Jump to content

Recommended Posts

Wow!  Thanks for all the great information.  Yes, my wife and I each have the same annuity. It was a 2 for 1 deal.  They are about 18K each which is equal to our contributions for 3 years.  Thankfully, it was only 3.  Good to know about Security Benefit's other option.  I had written them off due to the current situation.  Currently, our income is over the Trad. IRA level.  Perhaps I could do what Whyme is suggesting.  We are pretty close to the limit.  I will have to research that further.

Our Omni Choices are:

American Fidelity Assurance, Ameriprise Financial, Aspire Financial, Global Atlantic Financial Group, Great American Insurance, Horace Mann, National Life, Oppenheimer Shareholders, Security Benefit, Valic, Voya, and Waddel and Reed

Our 401K

PERSI Total Return Fund (TRF) Balanced1    (Default Option)     0.27%

U.S. TIPS Index Fund Bond2                                                0.05%
PERSI Short-Term Investment Portfolio Bond2           0.11%
U.S. Bond Market Index Fund Bond2                               0.05%
Dodge & Cox Income Fund* Bond2                                  0.43%
Calvert Balanced I Balanced1                                            0.70%
Vanguard Growth & Income Adm Large Cap             0.26%
U.S. Large Cap Equity Index Fund Large Cap             0.05%
U.S. Broad Market Equity Index Fund Large Cap      0.07%
U.S. Small/Mid Cap Equity Index Fund Mid Cap3      0.05%
T. Rowe Price Small-Cap Stock Small Cap4                   0.91%
U.S. REIT Index Fund Real Estate5                                   0.10%
International Equity Index Fund International6          0.07%
Emerging Markets Equity Index Fund International6,7     0.09%
Brandes International Equity I* International6            1.00%

Table 2: Recordkeeping Fees Table  Total Annual Charge
per Tier
$ 500,000.01 and up          $ 168.00
$ 200,000.01 $ 500,000.00       $ 144.00
$ 100,000.01 $ 200,000.00       $ 129.00
$ 50,000.01 $ 100,000.00          $ 117.00
$ 30,000.01 $ 50,000.00             $ 99.00
$ 10,000.01 $ 30,000.00             $ 72.00
$ 4,000.01 $ 10,000.00                $ 48.00
$ 2,000.01 $ 4,000.00                   $ 27.00
$ 1,000.01 $ 2,000.00                   $ 12.00
$ 100.01 $ 1,000.00                       $ 6.00
$ 0.01 $ 100.00                               $ -0

 

Share this post


Link to post
Share on other sites

Others here will know more about PERSI and the particular funds on offer, but at a glance that sure looks to be a superior option to anything on the 403b menu.  A portfolio of the US Broad Market Index, International Index and US Bond Index would be very low cost and a great way to build savings.  You might consider starting with few or no bonds, then easing into a larger proportion of bonds (which are less volatile but are also expected to yield less that stocks over long periods of time) as you get closer to retirement.

Seeing this list makes me mad at that sales guy who steered you away from this good 401k plan so that he could sell you annuities... it's hard to separate the victims from the perpetrators in that business.

Share this post


Link to post
Share on other sites
On 1/23/2019 at 5:25 PM, Bashdash said:

You mentioned Security Benefit.  Why not just transfer to their amazing "direct invest" plan.  Don't ask your advisor just call their customer service and they will help you.  I use it and love it.  Gives me access to cheap vanguard funds.

With aspire be careful to use the self direct option.  At my school if you don't you get set up with a Edward jones advisor!!!

 

I looked at the Direct invest information and found the prospectuses for the Vanguard funds.  They list both Investor shares and Admiral shares.  Do you know which ones are available with directinvest?  I am assuming that it is investor shares as they have a higher ER.

Share this post


Link to post
Share on other sites

Security Benefit’s NEA DirectInvest plan offers Vanguard Admiral shares, even when you don’t have the $3,000 minimum Admiral shares usually require.

I documented the plan here, which has links to source material from Security Benefit. 

