Jump to content

All Activity

This stream auto-updates     

  1. Today
  2. Sorry to hear that. Let me make sure I understand. Your wife worked at District A and contributed to a 403b. She left District A for District B and rolled over the 403b to District B's 403b and now she is contributing new money to District B's 403b. Is that right? Let's start with new contributions made to District B's 403b...I'm 100% sure you're not going to be able to roll that over to an IRA until a qualifying event happens (probably quitting or being fired). The rolled over funds may be a bit more complicated. I'd be willing to bet that it will be treated no differently than the new contributions, but I don't know that for an absolute fact. My current 401k (very different from the 403b world) allows me to roll money into the 401k and then roll it back out whenever I want. I suppose it is conceivable that some 403bs may allow the same thing, but I'm skeptical. You'll have to reach out to the vendor and/or read all of the fine print to know for sure. It's too bad you missed the opportunity to rollover the 403b from District A to an IRA after quitting, that would have been allowable. Finally, do you have a better vendor available in District B? You can roll EVERYTHING over to the better vendor if one is available.
  3. There are actually two companies named Lincoln and one of them offers a Participant Directed Plan (PDP) in limited areas of the country. Search the forms to find out if it's Lincoln Investment that offers the PDP plan (I think it is) and figure out if you have access to it. This thread may be a good starting point, I'll leave the homework up to you. If not, then ASPire is the best option on the list. I documented their plan here. It isn't as good as Vanguard or Fidelity, but it is reasonable enough, definitely worth using. I was able to get Vanguard and Fidelity added to my district's list of approved vendors and I'm happy to help you do it. Somebody recently asked me for general advice on the Bogleheads site and this is what I had to say. Reach out to me if you need help or insight to get the job done. You can do it. The other thing to consider is that some states have state sponsored 457b plans (for example, NY has a pretty good one). It is possible that is the best option. Either way, you're in good shape with ASPire being the "floor" of your options.
  4. Is there a reason you're asking what district is the "gold standard" as opposed to what a "gold standard" would look like? I certainly haven't reviewed every district in the nation, so I can't award a "gold standard". However, I can tell you what I would do if I were given complete control over a district: I'd have exactly one vendor for the 403b and one vendor for the 457b...neither would have agents. That vendor would offered fixed allocation funds (Vanguard LifeStrategy), target date funds, total domestic stock fund, total international stock fund, and a total bond fund. That's it. Every employee would be automatically enrolled, they'd have a "reasonable" percentage of their salary allocated towards it, and they'd be invested in a target date fund based on their age. Every employee would be able to override this automatic enrollment. My Retirement Services department would offer information very similar to what I've posted on my Investing 101 page. That is the gold standard, but I'm not aware of any districts that have implemented it.
  5. EdLaFave

    NYAdmin

    ...also, if you have access to a 457b, then take advantage of that too. You can put 19k in a 403b and another 19k in a 457b.
  6. EdLaFave

