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Duncan

New Teacher Choosing a Provider

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Hi everyone, I am a new teacher at a school district in New York State. I have a 403b and 457b option. My only 457b option is New York State Deferred Compensation Plan. Below are the 403b options. I'm not sure what it means when it says "please contact provider directly for investment types". Can anyone give me some guidance on the best option from the list below? Thanks!

  (F) (FI) (VA) (RIA) (MF)  
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pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_PurpleDot.png pd_RedDot.png 1-866-634-5873
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pd_BlankDot.png pd_BlankDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-800-628-6673
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pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_PurpleDot.png pd_RedDot.png 1-800-822-9968
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pd_GreenDot.png pd_OrangeDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-845-297-0300
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pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_RedDot.png 1-800-423-4026
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pd_GreenDot.png pd_BlankDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-800-242-1421 ext. 4500
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MetLife  
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pd_GreenDot.png pd_OrangeDot.png pd_BlueDot.png pd_BlankDot.png pd_BlankDot.png 1-800-225-5695
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pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_BlankDot.png pd_RedDot.png 1-800-835-7305
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P&A Administrative Services, Inc  
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pd_NoDots.png 1-800-544-5445
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pd_BlankDot.png pd_BlankDot.png pd_BlueDot.png pd_BlankDot.png pd_RedDot.png 1-800-297-2012
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pd_GreenDot.png pd_OrangeDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-800-888-2461
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pd_GreenDot.png pd_OrangeDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-877-819-7455
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VALIC  
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pd_GreenDot.png pd_OrangeDot.png pd_BlueDot.png pd_PurpleDot.png pd_RedDot.png 1-800-584-6001

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I'm not sure what the abbreviations in the columns mean. I'm guessing VA = Variable Annuity and MF = Mutual Fund, but I'm really not sure. I'm guessing for the rows that say "Please contact provider for investment type" they're just telling you that they haven't documented exactly what that vendor offers. The good news for you is that you won't have to pay attention to those columns because we can steer you in the right direction.

I am not familiar with every vendor on the list, but I've ranked the top 5 vendors in florida and you've got access to 4 of the 5. This is how I rank your best options along with links to pages I wrote documenting the plans:

1a. Vanguard

1b. Fidelity

3. Security Benefit's NEA Direct Invest

4. Aspire

You've also got Lincoln, which may have a self directed plan in your area. So you can look into that too.

I'll let others comment on the quality of your state 457b plan. I think I remember reading good things about it, but I'm not 100% sure.

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Welcome Duncan.

Vanguard or Fidelity.  Ed's chart is accurate and good!!  This was an easy one.  Reminder: Don't let an insurance annuity salesman talk you out of Vanguard or Fidelity . They will soon be on the prowl looking for clients . Some do have a tendency to bad mouth Vanguard . Go with index funds only if you go with Fidelity as some of their funds are expensive to own. Once you decide between the two we can answer further questions you may have.

1. Total Stock Market Index

2.Total International Index

3. Total Bond Index

4. Possibly a fourth choice  might fit in  ( We can discuss later)

If you will share your age and years to retirement we can help with an appropriate allocation.

A Fidelity or Vanguard target fund might work too and that is the easiest way to proceed if you are less inclined to be hands on with your investments.

Let us know how we can help

Tony

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Then  you are young enough to go 100% stocks  maybe 70% Total Stock Market Index and 30% International or pick a tar get fund closest your retirement age. 

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Duncan,

Congratulations on a our new job! And also for starting investing in yourself so soon. I’m impressed that you are, and that you sought help here first. Big kudos to you!

Do you know who your third party administrator is for your district, if they use one? If you are in NY, and you have access to Vanguard and a Fidelity, I want your TPA instead of OMNI. They do not allow them.

You can retire sooner than age 60 if you max out both your 457 and 403b, and that’s no lie! Start saving the max if you are in the position to do so, and do not let lifestyle creep catch up to you. And listen to Choose FI and the Millionaire Educator. 

Good luck at school and investing!

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Hey Moe,

My third party provider is OMNI. Does that meant I cannot use Vanguard or Fidelity? The original post listed all my options.  For Fidelity and  Vanguard it says: "Please contact provider for investment type" . I wasn't exactly sure what that meant.

Thanks for taking the time to respond to my post.

-Duncan

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