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April7th

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  1. How To Find The Right Financial Pro

    Hi DK, If every working person who has a 401k, 403b or 457b plan just invest in a Target Date fund as you suggest, they would be so much better off than all of the other strategies combined. Taking how Elon Musk, CEO of Tesla Motors, Inc., thinks when he says that it will be illegal for humans to drive cars in the future, I think it a similar situation will develop concerning having humans manage their own finances or others. Humans make too many mistakes or it's too expensive to hire a professional, and the pros make mistakes too. The way technology is improving, I envision an investing world so technologically advanced that investment products and services will be 100% combined. Now service and products are 99% separated. The 1.0% is the Target Date approach with index funds and are the beginning of that integration. Robo investing is another approach. It's catching on and it will take another five years. At which time, I can just put my portfolio in one of these programs and it will do EVERYTHING automatically, calculate dividends and cap. gains for taxes, rebalance, tax harvesting, backdoor Roth conversions, distribution plan in retirement, contribution plan and projections during the working years, predict how long my portfolio will last taking money out, etc. There are separate programs that do that now, but it is not integrated just yet. I am sure there are some in the beta stage at the moment. Releasing them to the investing public is a huge risk without adequate testing for ease of use, and taking consideration of all types of individual investor's unique financial situations. Plus the industry would not want this as it might impact their business model of keeping the investing process complicated and intimidating, when it isn't AT ALL! Vanguard will welcome this new technology because it will require their passive strategy. And it's so incredibility simple! Vanguard's $4 Trillion has already impacted Wall Street and 20 million clients seem to understand. Once again, the Target Date Fund is sooooo simple! My 80 something Italian Grandparents could understand even though they died in the 1930s at the Wisconsin farm where I grew up and never spoke English! Sorry, I had to show off my grandparents. Aren't they cute?: Exciting times are ahead, Steve Love the grandparents pic! Thanks for sharing. Here are my questions about Target funds: Do you think they re-allocate often enough? Is the extra cost worth it for someone just starting out? I have a friend who is using a Target fund, upon my advice, because she has absolutely ZERO interest in educating herself about investing. She has about 15 years left before retiring. In her case, I definitely think it is the way to go. But I do like an even cheaper alternative: Vanguard Total Stock Market Index Fund (VTSMX) Vanguard Total International Stock Index Fund (VGTSX) Vanguard Total Bond Market Fund (VBMFX) But that requires, obviously, reevaluating. (By the way, less than a year ago, I was the absolutely clueless investor that most teachers are. This blog has been amazing. I am no pro...but I have learned sooooo much!) But I digress! So, more thoughts on Target Funds? I am invested in Vanguard through Aspire, so there is that extra fee to consider, also. Still, I feel am so much better off than I was.
  2. Hi Tony, Interesting! I have called more than once to verify this and I am getting consistent answers...I cannot move money from my 403(b) into the 457. Not at this point. But I have also seen articles that seem to contradict that. The key word here is "seem". It is very confusing to wade through. The following link made my head spin but maybe could shed more light if someone else could sift through? https://www.nrsforu.com/nrs/media/images/nrsCommon/factsheet457rollovers.pdf Thanks!
  3. Hi Christina! I think a lot of the confusion is in the terminology. A rollover vs a transfer vs an exchange....yikes! I also spoke with people from Aspire, OMNI, and NYSDCP. They told me the same thing. We cannot move money from a 403(b) until we are 59 1/2 or are separated from service. AND people were VERY patient and helpful. It makes me feel better to see it here that my researching and digging around is confirmed. Good luck with everything!
  4. Ok...I think I have more information. I cannot TRANSFER from a 403 (b) into the 457. I can only transfer from a 403(b) to another 403(b). (Or I can EXCHANGE from one fund company to another WITHIN the 403(b).) I can ROLLOVER from a 403(b) to a 457. But only under the rules that apply to rollovers. I do not qualify for a rollover, unless I want to pay all kinds of penalities. Confusing but I think I am getting there! I think the above info is correct. See the link below that helped me. (Is it ok to include that link, by the way???) http://money.howstuffworks.com/personal-finance/financial-planning/retirement-account-transfer-rollover.htm
  5. Hello, Well, not making much progress. I noticed the Aspire fees...which is why I thought I would try to move into the 457. Although the IRS site shows the transfer is possible, it does not show under what conditions. Retirement? A certain age? When I spoke with people from Aspire, OMNI, (3rd party administrator of 403(b)), and NYS Deferred, I was told that I could not. But when I called again, NYS, one person said I could. Not sure what to do. Guess I will keep investigating! Thanks for the feedback.
  6. 457 Option In A School Distict