    NYAdmin

    I'm not sure how to break the tie between Vanguard and Fidelity. I'll let you decide. Vanguard is documented here. Fidelity is documented here. There may be corner cases where that is sub-optimal, but generally that is the right decision because you have total control over an IRA, whereas a 403b is up to the whims of your employer. I don't understand the question. I assume you're asking what type of account you should move your 200k (from an old employer's 403b) to? I think you've already answered your own question. Vanguard or Fidelity, pick what feels good to you. It is very common to use the word "Roth" as if it fully describes an account. It does not. Tax advantaged accounts (401k, 403b, 457b, IRA, etc.) come in two variants: Roth and Traditional. Please ask questions if you don't understand that. I assume you're asking if half of your 403b contribution can be Traditional and half can be Roth...yes that is allowable. Is it advisable? Well, you haven't provided enough information to say...again ask questions if that's what you're getting at. IRAs have income contribution limits whereas other tax advantaged accounts (401k, 403b, 457b) do not. Some people make too much to directly contribute to a Roth IRA. However, Congress wrote the law in a fairly ridiculous way that allows those folks to contribute to a Roth IRA indirectly through something that has come to be known as a "backdoor Roth contribution". You haven't told us much about you, so I can't answer that really. I think you're going to want to read my Investing 101 page. Your main decision is to decide what percentage of your portfolio should be in bonds. I personally do that by recognizing that stocks can drop by 50% fairly quickly and take many years to recover...then I ask myself how much of my portfolio I can financially and emotionally afford to lose. If you would do something foolish like selling stocks during a crash if you lost 50% of your portfolio then guess what, you can't handle a 100% stock portfolio. If you can only handle losing 25% of your portfolio then you need a 50% stock and 50% bond portfolio. Once you know what stock/bond split is appropriate for you (something only you can answer, by the way). Then picking the funds is easy. If you want to save a little bit of cash in fees then you invest in what's known as the 3 Fund Portfolio...if you don't mind paying a little extra to not have to manage anything at all (3 fund portfolio takes hours per year to manage) then you can go with an all-in-one fund (fixed allocation or target date). In the Vanguard/Fidelity links I gave you, I point out the funds to use. In the Investing 101 link I gave you, I describe all of this in detail. Ask questions. ...all my comments are in regard to your entire portfolio as a whole. Each account does not have to be a stand-alone portfolio if you will. Ask questions. Very generally speaking, it doesn't matter what account type you have, my fund recommendations will be the same. However, bond funds in a taxable account can generate "large" tax bills (especially for somebody in a high tax bracket). I'd also like to put my highest performing assets in the account that is guaranteed to never be taxed (Roth accounts) so I'd avoid putting bonds in those accounts (Roth). So there are exceptions to the rules, but I can't give comprehensive input because you haven't laid out your entire financial situation. It seems like you've really grabbed onto the idea that some funds are "better" in one type of account than others, but as a general rule of thumb (with a few caveats) that isn't how this works. You build a fully diversified portfolio with rock bottom costs (in short that means, you buy total market index funds). Then you buy those funds in the accounts where they're the cheapest and/or most tax efficient. You view your portfolio as the summation of all of those accounts. Yes, you apparently will spend money on your kids college, but it doesn't come from a single fund...it comes from your portfolio as a whole. You may do some mental accounting to imagine it coming from a particular source, but that's essentially a fallacy (one lots and lots of people fall into).
  7. Yesterday
  8. I have my list from the district. Are any of these good options? I have tried to get Vanguard added, but no luck yet. Thanks for any comments.
  9. Asking for my own research for advocacy in my own district... what districts should I look at to see how it's done right?
