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  2. ariel, please start a new thread with this question, if you haven't seen the answer already. It's a good question.
  3. Great I will look at both, thank you!!
  4. You will find a number of recent threads discussing Aspire and the SB NEA Direct Invest on this forum. For instance: https://board.403bwise.com/topic/7531-ct-vendor-list-for-wife/
  5. The administration fee for Vanguard's K-12 403b plan is $5/month or $60/yr. There is no percentage fee on the balance. If you are interested in getting Vanguard added, it would be helpful if you joined the Facebook 403bwise group where there are a number of posters working to add Vanguard to their district's 403b list. Some have OMNI as their ATP. You can see the link to the group in the stickies at the top of this forum's list of threads.
  6. Okay, i will look into both options. If I get Vanguard added to the list then I could invest there without the extra 0.15% And $40/year that Asprire would add?
  7. Thanks for the list. You have 2 possible low-cost 403b vendors. Both options are custodial accounts, not annuity plans. Both options do not use local reps, but use the internet and phone. The easiest to use is Aspire which has good phone help. They allow you to use Vanguard's low-cost index funds. They add 0.15% to the funds' expense ratio, so the total fee would be about 0.20% to 0.25%. There is an administration fee of $40/yr which will cover the TPA fee to OMNI. The other option is Security Benefit's NEA Direct Invest. It is lower cost as the only fee is $35/yr if the account balance is less than 50k. It has 8 low-cost Vanguard index funds available. SB is known to have erratic phone service for NEA Direct Invest and it takes patience and probably persistence to get the account established. Once established posters report being satisfied with this option. It's possible that you could get Vanguard added to the 403b vendor list. OMNI P3 is allowing it to be added. You would need to contact Vanguard, OMNI and your district HR people.
  8. Thank you! That’s what I want to do. I attached my 403b options, there’s 3 screenss sorry I couldn’t fit it in one. Thanks again for your help.
  9. It is a verifiable fact that in the past people have seen better results with portfolios that disproportionately invest in small caps. Although as Bogle pointed out in one of his books, literally every investment scheme people preach is guaranteed to work well with prior data. If these schemes didn't backtest well, it would be quite difficult to sell something that's been a historic failure. The argument Bogle goes on to make (and I agree) is that the overperformance in particular asset classes or investment approaches is likely due to one of two things: Pure random chance and we're seeing a pattern where one doesn't exist (something that humans are notorious for, think of how many shapes you can see in clouds for example). A strategy that wasn't lucky, but worked in the past due to conditions that are no longer present or explainable.
  10. Lucy215, welcome to the forum! The 10% penalty your rep mentioned only applies if you take your money out of the 403b, that is cash it out. It does not apply is you transfer your balance to another 403b vendor that is on your district's vendor list. Can you copy and paste your district's 403b vendor list? You can get the list from the district's HR department or from the district's third party administrator (TPA). Sometimes just googling: "your district's name, 403b plan" will get you to the list.
  11. Although I feel this is splitting hairs and I have never heard anyone say they did not meet their financial goals because they did not have a tilt towards small cap value in their portfolio, I think there is some good academic research that makes it worth considering having a small tilt to a small cap value index fund. See studies of Fama and French. Fees however must be considered as always.
  12. I currently have a 403b with AXA and I’m looking to move my money to a different account/company because of the high fees. Does anyone have any advice on the best way to do this? I don’t want to take it out to use it, I just want to put it in a fund with lower fees. I stopped my contributions while I figure this out and my rep tells me there’s a 10% penalty and it’s subject to federal taxes if removed because I’m not 55 or retired (I’m 34). Thank you!
  13. Maybe I'm confused but it seems to me that they are just saying that vendors cannot be excluded if they qualify. In other words, districts cannot put the plans out for bids and control the number of vendors. I don't see anything about excluding Vanguard or Fidelity, but all I've read is your quote. I think CA and WA have such a state regulation currently. All thanks to the powerful insurance lobbies which have lots of money to give to the elected representatives.
  14. Offer your opinions all day long. If you find incorrect data or faulty logic in my posts then point it out and I'll happily concede and update my world view.
  15. I no longer need to offer my opinions on this site any further since you are now the resident expert.
  16. "Indeed, the Texas Legislature was so concerned about the well-being of salespeople in financial services last year that it removed the 2.75%-a-year maximum fee limit for 403(b) products offered to teachers. Now the sales folks can earn more for themselves on teachers’ savings". I mean why not, there are a lot of teachers in Texas, and while they all may not make big salaries, they do have steady monthly incomes, paid by state and local taxes so why not allow this to go on. It's giving back to the business community. (I am being cynical here) Texas is not the only states where Vanguard is being blackballed. I have to say though Fidelity's 403b list is an accident waiting to happen. You can hardly find the index funds hidden among all the other managed higher cost funds if are your average teacher with limited knowledge. That list looks designed to fool you too.
