myself. Its a smart move.Call Nicole and she will do much of the heavy lifting for you. I would not roll the old money into a new 403b with your current employer. IMHO that would be a mistake. Now for new money going forward, you can either go the 403b with your new employer if you chose the three best options mentioned or if you are not planning to invest big bucks you may just do a Roth IRA and stay away from the 403b altogether. You can put $5,500 a year in a Roth account and this money will be tax free on retirement. This might help https://www.goodfinancialcents.com/how-rollover-403b-into-traditional-ira-tax-sheltered-annuity/
  7. <nicole_jackson@vcs.vanguard.com> If you can get hold of this person at Vanguard she will make the process easy for you. Trust me. See if you can deal with this person.
  8. Yes I would not roll it over to a Roth unless it's already a Roth account. You will be penalized by IRS. Move tax-deferred money into a traditional IRA. Much depends on how much money we are talking about. If it is not much and you need the money then maybe you can take the tax hit on one of the accounts and transfer the rest to a Traditional account. I believe its a 10% penalty for early withdrawal before retirement plus it will be taxed as income. Its a bad situation.If I were you i would most likely try to avoid any taxable events. Perhaps you can pay for your education as you go since you are employed. Transferring these accounts can be a headache. You will need paperwork from both sides filled out but call Vanguard first if you go the IRA route which I recommend. They will get it all going for you and will speed up the process.
  9. tony

    403(b) help!

    I just hope Shannon returns because Michael will most likely get it right for him.
  10. tony

    A Crazy Simple Portfolio

  11. tony

    A Crazy Simple Portfolio

    Who says allocating or choosing a mutual fund is complex? For those of you who have succeeded tapping into the right provider, its simple. Read this!! And don't let advisors try and convince you otherwise. If you have been following us here this will look somewhat familiar. This guy IMHO is very good at simplifying information for easy digesting with no heartburn. https://mymoneywizard.com/3-fund-portfolio/?mc_cid=fca7857e2b&mc_eid=b2c3850940
  12. tony

    403(b) help!

    I haven't
  13. tony

    403(b) help!

    Shannon Yes you should definetly contact Michael. Have you done so? He can do this. This is a complicated situation and we best not give advice we are not sure of. Michael ???
  14. tony

    Why Insurance Companies will not do Self-directed 403bs

    Are you suprised by this stance? How would they maintain a sales force with a push to self-directed accounts?
  15. Things have been going well for too long. Don't get me wrong its a good thing and we all have benefited in one way or another (Investments, steady employment etc). But, I worry about new investors who may have never lived through a downturn before and who have started to accumulate a decent nest egg the last ten years. How will they react when the next downturn happens? I think we may be closer to a downturn than many might think. Vanguard thinks it will be sometime in 2020. No one really knows . It took me two downturns to realize 100% stocks was too risky. I hope others won't be so stubborn.
  16. tony

    403(b) help!

    Holy smokes, I'm staying out of this one. My head is spinning. I will let Krow , Ed, and others get the headache. Shannon, I am trying to follow your two threads and I'm kind of lost from all the details. After you get everything straightened out I would strongly suggest you try keep things as simple as possible by having all your investments situated in the same target fund if at all possible regardless if you invest in a Roth, 403b, traditional IRA or 457. Hopefully you will be able to consolate or transfer all your accounts.
  17. tony

    403(b) help!

