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becker1685

Best 457 vendor?

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Hey fellow educators! I am a teacher in Clark County, NV (Las Vegas) and am trying to choose a 457 vendor. Below is the list of companies I am allowed to choose from. Does anyone have any info on them? I may just have to call all 17 of them and tell them what I'm looking for (low fees, similar fund to S&P 500 or total stock market USA). Any info would be greatly appreciated.

I also have access to the 403(b)'s with these same companies. I believe I will max the 457 first, then start a 403(b).

  • American Fidelity Assurance Co.
  • ASPire Financial Services
  • AXA Equitable Life Insurance Company
  • Fidelity Investments - Plan Number: 95033
  • Global Atlantic (issued by Commonwealth)
  • Great American-Annuity Investors Life
  • Horace Mann Insurance Company
  • Metropolitan Life Insurance Company
  • National Life Group
  • PlanMember Services
  • ReliaStar Life - Subsidiary of VOYA Financial
  • Security Benefit Group
  • The Legend Group - A Lincoln Investment Company
  • TIAA-CREF - Plan Number: 405776
  • VALIC
  • VOYA Financial
  • Waddell & Reed, Inc.
     

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Becker1685, welcome to the forum. You have several low-cost vendors worth using for a 457 plan (and a 403b). My first choice would be Fidelity. Their Fidelity Direct 403b charges only $24/yr for a custodial fee and has all the low-cost index funds you need:

Total Stock Market Index Premium (FSTVX), ER 0.02%

US Bond Index Premium (FSITX), 0.03%

International Index Premium, (FSIVX), ER 0.05%

If you want a all-in-one mutual fund that includes the above you can use one of their Freedom Index funds that have ERs of 0.14%. You would pick one with your retirement year, or better yet, on with the stock/bond ratio that you want. 

I got the above info from 403bcompare.com which is run by CalSTRS (the CA state pension organization. Fidelity’s Direct 403b plan is a generic plan offered in all the states. I believe that the same funds and fees are apply to their 457 plan. You should confirm that with Fidelity.

If you didn’t have Fidelity, I would use Security Benefit’s NEA Direct Invest which offers 3 low-cost Vanguard Index funds and charges $35/yr for account balances under 50k. Also usable is Aspire Self-directed, which offers Vanguard and Fidelity funds but adds 0.15% to each fund’s ER and charges $40/yr. Last choice would be PlanMember Direct adds 0.35% to Vanguard ERs.

So I believe Fidelity is clearly the best choice for either/both of the plans. 

https://www.403bcompare.com/products/68#/fees

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I should not have included Security Benefit as a good vendor for a 457 plan. SB's Direct Invest plan is for a 403b only. All of SB's plans other than Direct Invest are very expensive and are definitely not recommended. 

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On 9/19/2018 at 8:22 AM, becker1685 said:

Thank you so much, I will be taking action soon. I appreciate the info!

Great. let us know what happened. 

Steve

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