Jump to content

sschullo

Members
  • Content count

    4,544
  • Joined

  • Last visited

Everything posted by sschullo

  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. California teachers, administrators, union leaders and us regular teachers and retired teachers. The SEC will convene a summit, a first time ever meeting, for all 403b and 457b stakeholders. Because of the NY Times 403b series of articles showing the horror stories of teachers and their 403b plans, the California offices of the SEC want to educate our educators so that they have some protection against the 403b sharks. It's from 9:00 to 12:30. The flyer offers information and the agenda. I am going to be there and I believe others from this board will be there too.
  10. sschullo

    403(b) help!

    I just PM Micheal.
  11. Hi Michael,

    Shannon has a question which requires your expertise.

    Have a great day,

    Steve

  12. 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.
  13. sschullo

    $1.50 gain in my portfolio!

    Once in a great while my portfolio gains or loses a minuscule dollar amount after a single day of trading. Yesterday was one of those days. I think is interesting what the market gives and takes on a daily basis and how it performs and how much money I have saved with extremely low costs (WOW!) over many years with a typical, ordinary and boring portfolio appropriate for a 71-year-old who needs it for retirement. I have downloaded my portfolio from M* every day, just to watch it change from day to day, quarter to quarter, and year to year. I have a daily log going back three years, and an annual log going back 25 years. Anybody else had similar low dollar amount return?
  14. 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.
  15. 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?
  16. 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
  17. sschullo

    403(b) help!

    Hey Micheal! Shannon: here is his Michael Devault's connection information: http://board.403bwise.com/profile/6-michael-devault/ He knows all of this compliance stuff!
  18. I think you are fine with 100% stock allocation and you survived two of the biggest stock market crashes in history. Obviously, your tolerance for risk is much higher and broader than mine because I think you said that you and your wife can live off your pensions just fine. Heck, you could still be in 100% stocks as long as they are diversified as I know you have. Why have any bonds because your investments are for other reasons than you and your wife's retirement. The allocation to bonds are for people who need the money. I don't think you do. I have known from day one after the tech bubble collapse that I will need the support of my investments in retirement and took precautions before 2008. That crash REALLY affected me. After a few years of shock, I have learned great strategies that are so commonplace now (diversification, passive strategy FOREVER, very low costs and the now famous stock-bond allocation split). BTW, very few people predicted 2008. As it turned out for me, paying extremely low costs and getting these returns below since I retired produced some great annual incomes. Heck, last year I grossed over $200,000 for the first time in my life, and this is from a 30/70 stock bond split (pension, investments, SS and my VA compensation). But most were from my investments that grew 9.0% last year. I am very proud of that achievement! 2007 5.20% 2008 -11.9 2009 13.90% 2010 10.60% 2011 2.50% 2012 10.00% 2013 6.90% 2014 6.00% 2015 0.005% 2016 5.90% 2017 9.00% I am sure when we were in our 40s and 50s older people worried about us and that we never experienced downturns. People will always make mistakes, and you and I are about the only people, (and a few others here and on Bogleheads) who admit to making mistakes. OMG! Financial mistakes! I never had an issue with making mistakes and learning from them. Money is not important to my ego and identity, but the process is important! All I did over the years is live belong my means, always putting away something and learning about investing as I went along. Getting abused by the annuity monopoly helped with my initial motivation to straighten myself out and pay attention to my money and never let somebody else manage it. So I would not worry about young people. Never let somebody else manage your money (But you can hire somebody to learn from them and then do it yourself), pay low costs, have a well-diversified plan, in other words, set up a very BORING portfolio and stay the course. None of this is original, I learned the emotional part from experience and ALL of my investment strategies from others.
  19. My late spouse and I were enjoying the grandest canyon in the world, the Grand Canyon, on that horrific day when Lehman Brothers collapsed. From investmentnews.com: While Lehman's Sept. 15, 2008, bankruptcy still stands as the largest in U.S. history, it's worth noting that of the 10 largest U.S. bankruptcies, six occurred in 2008 and 2009. Did I read Six! Wow! My boring portfolio did what it was set up to do with a 30/70 stock bond split. Minus 11.8% in 2009 and soared up to 13.9% in 2009. That's how the stock market works, after crashes it always goes up, but we just don't know when. I learned my lesson when I lost 70% during the tech bubble and crash. Never again will I be so risky (and dumb) with 100% stocks and most in tech stocks.
  20. sschullo

    Don't Retire Early Even If You Can!!

    I am with you Ed. Imagine the author writing that "OTHERS WILL NOT UNDERSTAND" is this author SERIOUS?!!! Again this is all CRAP. This "author" has no idea why young people are going this route. It is brutal working for some of these companies. Sure they get paid a lot but the stress is not worth it. So according to this author, these young people should NOT THINK DIFFERENTLY because others won't understand. Is this serious or what. And it gets worse! What a crock! This author is desperate for a publication. I met 60 of these young people last summer and they are super. They are working to get out of their high-stress jobs working for somebody else and want to be financially independent at an early age. I love it.
  21. ALL CRAP! The active-passive debate has been around for 25 years and these high-cost and delusional active manager types never give up. Two sentences at the end show what this idiot is really about. He wants more and more, and only a $billion would satisfy him "I will change my mind when I meet my first Vanguard customer who is a billionaire." And in the footnote, regarding this so-called "author", "He may have a stake in the areas he writes about." OF COURSE, HE DOES!
  22. sschullo

    Best 457 vendor?

    Ditto: Follow krow36's asset allocation plan with Fidelity.
  23. California Teachers: I talked to one of the coordinators of this event. They are inviting board members, benefits administration personnel, anyone with decision making power. And of course, they want anybody with an interest. I am going just to find out who else is interested. Our advocacy is tiny, and we need to grow. If any of you know your benefits administration personnel, superintendent or any board members of your school district, let them know about this rare event. Give them a copy of the flyer. Who knows? They might attend. Some districts are so small, some teachers may know these people by first name!
×