Jump to content
bWise Forums

Search the Community

Showing results for tags 'Vanguard'.



More search options

  • Search By Tags

    Type tags separated by commas.
  • Search By Author

Content Type


Forums

  • 403(b) and 457 Discussion Board
    • 403(b) Forum
    • 457 Forum
    • Church Plans

Calendars

  • Community Calendar

Group


AIM


MSN


Website URL


ICQ


Yahoo


Jabber


Skype


Location


Interests

Found 8 results

  1. Hi, I am a 27 year old teacher in Missouri whose district's 403(b)/457 options are provided only by FTJ FundChoice. I've attempted to parse through all the documents, understanding the layers of providers, RIA's, fees, etc... It's been a rabbit hole! In short, here are some things I *think* I've found out: My District's plan guy (perhaps IRS Coordinator? not sure) has a title of "Investment Advisor Representative". His business card says "Forrest T. Jones & Company" researching him online, he is apparently with National Pension & Group Consultants Inc. in Kansas City, Missouri. Not sure what that means. He informed me that his fees are: $25/year for the account .95%/year AUM Fee Two Options - Self Directed or Outsourced. Self Directed - all done in FTJ FundChoice Website called, 'portfoliologin'. It is built on Orion Architecture. In addition, FTJ FundChoice uses TD Ameritrade Trust Company for the purchase and sale of securities. Not sure exactly why Orion's 'interface' is needed, especially if trades go through TD Ameritrade... Vanguard is available. Admiral Shares. Outsourced - This is where things get interesting. I initially brushed this aside, as I was planning to go all Vanguard and be done. However, I did not realize that the option of DFA access might be available. I am especially irked by the .95% AUM fee, especially that it seems all my 'investment manager' does is sign me up and let me decide to have another company allocate my money, or have me do it myself. I'm not exactly sure how or why this is the case, but knowing that FTJ is built on Orion's web interface, which in turn uses TD Ameritrade Trust Co to actually enact trades... I feel like the layers of fees are just egregious, and I do not understand to whom every basis point is going. I guess I just took the .95% at face value, since that's our only provider. Three 'strategist spectrums': Strategic, Tactical, and Diversifiers Strategic - Loring Ward & PGR Solutions available. Loring is an additional 0 pb, PGR is 10. Both offer acccess to DFA Funds. So, after all of this: my only concern is that both Loring & PGR (I think) offer comprehensive portfolio solutions; I seek to create an 'all value' portfolio, preferring to invest in VTSAX/VTIAX in my Roth IRA at Vanguard. Knowing that I have a well-diversified pension (14.5% employee contribution), I know I can take the volatility that the all-value/small/emerging markets portfolio would afford. I tried contacting FTJ themselves about DFA Access, and they seemed unsure, claiming that my 'advisor' (Mr. .95%) might have to 'request access' himself. If this is the case, then maybe I will be able to create my own custom allocation... still unsure here. Anyways, I just wanted to get some thoughts. This is my first foray into the 403b/457 world, and I want to take advantage of my age, low fees, and the academic research as best as possible. If I had known day 1 that there 'might' be a DFA option, I might have chosen to do that instead of self-direct and choose Vanguard funds... TLDR; navigating these is a PITA, looking to offset the .95% management fee via beta, and figure out if I have DFA access/to what extent I can customize. Linked is a .pdf of the handout the advisor gave me when I signed up for my plan. Took me a while to find it, but its the exact same as my worn, pocopied copy... FTJ_ProgramDescription2015-07.pdf
  2. A little background... I've worked in my district since September 2016. Before that, I was working in another neighboring district in New York. I also worked in New Jersey for about 3 years, another school in NY for about a year and a half, and Connecticut for a year. I'm 31 years old and have been a school counselor since I was 22.... crazy how the years have flown by without much knowledge of 403b's and retirement accounts. I completely fell into all the traps mentioned in the podcasts. I fell for opening up an AXA 403b account at the age of 22, thinking I was being smart for starting my retirement so early. When I started at another school and considered contributing again, I realized my growth was minimal with AXA. Before opening up another 403b account with another company (I was considering Voya at the time), I inquired with AXA about transferring my funds. It was at this point I realized that something wasn't right. Trying to be more savvy, I asked the Voya "advisor" many questions before opening an account with them. I was told I wouldn't be locked into a surrender charge as long as I didn't put any money into guaranteed accounts. So that's what I did. Fast forward to today, I got very lucky that my district has done the hard work for me. They offer a ROTH 403b with Fidelity and Vanguard 403b. Learning from the podcast, I created a ROTH Fidelity account. I am in the process of transferring my AXA and Voya accounts into Vanguard, but I'm not sure if I should open up a Vanguard 403b or IRA account? Part of me feels like I should open up the 403b account so that I have it with the school just in case anything changes, but another colleague suggested I do a Vanguard IRA account so that my money is more flexible. Does anyone have advice on this? Thanks so much in advance!
  3. What To Do About Vangurd?