  10. I have heard from a teacher in a small school district in San Bernadino county that has School's First (I think) for both the 403(b) and the 457(b) plans. He tried to form a committee to oversee the plans but was s down by the Superintendent and no interest among his colleagues. You are probably the only one who cares enough for you and your colleagues best interests that you reported this. The bigger question is who in the district or the union decided to have National Life Group with another 457 plan. LAUSD also has a policy that no 403b agents selling or talking with teachers on school grounds PERIOD! but the agents violate this all the time. A friend of mine called me and reported that they were presenting at district HEADQUARTERS! I was so angry I wrote an email to the board members about this. Where those agents found and disciplined? Of course not. It was I who was chastised in front of the committee by the chair of the committee for going over her head. I WAS CHASTISED while our teachers are still getting a raw deal and agents violated LAUSD policy. (No worries! I am a big boy). You are just getting wind of just how corrupted the entire defined contribution plans are with public k12 school districts with regard to all of the fees that our teachers are paying and they don't even know it. I have been at this for 25 years and I find it totally fascinating that what you are experiencing is still going on. Just think about this, there are thousands of teachers and administrators across the country who must know what we know, but our educational culture absolutely prevents them from speaking out. I am still not sure why people are so afraid. There are many publications over the years reporting how bad the situation is as you know. But none of the published media print articles made much of a dent yet. The WSJ will be coming out with 2 reports soon and she is looking for teachers to talk to as we speak. She wants to know the connection between the unions and their endorsements of products. The teacher I spoke of above just talked with this reporter. Steve
  11. Admin (Dan I'm assuming from Steve's post), The 457 with Empower is, or I thought, was exclusive. According to this article the 457 is now going to be offered by National Life Group as well, which seems odd as I thought most districts had only one 457 provider. The other issue is in Riverside we were supposed to have a blanket "no commissioned" agents/advisors on school grounds which this will be violating, I assume. I do not really understand how all this works, my other concern would be with regards to these National Life Group advisors writing policies for Empower, which sounds even more confusing. The whole point of using the FBC and Empower plan was to not have commissioned agents on the premises. If you can shed light, thank you. Anon
  12. Last week
  13. Hi Anon, Very happy you reported this. Takes a lot of courage, but you are not alone. Teachers everywhere in the country are getting a raw deal. As Dan said, only use Calstrs Pension2, it's a great plan offered by our pension plan. Stay the heck away from all of the rest! Steve
  14. Thank you for this. We will review and be in touch. Do you contribute to the 403(b) in Riverside? It's one of the worst vendor lists I have seen, but it does have CalSTRS Pension 2. I believe FBC is the exclusive 457(b) vendor in Riverside which is a bit shocking. All in all, Riverside seems to be failing its teachers.
  15. I am a simple individual in Riverside, CA that is familiar with the FBC/Empower plan in the districts. I was suggested to go to this website to inquire on this correspondence I received. As I wish to remain, anonymous due to my employer, we recently received this correspondence regarding changes in the 403b/457 platform in Riverside and San Diego. I am very confused and concerned as this is was just sent out on July 1, with no prior warning. I am attaching the correspondence for review and will post this on the 457 forum as well. If anyone can answer the questions below I would appreciated it. 1. Why are they sending 3 agents from Utah when the district already has agents from Empower? 2. Dan Puplava, the FBC director, is appointed with this "National Life Group" isn't that a conflict of interest? 3. How is a fixed annuity with surrender charges a 457, that can then have them waived (very concerning) 4. The individuals from Utah seem to be sent exclusively to the Riverside and San Diego areas, which is strange, no? 5. Who and what is Leafhouse Financial (managed money?) If anyone has any additional insights, I would appreciate it. Regards, Concerned Individual https://drive.google.com/open?id=1INPmmQcYC2uczJEUHvDfFN0y63sw6PgG https://drive.google.com/open?id=1MsqqVcJ6I9zK3pOslaBMcpMbyvmGYMtt FBC Connection Newsletter 072019.pdf FBC Letter to CBO_HR_SUPINT_072019.pdf
  16. NYAdmin

