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  2. She could literally be living a middle class lifestyle for the rest of her life, just in what she is paying in annuity fees! She probably would have been worth over two million without those fees as well. Think People!!
  3. Yes MNGopher thanks for adding that about SS. I believe the right annuity for the right person in certain circumstances might be an option. But for teachers it's just most logical to invest in low cost index funds outside an annuity. That doesn't stop the industry from selling them inappropriately to teachers. I am irritated that superintendents and school boards don't understand the ridiculousness of allowing these peddlers of steaming piles of BS to continue taking advantage of their employees.
  4. Thanks for the link. Not only is your teacher pension an annuity, but for all practical purposes so is Social Security. And teachers in all but about 15 states also pay into social security. There is really no reason to invest in an annuity during the accumulation phase of your life, and most certainly not if you have a pension and/or Social Security.
  5. The example in this article, "Frazzled Francine"" was paying $44,000 (4.4%) in fees on her 1 million dollar annuity every year! This is more than a standard safe withdrawal rate. She could literally be living a middle class lifestyle for the rest of her life, just in what she is paying in annuity fees!
  6. Today
  7. Hi everyone! My name is Paige. I'm a 25 (almost 26 in a week) year old teacher in Massachusetts. I am about to be entering my 4th year of teaching. I signed up for a 403b, and life and disability insurance all through mass mutual. I am ashamed to admit that it was all so confusing to me, but I knew it was something I needed. I signed up for it all going in kind of blind. Wanting to take more control of my finances, I found this podcast/website. I'm still very confused but have a feeling I do not have a good product. I'm thinking I'm going to need to sit down with a fee only financial advisor... but could someone please give me some insight? I'm on my online portal and it's still all so confusing!! Here are some screen ss that I took from my dashboard. I'm having a hard time finding the fees..... but it looks like my surrender is 9 years, which does not sound good! I found this through Mass Mutual, but don't fully understand. https://www.massmutual.com/efiles/ann/pdfs/an6102.pdf Any guide in the right direction, any insight, and any tips on what I should do next would be greatly appreciated. I also found this on my district's website that mentions and recommends the state’s Deferred Compensation or 457 Program. Also, any thoughts on whether or not I should keep the "whole life legacy" insurance and the disability insurance. Thank you everyone!
  8. Chocklita Did you receive monthly transaction notices? Did you and your employer both contribute to this 403b ?. I'm sorry but I am still struggling to understand your situation. The employer can stop a plan it offers going forward and they should have notified you of any changes going forward in writing. But the money that was in the account can't just disappear. It should be yours. You must have some paperwork/statements somewhere that shows the progress of this account over the years. Any year end statements? Also how much money do you think was in this account and how much actually was your earned money if any? Please try and fully explain your situation . For now on you need to save your documents and check them for accuracy every month in any new plan you may enroll in and file it. You can/should also check your accounts online. Tony
  9. Sorry for the long response time. I can't do anything until I receive a transaction history from Principal (carrier of the 403B), which takes weeks. Let me provide more details, I apologize now for using any incorrect terminology as this is not my field and I am learning. After 5 years working for my charter school in NYC you become "fully vested" (Yes, Ed, employer contribution), so I decided to check my retirement account at Principal. (Full disclosure, hadn't checked it in 5 years. (And side note I am paying dearly for my ignorance and many things I did not fully pay attention to and won't do again, lesson learned). Anyway, I just trusted this money was there, etc. So I was shocked to find out that there is/was 0.00 dollars in this account. I'm like, what the hell? So I call principal and they tell me that I was enrolled at 4% in Sept 2014 and my employer changed my contributions from 4% to 0% in Aug 2015. I was never notified, knew nothing about it and would guess that this is some clerical error from someone who had been doing their job a whole of 2 months. Bottom line, I'm thinking I have retirement contribution. And in traditional Charter school style turnover the people in HR now aren't the ones from 5 years ago. They are telling me that I never enrolled. Principal says otherwise and I've been waiting on this document for a minute. As of Sept 1 I will also no longer be an employee, so they aren't going to get an opportunity to make it right by allowing me on the 403B at this point. My questions: is this legal, is it worth pursuing? I know I'm out what I should have put in but I at the very least want to file a complaint (with who?) and the most maybe recover the 4% my employer should have been contributing to this account. What should I do now? Thanks for your help and advice!
  10. I was stunned. My family was watching a rerun of the “Teachers Tournament” on “Jeopardy!” I got excited because I knew the correct response to this question: “This proposed federal rule would have required all retirement planning advisers to act in their clients’ best interests.” But before I could get my answer out, my 21-year-old son shouted, “What is the fiduciary rule?” https://beta.washingtonpost.com/business/get-there/millennials--its-not-too-early-for-you-to-start-investing-now/2019/08/15/c76be55a-bf69-11e9-9b73-fd3c65ef8f9c_story.html?noredirect=on
  11. This might help you understand fees in annuities. Fees are more than you might think and often well hidden. https://www.forbes.com/sites/davidrae/2019/07/01/variable-annuity-fees/#28527fea7de2 As you read this keep in mind your teacher pension is in itself an annuity so it might not be wise do buy annuities and instead invest in low cost index funds outside an annuity.
