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kal

Excessive fees?

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I am retired from LAUSD and have a 403b account with Voya. Your forum has made me aware of fees and I think I am a victim ...does $132.49/quarter sound excessive? If so, I’d appreciate some advice. To add to my financial woes, I also have an annuity through LSW. How fast should I get out of this? And where should I go. Thanks for any ideas.

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Kal

More specific info needed. What are you invested in with Voya-What funds. What is LSW? what funds are you invested in there? Al Please supply us with a list of all options available to you in your 403b. How much money do you have invested  (optional but possibly helpful).

We will help you sort this out .

Tony

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Almost all 403b accounts with insurance companies have excessive fees. How fast? Now! 

Where should I go: LAUSD Award-winning 457b plan. Ironically call VOYA who is also record keeper of the 457b plan. However, there is an advisory committee that oversees what VOYA does in the 457b side. 

Below are the options for the 457b. Create an account here and choose from the funds below: https://my.voya.com/voyasso/index.html?domain=lausd457b.voya.com#/login-pweb

Let us know what you want to do. Construct a diversified portfolio, either balance or target retirement funds or some of the other funds. 

Steve

 

All Fees and Costs LAUSD 457b.png

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Steve Looks like we crossed paths. I will let you handle this one as you are most familiar with this.

Tony

 

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Voya investments are Voya Fixed Plus III, Vanguard Inflation Protected, Vanguard Total Stock Market, Vanguard Emerging Markets, Vanguard Developed Markets, PIMCO All asset.total value $210K. I signed up for the Easy Choice Elections- Retired Conservative. Not sure what my other options are-Vanguard or Fidelity? Don’t know what a 457b is. LSW is Life Insurance of the Southwest. I have an annuity invested in Standard and Poors 500-Ending Index. Value $105K.

Thanks so much, guys, for the help. I’ve always chosen the most conservative approach as I don’t have a clue what I’m doing. Now, I’m just starting to get involved and I fear I’ve made some mistakes. 

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Kal,

Since you are retired, roll all your funds into an IRA account with a low cost fund family (Vanguard or Fidelity) and be done with this nonsense. The fellas here will help you with a low cost portfolio. Depending on the size of your pension, perhaps you don't need the annuity and can invest it elsewhere....good luck!!! Bob

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3 minutes ago, shirley said:

roll all your funds into an IRA account with a low cost fund family (Vanguard or Fidelity) and be done with this nonsense.

End of story. Good Advice. Should be clear of surrender charges I would think in annuity. I did what Shirley advises and I'm glad I did.

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Thank you, Bob. Yes, low-cost portfolio sounds great. Any ideas, guys? 

I love this forum...you guys are the best!

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Kal

I would suggest you move everything into one Vanguard Fund a Life Strategy Fund . Take a look at this option below. I pretty much did the same thing and own the fund I am advising. Each LifeStrategy Fund invests in four broadly diversified Vanguard funds The way an investment portfolio is divided among the broader asset classes of stocks, bonds, and short-term reserves. Also known as "asset mix." I am also retired. Its a fund of funds and it makes lots of sense and makes life very easy:  https://investor.vanguard.com/mutual-funds/lifestrategy/#/  There are four different Life Strategy Funds based on risk tolerance. You said you were a conservative investor so the best choice might be The LS Income Fund or The LS Conservative Growth Fund which are bond heavy. Or you could go LS moderate growth which is 60% stocks-40%-bonds . The LS Funds are low cost and the underlying funds are index funds. You never have to rebalance as the allocation never changes. The funds are totally diversified domestic and international as well as large cap, mid cap, small cap and bonds and other similar securities .

There are other options of course but I think you will like the concept of owning one fund for simplicity sake.

You will probably get other suggestions. This just happens to be mine.

I will be glad  to help you initiate the transfers as I have done the paperwork multiple times. 

Let us know what you decide.

Tony

 

Also Kal, Most of us here advising have made mistakes. I've mad a ton. Its easy to do with investments but we are here now because we know better now so don't be so hard on yourself. Tomorrow can be a new beginning.

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To simplify: These are the funds in the LS Funds:

  • Vanguard Total Stock Market Index Fund
  • Vanguard Total International Stock Index Fund, and
  • Vanguard Total Bond Market Index Fund.
  • Expense Ratio O.14 %

The allocations will be as follows: You would chose one of these funds:

  • LifeStrategy Growth Fund: 80% stocks, 20% bonds,
  • LifeStrategy Moderate Growth Fund : 60% stocks, 40% bonds,
  • LifeStrategy Conservative Growth Fund: 40% stocks, 60% bonds, and
  • LifeStrategy Income Fund : 20% stocks, 80% bonds

Each of the funds will allocate 70% of the stock portion of the portfolio to the Total Stock Market Index Fund and 30% to the Total International Stock Index Fund unless something changes.

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Hi Again,

I missed that you were retired, so ignore the 457b plan as I thought you were still working!

Just do what Bob said. I rolled all of my money to Vanguard. 

One more clarification: While you said that you are in a VOYA 403b, looks like to me that you are in CalSTRS Pension2, aren't you? VOYA also is the record keeper for that plan. It's a fine plan and I would keep it there for now because your real worry for the moment is to get your money out of LSW, ASAP!  After you take care of LSW, than work on rolling over the rest to Vanguard. 

We all made mistakes. And mistakes are learning new things too. Heck, I wrote a book about all of the massive mistakes I made throughout my investing life. But still retired early with a bundle of investments. 

 

 

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Thanks so much, everyone. I value your advice. Sayonara to LSW. Will go with Vanguard. They have a good reputation from what I’ve read on the forum. Will probably move everything to Vanguard. Simplicity is good. Again, thank you.

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