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  1. Model Disclosure form & the 403 B task force

    What can be done about it?
  2. This Index Card Says It ALL

    Ken Ed has got your number. I agree with him that you are trying to sell something, and it's your philosophy of an active manager type that you are trying to sell to us. As you know, we nor the Bogleheads are active manager types. We are DIYers, and our philosophies differ big time. DIYers do not need advisers. It's pretty simple. We have had this conversation before and because you are in sales, you have to do SOMETHING! The active/passive debate has been settled years ago. Vanguard keeps growing and growing, soon it will reach 5 Trillion dollars in assets! Wow! You take our criticism personally because selling is part of you. Bogle and Buffett are not sales people, never have. Neither is Mr. Money Mustache. Your subtlety is obvious here. If you want to educate the k12 market, read Scott Dauenhauer's book: https://www.amazon.com/Wild-West-Providing-Fiduciary-Employees-ebook/dp/B01AGRT4SA#customerReviews But Scott's book alone will not change your investing philosophy. Quoting Bogle and Buffett will not work either. When you say the future predictions are rock solid from decades of past returns, you know that is not the total picture because averages leave out the volatility and the short-term losses, which can be massive, that are also in the FACT record. Changing investing philosophies will take a major metamorphosis. It can be done, but you have to be "sold" on passive investing philosophy. This broker who wrote this piece got the picture when he worked at Goldman Sachs (http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html Good luck to you Ken, Steve
  3. This Index Card Says It ALL

    Can you explain a little more?
  4. Model Disclosure form & the 403 B task force

    Hi Ken, We had this conversation via my blog sometime last year. It's a joke! The annuity industry knows that this form can never be implemented or enforced. At LAUSD there are over 200 sales people and who is going to keep a record of this form every time a salesperson talks to a teacher? Who? How will 3 or 4 district staff manage the disclosure form of all of these people who sell dozens and dozens of products? Steve
  5. This Index Card Says It ALL

    Spoken like a true broker and salesman, but data retrospection has no value except to show how a diversified and balanced portfolio performs over past market crashes. Past data NEVER give anything meaningful on predicting future returns. As you know I will never respond to natural market fluctuations. I rebalance because my portfolio is out of whack, NEVER in response to the noise that is everywhere!
  6. TIAA Traditional

    I have the TIAA Traditional too because of its guarantee of 3.0%, no loss of principal, liquid 24/7 and no costs.
  7. Who Decides 457 Vendors?

    Inform your HR department that TSA consulting group will add Pension2, they need a decision from the district. Thus, ask to talk to the person who makes these decisions of which choices are included in the 457(b) plan. Be very nice because the district HR people are incredibly fragile. Years ago I was such a threat to western civilization for merely asking to have Vanguard or Fidelity on the 403(b) list, that when I came into the office there were always two people to talk to me, never one they were so terrified. Even on the phone! I kid you not. So be NICE! :- )
  8. My 33%/67% stock-bond balanced portfolio returned 9.0% Every end of the year I post my portfolio returns, costs, and asset allocation. My portfolio is appropriate for a 70-year-old retired teacher who needs to make distributions last for the rest of my life. If you are younger, leaving your money to your children, or you don't have to rely on your portfolio because your pension is big enough, then, by all means, you can increase your risk by increasing the stock allocation to 60%, 70% or higher percent. I hope that how I constructed my portfolio will assist anybody who is wondering about portfolio organization. My portfolio is extremely low cost, only .07% fee! I paid approximately $1102.00 last year! Happy New Year everybody, Steve Pie Chart of my Asset Allocation
  9. Vanguard 403b Services A Mess

    Great summary Tony! Steve
  10. Vanguard 403b Services A Mess

    Of course, Newport wants people to keep their money in the Retired Teacher's district's plan so they can collect extra fees. While I agree that Vanguard is the ultimate responsible partner, let's be clear that it's not Vanguard thats foot dragging the process. The huge size of Vanguard is little to nothing to do with this problem. If enough people complain to Vanguard, they may do something. Hopefully its an isolated case, however, the insurance industry also dragged its feet to when those of us wanted out. It's a shame because Vanguard, TIAA and in some cases Fidelity have recognized and sympathized with us on the 403b mess for DECADES. No other company has done that. I don't know Newport, and perhaps Vanguard made a mistake hiring them, but as I understand it, Vanguard wanted more of a presence in the public K12 market. I am still not sure what the Newport costs are. And we need to reform the 403b mess. It's not Vanguard responsibility that the 403b is a corrupted mess. This was an attempt to make Vanguard more accessible. But it looks like its backfiring. It's interesting what people complain about now. Back in the day, I was just thrilled that I had a no-load mutual fund available in my 403b which has a 12b(1) fee of .25% on top of the regular fee of .75%. did not complain that I had to pay a little more in fees to get the hell out of those horrific annuities into a genuine investment. Yeah, .95% was a high fee compared to what is available these days.
  11. Its that time of the year after today's stock market closes to tally up your portfolio and lets us know how you did for 2017. Its been a great year, even with my conservative portfolio. What a year for equities! The total stock market index is up 21%!!!!!! and Internationals even more 26%. Happy new year! Steve
  12. Its that time of the year after today's stock market closes to tally up your portfolio and lets us know how you did for 2017. Its been a great year, even with my conservative portfolio. What a year for equities! The total stock market index is up 21%!!!!!! and Internationals even more 26%. Happy new year! Steve
  13. 403 B Valic