    Hi everyone, I haven't posted in awhile, but I knew just where to go for advice! (I'll be back more frequently going forward) I received the letter from Vanguard regarding my 403b account, as has recently been discussed on here. I'm just not sure what to do about it, and I could really use some advice. OMNI charges me $3/month to use Vanguard, and Vanguard charges me $15/year to invest in a Target Date Fund. I decided $51/year in fees (on top of expense ratios) was worth it for the privilege of having access to Vanguard, since most of the offerings from my district are not as good. I imagine the OMNI fees won't be going away, so the partnership with Newport looks like it will raise my fees from $51/year to $96/year. I only started investing last year, and I only have $2100 in my Target Date Fund. It looks like this fund does not have access to Admiral funds, so if I stay with Vanguard I will need to exchange these for something else to take advantage of the switch to Newport. It feels a little foolish to stay with Vanguard, however, since a much larger portion of my gains will be consumed by fees. But, given that it is a 403b, taking the money out before retirement seems like a no-go. Are my first year's contributions simply held hostage now? Here are my options, as I see them. I have no idea what to do next, and I would love some guidance: 1) Keep the status quo, pay more in fees. 2) Stay with Vanguard, but switch into something that has admiral class shares. I don't want to use a managed fund. Higher fees remain, but hopefully I will pay less in expense ratios that will make this more advantageous. That said, my small balance means this will be marginal at best, right? 3) Treat this as a hostage situation, and we all know that the US doesn't negotiate with terrorists. I would leave my money in Vanguard, stop contributions, and open an account with someone else to begin contributing to. The decent options that I have access to are Aspire (403b and Roth), T Rowe Price, and TIAA. 4) Stop all retirement contributions, try and save $3,000 and open an IRA sometime next year. 5) Another genius idea that only the folks at 403bwise would think of. You guys rock. The fourth option I like because, ideally, I would like my savings to not be taxed when I withdraw in retirement. But I don't have $3,000 saved, and I am not optimistic about my ability to save it on my own. Medical bills seem to be frequent things nowadays in my household, and there will always be something important that I will need to put my savings into. Having my district take the money out before I can get my hands on it has worked well so far. The ROTH Aspire is an attractive option for these reasons, but I have access to lower-fee options than Aspire so it is difficult to go with them. I would LOVE any advice. I am feeling stuck. Erich
  4. I Moved Money Out of Vanguard by Dan Otter
  5. Interesting comments by savers. Add your own here at 403bwise https://vanguardblog.com/2017/04/18/the-coulda-shoulda-woulda-behind-every-retirement-story/?EXCMPGN=EX:EM:RIG:eITV:050317:EDU:Link:slot1:101:RET:XX:XX:XX
  6. The Vanguard Story