  17. By definition the total market index doesn't tilt toward anything. It invests based on market capitalization. If you tweak that by adding a small cap fund then you're adding a tilt rather than correcting a tilt. I can always find specific funds or asset classes that outpaced the total market index (diversification vs concentrated risk). Past performance doesn't predict future performance. This line of thinking is literally representative of the argument between index vs active. Still, your statement doesn't provide an accurate representation of the past. If you use morningstar to chart small cap vs the total market you'll find that there are relatively small periods of time where the small caps really outperformed. I think most of the time small caps were coming out tied or behind (but I stopped looking at historical data around the 90s), but thanks to that period of overperformance (depending on when you invested) you may have come out ahead. Although the total market has dominated the last decade, especially recently: 2019: 30.84% vs 27.35% 2018: -5.17% vs -9.33% 2017: 21.19% vs 16.24% 2016: 12.68% vs 18.26% 2015: 0.4% vs -3.68% 2014: 12.58% vs 7.54% We can cherry pick specific time segments when small caps won or lost relative to the total market index. Bogle never heard persuasive evidence for why small caps would predictably outperform in the future (i.e. the market currently undervaluing them and then correcting) and he discouraged people from tilting; so do I. However, the main point here is that if you're going to tilt then you need to know you will have years/decades where it doesn't go your way and if you can't stick with your plan for life then you're very likely to come up a loser. Again, it depends on what time frame you're looking at. By definition a diversified portfolio will always have winners and losers. This temptation to eliminate the losers is how you move away from diversification and start pumping money into assets that are at their peaks while pulling money out of assets at their lows. Although tempting, this is usually a disaster. We all have to accept that we can't predict the future and we see patterns where they don't exist. The point of my post was to highlight that the total market fund is not over or under invested in anything. If you build a portfolio that is over or under invested in something then you are placing a bet. You're saying that the market currently has something (small cap) valued at Z% and you think that the market is going to "correct" this "undervalued" asset and shift to Y%. That's a bet. As I said as long as somebody makes this bet in moderation, uses low cost index funds, and sticks with the strategy until death, then I think they'll basically be fine. This is particularly true when the bet is on something as broad as small cap companies as opposed to something as narrow as Snapchat. However, don't fool yourself into thinking your not making a bet or you're correcting an unbalanced total market fund.
  18. This is not market timing. This is diversification and buying and holding.It's simply balancing 'further diversifying" The Total Market Index which tilts more to larger companies. My index small cap fund has outpaced all my other index funds for two decades. Its added not subtracted.This method does work in theory and has been discussed in research. I'm not encouraging it. I mostly encourage target funds for most folks who post here. But even there many are not 3 fund portfolios. Frankly the worst performing class has been internationals for me over time. I could easily eliminate it and be fine even though it's often heavily promoted as essential. Ed you are an investment puritan to the extreme. Nothing wrong with that but nothing wrong with what I am doing either. If a newbie decided to add a small cap index component to your 3 fund portfolio, I seriously doubt their sky would fall.Should I start calling you John Bogle Jr. ? Incidentally John Bogle's real son runs a managed fund outfit LOL!!
  19. Keep us posted. I hope my cynicism is proven wrong.
  20. I can't imagine them putting this money in a instrument that charges surrender fees which would limit access further. We will have to see of OP returns to clarify.
  21. I can do that and I have done that. As you know many people don't care or don't listen. The representative that sponsored this bill has said it is to open the marketplace. So I want our politicians to answer if it is truly open.
  22. I'm confused, is somebody pointing to this bill and telling you the problem has been solved? Why can't you just point to the glaring problem in front of us today to prove there is a problem? We already know districts prevent employees from picking the vendor of their choice.
  23. I have my doubts as well, that is why I asked for clarification/interpretation. If they answer that the schools can keep their employees from investing with low fee providers like Fidelity and Vanguard, then that will also be ammunition that I can use to show teachers and our benefits committee that there is a problem.
  24. These are the same people who fought and defeated the fiduciary rule. Best of luck, fight the good fight. In my view, the only path forward is removal from office. Persuasion isn't an option because being "business friendly" is core to their beliefs. Pressure isn't an option because teachers don't really care. I'd love to be wrong.
  25. I am curious, but not curious enough to read the bill. Everything I know leads me to believe that some combination of the following will allow school districts to maintain their list of approved vendors: Exceptions in Subdivision 8. Exceptions in Subsection B. The definition of a qualified investment product. The registration process under Section 8A. It looks like there are lots of loopholes here. If you get to the bottom of the text, I'd love to read your conclusions.
  26. Darn, that was a typo. It is 2820. I'm aware of the fact that some of the republican politicians will do this, but to say they all will I think is wrong and I'm not giving up. The one good thing I think this bill may have done is force school districts to allow employees to invest with Fidelity or Vanguard. I'm no lawyer, but that is the way I read it. I'm not giving up pushing for this and spreading the word.
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