    NYAdmin

    I glad I just found this page and need to do some more reading. My question (scenerio); recently changed districts (New York) that provided me with OMNI choices that include: Vanguard Fiduciary Trust, Fidelity Management Trust Co., Roth- Axa Equitable, Roth-Fidelity Management, Roth-Mutual/Plan Member, Roth -Voya Financial (Nat) along with 20 other companies. From my brief reading of this site, it looks like Vanguard is the recommended company?? These are some of my initial questions and I would really appreciate any input. I can answer most education questions, but finance is not my area. I am about 10 years from retirement and have two kids yet to go to college with little to no savings for that, but would like to pay for as much college as I can. I have a little over 200 grand in Brighthouse Financial 403B from my previous job. It seems that similar recommendations are to roll that over into a traditional IRA and start a new 403B with my new company. I would like to contribute the max to my 403B. 1. What is the best thing to do with the 200+ Grand? 2. Which investment company is the most recommended for the new 403B? 3. Is it possible to split the max contribution into both Roth and 403B? I'm aiming for $19,000. (Combined married income is over 200 Grand, so I read somewhere I can't do that?) 4. If Vanguard is the preferred way, which funds are recommended with my profile? 5. If the Traditional IRA is recommend for the old money, does anyone have specific fund recommendations? 6. Any recommendations for college saving funds. HS Junior and 8th grader. I also have a very large monthly mortgage payment until about retirement age. I do understand that your input is your personal opinions and welcome all input. And I'm sure I may have more questions in the near future, any help is truly appreciated.
  17. One teacher emailed me and said one word about this two-day workshop: "Excellent"
  18. Pushing this up. Great Arich! This is not just "anyone." It's the Wall Street Journal and Anne and her colleague are interested in your story. Call Anne ASAP: (212) 416-3225 Keep up the fight! Steve
  19. Based on OCPS (FL), which I think is the same everywhere: AXA is documented here. Vanguard is documented here. If your state doesn’t have a great 457b then you’re also going to want to add a vendor for that too. Fidelity is the best, they’re documented here. I’m happy to help you reform your district’s plans. I’ve successfully done it in my district. You can navigate to my blog to read some of posts about it. I also answered a question about this over on a bogleheads thread. Reach out if you want help.
  20. You’re going to want to define terms. What is a straight average fee? Why do I care what the average participant fee is? Based on your post, I can’t tell, with any confidence, what you’d be paying at both vendors. Lincoln offers a cheap PDP plan in select areas. It is a good idea to list all available vendors because we might know something that you don’t. have you considered a 457b? Some states sponsor good plans even if your vendor list is bad.
  21. Jason, AXA does a great job of hiding charges, but here are the charges with Equivest (their most popular product). Administration charge: 2% or $30 Separate Account Charges: 1.20 % (Mortality & Expense charge 0.95% + other expenses 0.25%) Underlying Portfolio Operating Expenses: 1.03% (average fund expense) Personal Income Benefit Charge: 1% Withdrawal Charges: 5%
  22. No, I don't think it makes much difference. 5 bps difference is not a big deal. Bottom line is that the fees are high. Valic: .91% Lincoln total fee: .86% I would go with a diversification plan offered by Valic and the three fund portfolio of index funds.
  23. Anne the WSJ reporter informed me that she got a call, but she needs more K12 teachers who have been sold an annuity that was recommended or endorsed (or on some type of "approved by your union" list, etc) by any teachers union (local, state or national). It doesn't matter if you didn't know the product you were sold was endorsed by your union, chances are the agent who sold it to you had access to you and your colleagues because of the union endorsement. Please spread the word on all of your SM connections.
  24. Hi everyone, I'm starting a new job and having difficulty selecting a 403b company. I have narrowed it down to two options. 1) Valic: It has a straight average fee of 0.71 plus an asset fee of 0.18. The total average participant fee is 0.89 (as a percentage of assets). This plan includes funds FXAIX, (.02 ER), FSPSX (.05 ER), and DBMIX (.40ER) that I think will create a good three-fund portfolio of index funds. The target date funds are 0.97 ER. 2) Lincoln: It has a straight average fee of 0.86 with no other fees. The total average participant fee is 0.86 (as a percentage of assets). This plan includes funds with much higher ER. For example, NEIAX (.45 ER), and no index bond or international funds (they are actively managed). The target date funds are 0.85 ER. My question is: Does the additional asset fee from Valic compensate for having lower expense ratios on my prospective fund choices?
  25. We've had some vendors that have been removed. The people that already had accounts there could keep them, but no new participants were allowed.
  26. You can absolutely eliminate a vendor from the approved list. It has happened in many places. I’m not sure exactly how it happens. Are people forced to rollover their plan to a currently approved vendor? Are they allowed to keep the account but no longer contribute to it? Are they allowed to keep and contribute to the account, but no new accounts can be opened? Maybe the specifics are negotiated on a case by case basis, maybe each vendor has a policy, or maybe the school district has a policy. Let us know what you find. Be prepared to counter the argument that removing a bad vendor will be disruptive to employees and is thus a “bad” thing to do.
  27. Thank you for the feedback and I love the idea of moving new hires to Target Date Funds. I know this is common in private company 401Ks and hope it is just as easy in 403Bs. On to the million dollar question...what is the best route to move current employees out of their Axa and other insurance company annuities? Also, is it possible to eliminate Axa as an option when employees are already enrolled?
  28. Earlier
  29. I’ve had a chance to see statements for my family members’ 401ks. They’re all invested in something that follows steps 1 through 3 above. Without thinking they’re set up in something that I had to research myself. This is what people want. Unfortunately, I have doubts about this being set up in the 403b setting. It would require the business administrator to choose the sole provider. Is this possible? No doubt it’s ideal but can it be done legally?
  1. Load more activity
×
×
  • Create New...