    Krow she does have security benefit-direct invest? or am i confused
  18. tony

    Seeking Financial Input 403 (b)/457/Roth

    Shannon Congratulations for doing the right thing for yourself by picking one of the good guys.... Vanguard. Also I am impressed that you are putting a good amount away each month and year. That should bring you financial success if you keep it up!!. The Three Funds that we recommend the most are (Fidelity Or Vanguard) Total Stock Market Index Total International Stock Index Total Bond Market Index Now a target fund would be a good choice because its made up of these funds. Simply pick the date of your planned retirement or close to it and invest in it and forget it. If you are the type of person who prefers the hands off approach, YOU CAN NOT BEAT A TARGET FUND!! You can chose the same target fund you have in your 403b in your Roth IRA as well and you will be set. Heres a link https://investor.vanguard.com/mutual-funds/target-retirement/#/ If you are still working I am not sure you can roll your 457b money over to a 403b . Most likely though you can roll over your $30,000 over to a better choice on your 457b list. Also you cannot roll your money over to a Roth Ira from a 457b unless you are seperated from service/job. Even then you would have to pay taxes on the transfer because your 457b account is tax-deferred and your Roth account would not be. Best to keep things simple. If no better choice is available in your 457b just leave the money where it is until you resign or retire from your current job although you could move the 457b money to Security Benefit Direct Invest( which I believe has some vanguard funds available) most likely at any time. I hope I made myself clear. Its easy to make things confusing when dealing with this stuff. I think I gave you accurate info. If I didn't you and me both will hear from others.
  19. Even knowing how good early retirement can feel in the end, others feel the jitters while taking the leap. Jay, who is becoming a stay-at-home dad later this year after deciding to retire early at the age of 41, is one of them. He has been saving and has a wife who will keep her full-time job as a professor — but he’s still a little unsure about the big lifestyle change. https://www.marketwatch.com/story/heres-why-you-shouldnt-retire-super-early-even-if-you-can-2018-08-30
  20. I can't believe this article was even allowed to go to print.
  21. Sep 6, 2018 @ 4:23 pm By Jared Dillian 3Shares This is an interesting rationale as to why investors should pay more instead of less for investments. Fidelity Investments introduced two mutual funds last month that cost investors nothing. One is focused on U.S. equities and the other on international assets. This is not a gimmick. The funds have already attracted almost $1 billion. The move was the latest salvo in a rapidly escalating fee war in the money-management industry. But let's not declare the death of funds with high sales loads and other fees just yet. I am strongly in favor of lower fees, just like any rational person. This is simply capitalism doing what capitalism does. Consumers should benefit, especially with all those studies about how fees eat into returns over time. I am also in favor of money managers earning enough to make what they're doing worthwhile so as to preserve a wide array of consumer choice. People should be able to have more kinds of peanut butter than just Skippy and Jif. Sort of lost in the whole discussion about expense ratios is that there are still a lot of mutual funds that charge significant sales loads, usually to pay for marketing and distribution. One might ask why someone would pay 4.5% off the top with no discernible difference in the quality of a fund. But fees on investment products can actually be good. Sometimes, such as with high commissions on stock trades, the sales loads ensure that investors are much less likely to churn their funds if they have to pay 200 to 500 basis points each time they want to get in or out. Fund companies will often drop the sales charge if investors switch between funds within the same complex, but most investors don't often switch. They will hold a fund forever — usually to their benefit. (More: Fidelity's zero-fee funds unleash the power of free) With the exception of Warren Buffett, the evidence on buy and hold investing is somewhat mixed. Based on my own experiences, investors who held a somewhat narrow portfolio of individual stocks for a period of decades have done the best. Out of any basket of 30 or so marquee large-cap companies, there is bound to be one Apple Inc. or Amazon.com Inc. These investors took a long view, partially because they were customers of a full-service brokerage and were too cheap to pay commissions on continuous stock trades. When it comes to investing, humans are fallible and they happen to be more fallible when costs are low. Even Vanguard Group Inc. acknowledges that investors, left to their own devices in a fund complex with near-zero expenses, engage in sub-optimal behavior to the detriment of their portfolios, moving money in and out of funds like crazy. In a 2016 research piece on something called "Advisor Alpha," or the idea that a financial advisor can help you generate a better return than some benchmark, Vanguard said that based on a study of "actual client behavior, we found that investors who deviated from their initial retirement fund investment trailed the target-date fund benchmark by 150 basis points." (More: Morningstar: Fund fees continue to fall) So, Vanguard suggests that investors should work with an advisor from the firm's full-service brokerage, which few people probably even know exists. It seems a bit counterintuitive that the industry-recognized leader in low-cost, do-it-yourself funds actually sees opportunities in high-touch wealth management. But I'm a proponent of such "behavioral coaching" if it helps remedy some of that stupid churning behavior that plagues many retail investors. It would seem that the ideal model would be for a wealth manager to diversify its clients across a range of low-fee mutual and exchange-traded funds, but high-touch isn't free. How much could someone reasonably charge for the simple task of picking a diversified portfolio of index funds, especially when a roboadvisor will do it for mere basis points? I have always been of the opinion that investors have done best in high-fee products with high transactions costs, bought and held over time, which are a built-in form of "advisor alpha." I will change my mind when I meet my first Vanguard customer who is a billionaire. Jared Dillian is the editor and publisher of The Daily Dirtnap, investment strategist at Mauldin Economics, and the author of "Street Freak" and "All the Evil of This World." He may have a stake in the areas he writes about. 1 COMMENTS
  22. tony

    Don't Retire Early Even If You Can!!

    No Kidding. My son is finding this out. He was "promoted" a month ago which was a complete farce. They gave him a .50 cent raise per hour and now instead of working 10 hour days he is working 12 hour days. He tells me its a brutal environment. My brother is in industry too and his job has pretty much destroyed him physically. At age 57 he still as to ask permission to go to the bathroom and says his body can't take it much longer. Neither one has a defined pension. This has opened my son's eyes. It was /is a good experience but he is realizing that this type of life can't be a long term proposition. He is reviewing his options including returning to school.I am encouraging him to save all he can so he may leave this envirionment. I was fortunate I guess to have a pension and to have been in a job that while stressful gave me the summers off and didn't require so much physical wear and tear. I don't miss the working world at all. Your average American is working 50 hours a week or more!! They say hard work never killed anybody. I am not so sure . You got to wonder why so many folks are abusing pain killers. Maybe its their jobs. Things need to get much more worker friendly for employees but seems like management is only interested in the bottom line.
  23. I agree with Steve. I think most of the folks who frequent here could see through this guy instantly.
  24. Fidelity said it will start two additional zero-expense-ratio mutual funds, stepping up its push to lure cost-conscious individual investors. The Fidelity Zero Large Cap Index Fund and the Fidelity Zero Extended Market Index Fund will be available beginning Tuesday, Fidelity said in a statement Wednesday. The fund manager has gathered about $1 billion since creating the industry's first free index mutual funds in early August: the Fidelity Zero Total Market Index Fund and the Fidelity Zero International Index Fund. Fidelity's initial salvo caught attention across the money-management industry as companies compete for customers by slashing expenses. (More: Fidelity's zero-fee funds unleash the power of free) From Investment News "Fidelity is looking to improve its competitive positioning and marketing effort against other brokers including Schwab, TD Ameritrade, Vanguard and Bank of America with its Zero Index Fund launch and improve its net new asset levels," analysts at Credit Suisse Group led by Craig Siegenthaler wrote in a Sept. 4 note. Fidelity has about $7.2 trillion under administration, including $2.6 trillion of managed assets. Its new Large Cap fund will track an index of large-capitalization companies, while the Extended Market fund will track an index of small and midsize firms.