  12. Here is a lengthy article on escaping annuities with examples. Please feel free to comment. Fairly comprehensive info. https://www.forbes.com/sites/davidrae/2019/07/25/what-is-the-best-way-to-escape-a-dreadful-annuity/#6159d9c932e2 As you read this keep in mind your teacher pension is in itself an annuity so it might not be wise do buy annuities and instead invest in low cost index funds outside an annuity.
  13. Yesterday
  14. There is still a Fishy Smell in the Teacher's Lounge AXA Got Invited to New Teacher Orientation for San Francisco Unified School District (scroll down to just left of Agenda). This is how one of our profiled teachers, Annie, got tangled up with AXA.
  15. Last week
  16. Hi, I am new here, so I hope I am posting correctly. Mass Mutual was the only 457b option for my Oregon school district. I couldn't actually find accurate fees and expenses so I made an appointment drove 30 minutes to get them. Worth it. High fees and multiple fees Mass mutual hidden away. I am pushing my district to adopt low fee OGSP - Oregon Growth Saving plan. It seems like 457 fees associated with OSGP are much lower than the 457 fees with the current and only Woodburn 457 provider, Mass Mutual. ( there seem to be MANY Mass Mutual fees and expenses in the 30 page agreement. I was able to get a a summary from Wayne Muller which I have attached.) MASS Mutual - example Large Cap Am Century Ultra Invest Mgmt Fee 0.99% 12b-1 Fee 0 Other Expense .02 Total Annual Underlying F.O.E fee = 0.97% Mortality, Expense and Admin Charge= 1.25% fee to CUSO Wayne Muller .35% Total Fees and Charges 2.22% 1.98% to 2.65% a year for Mass Mutual 457 through Wayne Muller at Salem MAPs CUSO vs OSGP through Voya fees Total admin fee = 0.12% Investment fees Stock index 0.040%, to 0.53% total fees and charges OSGP = 0.16
  17. Teachers Retirement Plan “Upon hire, employees classified ET begin automatically contributing eight (8) percent (if hired on or after November 1, 1996) or seven (7) percent (if hired prior to November 1, 1996) of their salary on a biweekly basis into this retirement plan. . Employees who are not classified ET do not contribute to this plan. District of Columbia Teachers’ Retirement Plan Summary Plan Description (SPD).....In order to rollover or withdraw funds from this account, the employee must be separated from DC Government.” You do not control how this money is invested unless you separate from service. Through the 403b and 457, you may invest additional funds that you’re able to invest into various funds. Also, I wasn’t aware of a 5% contribution to a 457; this has not been my experience with DCPS.
  18. Yes, the 457 is great; there several low cost investment options.
  19. likepurplereign, Welcome to the board. It's my understanding that DCPS teachers have a pretty good 457(b).
  20. Purple Reign, Do you get a pension? Is the automatic 8% in 403 and 5% in 457 in place of a pension?
  21. Well, congratulations on your pay raise and new job! Once you identify the better option, can you direct all 13% of it there? Keep us posted and good luck.
  22. I'm a new DCPS employee and so glad I came across this thread - I'm coming from a non-profit (where I made less but...) that was all Vanguard, TIAA-CREF, and TROWE-Price so this selection is pretty depressing. The thing about DC is that 8% goes to a 403B pretty much automatically and another 5% goes to a 457 (unless you opt out). So, I have to figure out the least bad option for my 8%... It's forced savings basically.
  23. Earlier
  24. I have yet to see a California vendor list that doesn't include Pension 2.
  25. Love having you join us, Steve. Tim reports that our talk was very well received. - Dan
  26. I too have very mixed feelings about Facebook. In fact I just watched this: The Great Hack and found it chilling. I will say that FB Groups seems to be the best way to utilize this platform. I echo Steve's point: we have much more action on the FB Group page that on the DB. - Dan
  27. Folks Tony Isola deserves an award for journalistic excellence for that title. I'm still laughing but also realize it's no joke. Actually its quite sad.
  28. Never heard of "advantages" of annuities claimed by the sales force? My goodness, you need to listen to the agents. The agents are very good at telling those horror stories about the big bad stock market and how you can lose all of your money overnight! So, an annuity protects your assets because you never lose money in a down market, NEVER! (they never mention that insurance companies can go bankrupt too and the fact that the returns in an annuity are so pathetic that they never will keep up with the pace of inflation. SOOO, you lose money to inflation and taxes over time). Another advantage claimed by the sales force is that the agent will hold your hand throughout (they fail to mention that once the ink is dry by the teacher's signature on that terrible contract, the salesperson is gone!) And lastly, the insurance guarantees that you will get your principal back. WOW! Isn't that neat? The agent doesn't tell you that this is rarely if ever used. Yet those absolutely hideous and completely useless M&E charges are up to 1.25% year after year on top of the other expenses.
  29. Pitiful. I was a kid when my grandmother used to question the validity of studies. I thought she was being a pessimist - and old - (sigh) and reply something like “Oh Nana, why would they publish false or misleading results?” Nana was my most memorable teacher. Thanks for sharing Tony. And Dan, holy cow, it’s great to see you around everywhere these days! Run, Forest, Run!
  30. I was very happy to be there and talk with some of the teachers. Two were from Wisconsin! BTW, one said that "investing is not as complicated as I thought!" That is a huge personal development for anybody interested in financial literacy either for themselves or teaching their students.
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