Share this post


Link to post
Share on other sites
On 1/23/2019 at 10:16 PM, 403Learning said:

U.S. Bond Market Index Fund Bond2                               0.05%


U.S. Large Cap Equity Index Fund Large Cap             0.05%
U.S. Broad Market Equity Index Fund Large Cap      0.07%
U.S. Small/Mid Cap Equity Index Fund Mid Cap3      0.05%


International Equity Index Fund International6          0.07%
Emerging Markets Equity Index Fund International6,7     0.09%

These funds in your 401k would allow you to build a fully diversified portfolio for a very low price.

Share this post


Link to post
Share on other sites

In the PERSI 401k plan, the U.S. Large Cap Equity Index Fund uses the Russell 3000(R) Index which covers the total US stock market. So the U.S. Small/Mid Cap Equity Index Fund and U.S. Large Cap Equity Index Fund Large Cap are not needed to invest on a market capitalization basis.

In the 403b plan, if you click on Enroll --> on the NEA Direct Invest page, you will get to the Prospectuses and Profile Pages at the bottom of the Enrollment page. The Vanguard funds are all Admiral class funds, not Investor class. You only need the 3 funds that Ed used. Check out the link he provided.

Total US Stock Market Index

Total Int’l Stock Market Index

Intermediate-term Bond Index

http://www.nearetirementprogram.com/enrollment

403Learning, although you can contribute up to 19k (for 2019, 18.5k for 2018) to either the 401k or the 403b, the total contribution can’t exceed 19k. You could contribute 9.5k to one and 9.5k to the other, or any other combination that totals 19k. I don’t see any advantage in using the PERSI 401k at this time, and would just use the NEA Direct Invest 403b. You need the latter to hold your annuity 403b balance and you can start out making a contribution to it as well as the rollover. I’m guessing that you will not max out your employer accounts, whichever you choose to contribute to, at least not currently.

Have you read up on traditional vs Roth IRA’s? I think Ed linked his thoughts on this. You say you will never be able to max your employer plans, but you should have a goal of increasing your contribution if possible. You probably realize that contributing to a traditional IRA and the 403b (or 401k) reduces your taxable income and so lowers your income taxes. Whether you choose to contribute to a tIRA or a Roth IRA, either is great! They both have their advantages. I think the 403b should be traditional, not Roth, at least this early in you investing career.

Share this post


Link to post
Share on other sites

Hi and welcome to the board. You mentioned that this individual was a Certified Financial Planner. Can you confirm that was the case? Thanks. - Dan 

Share this post


Link to post
Share on other sites

Yes, he is a CFP, or at least that is what his information says.  It also says CRPC and CES.  I appreciate the advice I have gotten on this site.  I am confident that I will find a low-cost option to roll these accounts to.  

Share this post


Link to post
Share on other sites
9 hours ago, Admin said:

Hi and welcome to the board. You mentioned that this individual was a Certified Financial Planner. Can you confirm that was the case? Thanks. - Dan 

 

57 minutes ago, 403Learning said:

Yes, he is a CFP, or at least that is what his information says.  It also says CRPC and CES.  I appreciate the advice I have gotten on this site.  I am confident that I will find a low-cost option to roll these accounts to.  

Sorry for the double post but I just realized it is better to quote what I am replying to.

Share this post


Link to post
Share on other sites
17 hours ago, Admin said:

Hey 403Learning,

Glad site can be of use. We have a great discussion board community. Did you try checking his CFP credentials: https://www.cfp.net/utility/verify-an-individual-s-cfp-certification-and-background

 

Thanks, I looked it up.  He is certified and has no disciplinary history.  I sent in my Directinvest application today.  Hopefully, that goes through quickly so that I can get out of this annuity asap.

Share this post


Link to post
Share on other sites

403blearning

I'm glad you are taking such a quick corrective action and going to better options. Its unfortunate what that certified financial  theif  (CFT)did to you and your wife.  My best wishes for you both going forward.  If any issues come up with transfer please let us know.

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×