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arich

Question about episode #62 Security Benefit to NEA Direct

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I'm working with two out of district teacher friends who have terrible options through OMNI 403 TPA.  In your Nov Podcast you discussed using Security Benefit and NEA Direct.  Well they both have access to Security Benefit so can you please explain this process so I can get them started?

I am having both of them start Roth IRAs and one of them also has access to a 457 (NYSDCP) so she is starting that immediately.  One has a significant amount of cash saved while the other does not.

Thanks,

Anthony Rich

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24 minutes ago, arich said:

I'm working with two out of district teacher friends who have terrible options through OMNI 403 TPA.  In your Nov Podcast you discussed using Security Benefit and NEA Direct.  Well they both have access to Security Benefit so can you please explain this process so I can get them started?

I am having both of them start Roth IRAs and one of them also has access to a 457 (NYSDCP) so she is starting that immediately.  One has a significant amount of cash saved while the other does not.

Thanks,

Anthony Rich

Hi Anthony, Happy New year.

Ed wrote an article that should answer your question. https://educatorsfightingforfairness.wordpress.com/security-benefits-nea-directinvest/

I have never signed up for NEA direct, and it from what I have read by the discussions that it appears to be time-consuming and difficult because NEA and security benefit will not only NOT help you but deny that this option even exists! However, I have also read that once you get it the documentation in place, it's a terrific low-cost plan. Your friends may need assistance with the paperwork. 

Steve

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Ed's link that Steve supplied works for me. Here's another thread that discusses getting started with Security Benefit's Direct Invest:https://www.bogleheads.org/forum/viewtopic.php?f=1&t=260609

Most posters do not encounter the problems described in those threads. Signing up is usually just a matter of signing up online, confirming to SB that they (SB) are on the district's 403b provider list, and filling out the district's (OMNI'S?) salary reduction form. Some posters have had to make phone calls to SB to move things along.

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I think Steve got the link right.

This page documents the plan, this page documents specifically what I did to enroll, and this page documents the roadblocks people put in my way.

Let me know if you have any questions. One thing to consider is that by not contributing to an IRA (at least before maxing the 403b), you’ll more quickly hit the 50k mark, which is when SecurityBenefit waives the $35/year fee. This is a really small optimization, but it gives the added benefit of simplicity and may be worth exploring.

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I use the security benefit direct invest.  I found customer service to be no problem at all.  Handled everything perfectly.  If you ask a security benefit rep/"advisor" then I think you may get a blank stare of confusion about the direct invest.

Website is great too.  Set it up to rebalance automatically on my birthday as an annual celebration of low fees.  I am hoping to lose the password over the years so years as a way of staying the course :).

Just check out Ed's website it walks you through everything.

 

 

 

 

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