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sschullo

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  1. sschullo

    Why Insurance Companies will not do Self-directed 403bs

    Replicated.
  2. sschullo

    Why Insurance Companies will not do Self-directed 403bs

    Yeah, it was n asty here years ago, but fortunately, all of those folks are gone. For a couple of years, one guy claimed he was a teacher but he absolutely loved his annuity agent (also his friend!) and defended all annuity sales and products.
  3. sschullo

    Why Insurance Companies will not do Self-directed 403bs

    Hi krow36 (aka, Dan), I am perplexed by your post. It’s one thing to defend him but it’s quite another to tell us how to behave towards 403bannuitysaleman. It appears that you are equating "tar and feathering" with asking tough questions. We all know that his complaints about the practices and the products in the 403b world are ludicrous. I think it is perfectly legitimate for him to get out of the 403b sales force, read Scotty D's book "the wild west", which helps the profession have a successful practice as a fee-only fiduciary. Have you read Scott book? It's terrific. Heck, I am giving 403bannuitysaleman career advice and he didn't even say thank you. Of course, Dan Otter allows all points of view. BUT this is 403bwise, not another annuity sales website where salespeople (and some who claim to be teachers) come and defend fixed annuities, and we shouldn't ask tough questions? For this salesperson, he was complaining about the products and how ill-informed teachers are, so I gave him some advice, get out. And this was suggested by one of his shark colleagues too! FYI I welcome 403bannuitysaleman posts and our discussions with him because it shows how nonfiduciaries think so that our colleagues can better protect themselves from all annuity salespeople, and stay away from ALL annuities. Yeah, I know, I am using absolutes but in the 403b nonERISA world with public k12 school districts, a few absolutes are absolutely necessary. have a good day, Steve
  4. sschullo

    Illinois Teachers to Get Low Cost Option

    Hi MNGopher, You are correct. Fortunately, the bickering is infrequent. For the most part, we have been and are on the same page with helping our colleagues stay away from the annuity sharks. I am human. Sometimes I get carried away because I have do so well financially in my life. I get overexcited. It really is pretty simple to attain wealth. I was taken back by a previous post on another thread last Sunday defending the annuity salesperson and the fixed annuity. Have a good day, Steve
  5. sschullo

    Illinois Teachers to Get Low Cost Option

    Hi Dan. I know you love to point out mistakes and most of the time you are right. But you are out of line here, accusing me of having a problem with hybrids! Where did that come from? You agree that the article is poorly written with very little details. That's fine because it is a brand new plan. I am just taking the article at face value, and my mistake was to comment on the article in the first place. I thought it might add to the conversation because I do feel great about this development. Good for Illinois teachers. My main point is that they omitted to inform us of that detail. In the financial world, an omission is deadly for all investors. Already, I have read too much into this simple little announcement that Illinois teachers might have a better plan than the annuities we are stuck with here in California. OK, I misread the article, my goodness. In reality, nobody gives a sh.. about this conversation. Heck, most of our colleagues don't know what a stock is, let alone knowing the difference between hybrid pension plan or our regular plans. Most of our colleagues don't know how pension plans work, and why the benefits are about twice or more than Social Security benefits, but I digress. Have a great weekend and don't stop pointing out my mistakes. :- ) Steve
  6. sschullo

    Illinois Teachers to Get Low Cost Option

    Krow36, my goodness this is only the first report and you are stating that its definitely NOT a hybrid. I don't know. But what I do know is that the proponents know how politically risky it is to implement a hybrid plan. As we all said, the devil is in the details and I don't think you can rule out hybrid just yet. Believe me, if it weren't a hybrid, it would be printed everywhere in very clear English. So I wonder. That's all I am saying. This statement is pretty obvious: "And the amount that workers were supposed to contribute to a 401(k)-style plan under a Tier 3 pension plan. The Tier 3 plan combined parts of a defined contribution and a defined benefit plan into a new state retirement program." The keywords that might spell hybrid: 401(k)-style plan and combined parts of a defined contribution and defined benefit plan. I am not totally against hybrid plans until I can determine how they are constructed. The Calif. 457b and the 403b Pension2 plans are separate from the pension plan as we all know our pension plan is not a hybrid as it would never get through the powerful CTA union. Steve
  7. sschullo