    Hello all! Upon request, our district has added a 457(b) plan, as I have mentioned in another post. I have begun making contributions...even though there are not A LOT of options, there are several that are very good. I was hoping to transfer (exchange) some of my 403(b) American Funds from AF to the 457(b). But upon further digging, I find that that is not possible...not until I retire? Or reach 59 1/2? It is a bit confusing because one person I spoke with said yes I could but another said...nope! The IRS site has a chart that lists it as yes...you can, but it does not say under what circumstances. Anyway, happy to have the 457(b) now available. ..with great low-fee options. Just trying to learn more about it. Any comments? Thanks!
  7. I see we are on the same page! I had that chart, also, and thought maybe I would send it with my enrollment paperwork. As you say, what could go wrong?!?! Thanks!
  8. Hi Krow! I also saw that on page 22 and I asked someone at the NYSDCP office. She said that is the correct form (with the former employer info requested). But that does not sense to me! She had no explanation why that form was correct. I am confused! Another person told me it is not possible to transfer money from a 403(b) without incurring a penalty. I really am at a loss to know what to do next. Call again and get another person???? Confused!
  9. Hello, Now that I am better educated about the intricacies of my school's 403(b) plan, I find myself with the option to enroll in the NY State 457(b) plan. Hmmmm.....so this is new to me. I was wondering about moving my investments into the 457. Is it possible? I mean, of course, without penalty. I contacted the people at NY State 3 different times and got 3 different answers. I believe it was Tony, or maybe Steve? who said he had switched out of Aspire and into his 457(b). At the NY State site, the paperwork is confusing because it asks for information about my "former employer". But I am still employed; I merely want to move to the 457. Maybe I can only do this if I am retired? Thanks, in advance! April
  10. 457B State Plans for K-12 employees

    Hi Krow and others! I am using a NY state 457(b) brochure that is a bit newer than the one listed here. The newer one is a shorter, more succinct version. Maybe both site links could be included? My school just made the 457(b) available so I am looking into switching over and I have been using the newer brochure. https://www.nysdcp.com/tcm/nysdcp/static/fee_transparency.pdf?r=1
  11. Oh thanks, Krow. Very clear guidelines. I appreciate your taking the time to create these lists. This helps a lot!
  12. Hey, forgot to say, "Happy New Year!"... this should be an interesting year, albeit a bit unsettled? We shall see. Thanks!
  13. Finally getting a chance to list the AF accounts. If anyone has a thought on ditching or keeping these, I welcome your input. By the way, our district has now made a 457(b) available and it looks like we have good choices within that. I will have to check that out further. We are making progress! AF: AMCAP Fund® Class A. ....0.67% AHITX...American Funds American High-Income Trust® Class A...0.71% CAIBX...American Funds Capital Income Builder® Class A...0.59% CWGIX...American Funds Capital World Growth and Income Fund® Class A...0.77% AEPGX...American Funds EuroPacific Growth Fund® Class A...0.83% ANCFX...American Funds Fundamental Investors® Class A...0.60% AIBAX...American Funds Intermediate Bond Fund of America® Class A...0.61% ANWPX...American Funds New Perspective Fund® Class A...0.77% SMCWX...American Funds SMALLCAP World Fund® Class A...1.10% ABNDX...American Funds The Bond Fund of America® Class A...0.60% AWSHX...American Funds Washington Mutual Investors Fund Class A...0.58%
  14. Not QUITE sure how to use the quote function here...but here goes! Using Aspire, I have advised everyone to skip the advisor and go to either a target fund or look at suggestions (found here on this site and at Bogleheads site) for choosing 3 or 4 funds that allocate nicely. With the target funds , I tell them, set it forget it. With the choosing of three or four, I just remind them they will need to shift percentages over time, no one will do that for them. I have learned soooo much from this website. Quite interesting! And really helpful. I am not knocking Aspire, really. I understand these things happen. And well worth the effort. It truly is our ONLY decent choice here at my school district. People have been shocked when they sit down and really start to understand how much money they are losing. It is so easy to feel inadequate when an "expert" such as a sales person from Axa shows up in one of our faculty rooms. I have met with over 200 people so far, more to come. However, I do not ever profess that I am in any way an expert! I simply show them some numbers. So! Back soon....have a great holiday season.
  15. I will get that list posted this week...when I have a minute...crazy hectic this time of year. Thanks! I really appreciate that you might have the time to help me out. Yay! I will say, I have gotten rid of EJ; their fees were VERY high, in my opinion. Way higher than the Aspire fees. The AF funds are just sitting out there, all by their lonesome, no advisor. I am trying to figure assest allocation. It is a bit tricky because of the funds I currently have through Vanguard and AF. I will be back! BTW, I have managed to convince a great number of people to switch to Aspire, through offering Superintendent conference day sessions and new-teacher mentor meetings. I have included this website in every meeting...I am getting a lot of good feedback. Only one nuisance issue with Aspire, however. I have helped a bunch of people fill out all the Aspire paperwork, only to find Aspire was using a new form and had not updated it online. Ay yi yi! I have listened to a podcast here with a representative from Aspire...I wonder if he knows about this glitch? Anyway, everyone had to re-submit forms. But...worth it! Thanks again.
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