    In the last three calendar years, investors sank $823 billion into Vanguard funds, the company says. ….. the rest of the mutual fund industry — more than 4,000 firms in total….. combined took in just a net $97 billion during that period, Morningstar data shows. Vanguard, in other words, scooped up about 8.5 times as much money as all of its competitors. https://www.nytimes.com/2017/04/14/business/mutfund/vanguard-mutual-index-funds-growth.html?ref=business
  7. I know there is a lot of bashing of financial product salespeople and rightfully so. But there are some advisors that can add value to individual investors. In my 20 years of guiding investors, I have seen almost every mistake that can be made with regards to investing. Learning from those mistakes can save new investors a lot of grief and hard earned capital. Finding the right advisor to work with could add 3% in returns via Vanguard research. I'm glad that Vanguard sees value in working with the right advisors. I think I could add a few bullet points to the list but will leave in be. Ken https://pressroom.vanguard.com/press_release/Vanguard_Research_Quantifies_the_Value_of_Advice_3.10.2014.html Calculating how much an advisor can add in net returns is based largely on their approach to five wealth management principles. Although the exact amount may vary depending on client circumstances and implementation, an advisor can add value by: Being an effective behavioral coach. Helping clients maintain a long-term perspective and a disciplined approach is arguably one of the most important elements of financial advice. (Potential value add: up to 1.50%.)Applying an asset location strategy. The allocation of assets between taxable and tax-advantaged accounts is one tool an advisor can employ that can add value each year. (Potential value add: from 0% to 0.75%.)Employing cost-effective investments. This critical component of every advisor’s tool kit is based on simple math: Gross return less costs equals net return. (Potential value add: up to 0.45%.)Maintaining the proper allocation through rebalancing. Over time, as its investments produce various returns, a portfolio will likely drift from its target allocation. An advisor can add value by ensuring the portfolio’s risk/return characteristics stay consistent with a client’s preferences. (Potential value add: up to 0.35%.)Implementing a spending strategy. As the retiree population grows, an advisor can help clients make important decisions about how to spend from their portfolios. (Potential value add: up to 0.70%.) How an advisor approaches two additional principles, asset allocation and total return versus income investing, can also add value, but are too unique to each investor to quantify.
  8. Adding New Vendor

    Hi, I am a new member to this forum and I joined after making some changes to my plan in the past month and trying to changes in my wife's district. I teach in NJ and AXA is in our district at least twice a year and pretty much cornered the market in our schools. I found out that we had Fidelity as one of our approved vendors and since I was 13 years in I was able to avoid the 12 year surrender fees. My wife teaches in a nearby district and AXA is also very prominent in her district. Her district has 3 providers in her town, AXA, AIG/VALIC, and Lincoln. So basically a broker and two insurance companies and the best she can do is pay the .9% fee that Lincoln charges. She is trying to add a new vendor to her town and she is running into some hurdles with the district policies. First, we were pushing Vanguard and had a contact from Vanguard who was very helpful and even spoke to the 403B administrator in her town. The problem is Vanguard does not allow loans against the 403B and the sharing agreement that is standard. The contact at Vanguard said we could probably get by the sharing agreement, but the loan thing is a total killer and unless we can get that removed from the board policy we would not be able to add Vanguard. Fidelity was not as helpful as the loan provision was a potential problem, but they also wanted 10 participants and $1,000,000 assets in order to add them as a vendor. Her district is not very large and that might not be a possibility. T Rowe Price is actually no longer adding school districts into their 403B plan. And finally we talked to TIAA-CREF and they would not give a lot of information without the school administrator on the phone. And their fees seem to be quoted at .42% to .92% which is much better than AXA, but not in the same class as Fideity or Vanguard. Those seem to be the four best low cost 403B vendors and the ones I had her target. If there are any names I am missing please let me know. So now I am still trying to push Vanguard and I am interested to know if anyone has had a similar problem with a provision in the rules with the board of education and how to get that changed. The ability to take a loan exists with 3 vendors already so adding a vendor that does not allow loans seems perfectly reasonable to me. My wife is meeting with the 403B coordinator next week and is trying to find out all the informationshe can beforehand. The school administrator is being helpful and understands the problem, but it seems her hands are tied by the policies a little bit also. Also, I have read about ACTS in NJ becoming law in July of 2013 and TIAA-CREF will be a vendor. I tried to call Ed Wade today and eventually got the name James Jefferson who never returned my call. But, if ACTS does become available for all K-12 teachers and she is not able to add Vanguard would she be able to open an account with TIAA-CREF through ACTS despite not being an approved vendor? And would she be able to transfer her assets from her AXA plan she is currently in? Thanks for any help in advance and I look forward to getting myself and other teachers as informed as we all should be as soon as possible,
×