    Illinois Teachers to Get Low Cost Option

    Here in California the 457(b) gets around the hideous insurance code. Back in 2004, I heard about a new plan that LAUSD was thinking about offering. When it came out in late 2005, my friends and I knew very little about the 457b plan, or its name, as krow36 said, "deferred compensation program." It is a radically different model because George Tishler and David Holmquist (brilliant administrators) wanted to offer LAUSD employees lower-cost mutual funds rather than high cost, illiquid annuities (that was MUSIC to my ears!). They also knew that LAUSD was going to have to hire a third-party administrator to consult with the new IRS rules which were implemented in 2007. The construction starts with competitive bidding for the one record keeping vendor and a mutual fund platform in which the options are decided by somebody. George and David already knew who was going to decide the investments. My friends and I were asked to be on the advisory committee! Wow! This was indeed radical, and as it turns out 12 years later is the absolute key to getting those low-cost index funds as options. We got an Award for Plan Design in 2014 by the National Association of Government Defined Contribution Administrators (NAGDCA). I wrote an entire Chapter in my book Fighting Powerful Interests about that first year. You cannot believe what we went through to get a great low-cost plan! Ed has been saying that not all 457b plans are good. Because the vast majority of K12 plans (or 401k plans too) have no employees on the advisory committee or no committee at all. If the committee doesn't know or care about hideous revenue sharing costs (which are finally gone from our and many plans now), then the same high cost, illiquid choices could be on the 457b plan. There are 457b plans that are just another name for annuity platform because the same TPA is running both the 403b and the 457b plans. I wonder how Connecticut (how are they requiring 430b transparency and who is monitoring it) and now Illinois are implementing their 457b plans. State plans are the way to go and allow all districts in the state because to do what LAUSD did for every school district will be impossible because of the time and effort from employees to serve on committees. As I said, in 12 years, I have not heard of another public k12 district which as collective bargaining members on the advisory committee such as we do. The Illinois auto-enroll requirement is great but who is going to decide which investment they will auto-enroll into? Yeah, there is the DOL guideline but I don't believe public school systems have to follow it. As Ed was saying it looks like a hy-bred plan mixed in with the pension plan. That would require a lot of education to get teachers to know their options. I am hopeful too but the key now is teachers could have a wonderful low-cost plan available, but they would not know about it because districts and states will not publicise it while the annuity salespeople will continue to do what they have done since the TSA was first released way back in 1961. Do you think they are going to stop roaming our schools and bursting into classrooms during recess and aggressively selling their riskless, high cost and illiquid plans that will lose money against the standard of living?
  8. sschullo

    Illinois Teachers to Get Low Cost Option

    That's quite a leap of faith, but I hope you are right about the NY Times stories influence. From my vantage point, I just don't see change especially here in California. With the exception of the SEC and the CFA showing interest, which are big deals, but both of those potential influencers have political, policy and time limitations.
  9. sschullo

    403(b) help!

    I just PM Micheal.
  10. Hi Michael,

    Shannon has a question which requires your expertise.

    Have a great day,

    Steve

  11. sschullo

    $1.50 gain in my portfolio!

    Yep, the simple answer, proper asset allocation (NO speculations, no individual stocks, no actively managed funds other than Vanguard balanced funds, very low costs) and a proper balance between stocks and fixed. In my allocation above, my bonds went down and my stock indices went up. That's how it works. Love it and it's that simple.
  12. sschullo

    Why Insurance Companies will not do Self-directed 403bs

    I am waiting for an answer. He came here for a reason, and it's not to shoot the bull because we do not tolerate financial bull around here. If he doesn't know, I can accept that because I have a lot of information I can provide for him if he wants it, such as Scott's wonderful book for genuine financial advisers who truly want to help teachers in this very cruel 403(b) non ERISA world.
  13. sschullo

    Why Insurance Companies will not do Self-directed 403bs

    WELL, what are you waiting for? LEAVE the industry! and read Scott D's book excellent book, The Wild West, if you truly want to look out for the teachers' best interest. Once again, 403bannuitysalesman, what do you want? We have known the schemes, the "information", and terrible advice from all of your posts for a long time. What do you WANT from us here?
  14. sschullo

    $1.50 gain in my portfolio!

    Ed, you mean addiction? LOL And I found another bad speller. Heck, M* does all that work for me. It only takes a few minutes every trading day to download my portfolio. Copy and paste on my file what the DOW, Nasdaq, and S&P have done and a summary of the day's activities, all from M*. Steve
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