    This is my vision of the problem you are writing about gobi, and thanks for posting and welcome to the forum. This is THE problem with lack of federal regulations. Scott Dauenhauer and others have called this the Wild West (https://www.amazon.com/Wild-West-Providing-Fiduciary-Employees-ebook/dp/B01AGRT4SA/ref=sr_1_sc_1?s=books&ie=UTF8&qid=1513868080&sr=1-1-spell&keywords=the+wild+west+scott+dauenhaurer.) Each district has different plans, and it is usually up to the relationships between the parties. Our culture makes decisions based on relationships, not content (what is in our best interests). Some districts have an active union, others have active participants (My district), most have long-standing relationships at the school level between office managers, local union rep and or school administration/principals with the sales personnel (for decades in some cases. many are "friends" and former teachers!), almost all made decisions behind closed doors, and district employees rarely if ever complain. As krow mentioned district HR people know ABSOLUTELY NOTHING! For over 50 years, districts have left the entire matter over to the sales force. Some of it has changed because of the IRS new rules in 2007 and that's why districts now have third-party administrators (the record keeper who also helps out with a written plan that districts now have to acknowledge they have a plan). You cannot believe how it was before the IRS (It was my experience that I was treated like I was a threat to western civilization for asking my HR department for a list of no low-cost no-load mutual funds back in the dark ages of the 1990s). FREE PDF download of my book: http://latebloomerwealth.com/publications/fighting-powerful-interests/ . The teachers themselves are comprised of two unique groups. The first group is comprised of very savvy investment teachers who remain silent forever and the second group of teachers blindly buy an annuity and never look at if forever either. A few come here like yourself (or a spouse) to get informed, get out of the annuity and move on. The sales force and the insurance industry benefits enormously from the utter silence that has not been cracked since the 1960s even as the investment world with tax-deferred plans have exploded, changed, and evolved with so many products, low-cost choices and opportunities now that I have never seen at the beginning of my career. The entire investment world has changed outside of our educational culture, but not our culture. But we press on, and on. This uneven administration between districts and between K12 403b plans and the investment world is unsustainable. Sooner or later, the silence will hopefully break loose, and a plan that truly looks out for our colleagues' best interest will prevail. But we are a LONG WAYS from that dream at the moment. The industry knows this too. Read my other post and a link to an industry article about the "Death of a Salesman." Happy holidays, Steve
  14. https://insurancenewsnet.com/innarticle/death-insurance-salesman#.Wjk_ot-nGUl Even the insurance industry is at the very least whispering the horrible word among themselves, FIDUCIARY! Excerpts: "We must reward conduct that incorporates a diligent and professional process of client assessment, product analysis and recommendations that are not driven by the highest commission or override. The process must lead to an unambiguous conclusion that first, the client’s own needs are identified, and second, after product analysis, the recommendation suitable with those needs." Talk about head spinning and ambiguity! Of course, ANY costly and inappropriate IA will be suitable to any teacher whether a 22-year-old or a 62-year-old! This article is about possible changes with other 403bs with other nonprofits employers. Always remember colleagues, the 403(b) world with public K12 are still NOT PROTECTED AT ALL by any of the Department of Labor's rule changes.
  15. Hi Bluejay, Welcome. You get around, first MMM and Bogleheads and now here. Krow already gave you great feedback about the structure of your unique plan, how to find the costs and the three fund portfolio. One boglehead suggested staying away from "advice" from your plan record keeper. Almost all of us who post here and on Bogleheads learned to manage our money without a costly adviser. Yeah, even the fiduciaries can be costly if you are not paying close attention. I always suggest to hire a genuine fiduciary and learn from him or her for a couple of years, and let them go. Make sure said person is not a friend. In case you missed it, bogleheads have a lot of information on the 3 fund portfolio here: https://www.bogleheads.org/wiki/Three-fund_portfolio Also, you are following in the footsteps of millionaire educators husband and wife team: http://www.millionaireeducator.com/ happy holidays and best of furtunes, Steve