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Everything posted by Admin

  1. So my 12-year-old son, Ben, just made a short claymation video demonstrating the impact of fees on savings. Enjoy! http://403bwise.com/highered/content/61 - Dan Otter
  2. Great story, techteacher! Be it a 403(b) or 401(k) we all benefit when we push employers. Good for her (and you)! It also shows, that lack of employer knowledge about retirement plans is all too prevalent! - Dan
  3. Excellent progress. As you are seeing you will encounter so many who just don't get it. As John Bogle (yes, that John Bogle) wrote in a book for me: "Press on, regardless!" You can see an image of his words here (scroll to bottom): http://403bwise.com/wisecracks/entry/106
  4. Thanks for kind words and thanks for sharing your progress! Dan
  5. Thanks for kind words, techteacher. You and thousands of teachers stuck with bad choices are the reason we started 403bwise.com Can't wait to hear about your progress. Let us know if there is anything we can do to help. Dan
  6. Welcome TechTeacher, Here's another resource. Along with fiduciary advisor Scott Dauenhauer, CFP, we do the twice monthly Teach and Retire Rich podcast. Our latest episode (#32) is an interview with a 7th grade teacher from Illinois who was able to add Fidelity. You can listen directly from the page below or you can download, or you can subscribe via iTunes and get all of our pods. Best of luck and stay in touch. - Dan http://teachandretirerich.com/podcasts/
  7. Here's a story on the Target Date Fund approach to asset allocation. Many consider it a simple, almost automatic way to allocate that ensures the investor is in a relatively suitable allocation at all stages of their investing life. BTW: My wife and I both use this approach. Investment Tips & Tools: Target Date Approach to Asset Allocation Dan
  8. So glad we could help. But don't forget, you took the most important step: you began to educate yourself and advocate for yourself! Well done. We hope you stay in touch! Dan
  9. Welcome S. romero, It's good to critically look at all choices including index funds and well regarded firms like Fidelity, TIAA-CREF, T. Rowe Price and Vanguard. As the terrific board members have illustrated the preponderance of evidence supports a low cost, diversified index approach to investing. It has worked in my life (24 years largely using this approach). The LSW person is a sales person. S/he is paid to sell product. I highly doubt this person invests in the products they are recommending. You should ask this question. Ask to see their total portfolio as they may have a minor stake so s/he can say I too am an "investor." Before using any advisor we recommend you ask them these questions http://403bwise.com/k12/content/53 Ask them to sign this Fiduciary Pledge (the LSW salesperson is NOT a fiduciary which means they are not obligated to put your interests above theirs) http://403bwise.com/pdf/403bwise_advisor_fiduciary_pledge.pdf Here's how advisors are compensated http://403bwise.com/k12/content/66 We recommend you only explore using a CFP. These financial professionals MUST adhere to the fiduciary standard. Here's how you can check to see if the person you want to work with is a CFP http://www.cfp.net/utility/verify-an-individual-s-cfp-certification-and-background Good luck and stay in touch! Dan Otter
  10. I appreciate all the comments here. I suspect NEA offers this lower cost option as a hedge against future lawsuits. Quick history lesson: NEA was unsuccessfully sued for their high fee Security Benefits and Nationwide (I guess they are not on our side, Peyton) products. The plaintiffs argued that by endorsing these firms, NEA had assumed a fiduciary/sponsor role. The case was thrown out. It's also clear they are not going to market this or make it easy to sign up. Good for those who have persevered. NEA Lawsuit http://www.nytimes.com/2007/07/17/business/17suit.html?_r=0
  11. Anyone notice that House Republicans, led by Speaker Ryan, tried to override Obama's signature of this law? Thankfully, they failed to get 2/3 majority. In this case, Republicans clearly favored Wall Street over Main Street.
  12. Just posted this new story on 403(b)wise: Indexed Annuities: Understand the Sales Pitch
  13. Cleaned out my office and garage and found the following: 2 notes from John Bogle 1 from Elizabeth Warren My first mortgage statement (you won't believe my interest rate) Cleaning out my garage and office yielded some priceless findings. Bogle, Warren, >7% interest rates, oh, my!
  14. So glad the community could help MKohlhaas. Stay in touch!
  15. That chart hits home to this 51-year-old
  16. Generally, yes. All vendors Mass Mutual Valic Voya The key is to look for fees in two places: 1) Voya Voluntary TDA Fees and Charges Tab $20 annual Contract Fee M&E 1.25% (notice 11 year rolling surrender charge schedule) 2) Subaccounts Tab Voya Solution 2035 Portfolio Annual Administration Fee 1.12% M&E Fee TOTAL $35 in annual fees 2.37% in annual fees 11 year rolling surrender charge Think about that. A simple Target Date Fund costs more than 2.37% annually. Do you now appreciate why industry fights fiduciary rules? Make anyone who claims to be an "advisor" sign the 403(b)wise Fiduciary Pledge. - Dan Otter
  17. Fist off, welcome and thanks for helping your mom! Thanks to Tony for jumping in here. A couple of things to consider... If this is the product she is in https://www.403bcompare.com/Employee/Products/VariableAnnuity/Fees.aspx?pid=4149AXA assess rolling surrender changes. This means each new contribution is locked into a 6-year surrender charge jail. Her age may prevent her from having to pay these exit fees but I am not sure. If there is a penalty you could explore only transferring the money that has been in account longer than 6 years. You could then transfer money each year that is no longer subject to this charge. Either way, the first step is to cease contributions ASAP. Direct all new contributions to your new choice (Vanguard or CalSTRS Pension 2). I would consider calling the company (Vanguard or CalSTRS Pension 2) you want to move her money to first. Since they are the ones receiving the money, the will be more motivated than AXA to help you. I've passed your question on to a couple of advisors and hopefully they will post some thoughts on this. - Dan
  18. One of the best explanation of fee and non-fiduciary impact out there. I like to say that John Oliver is our best journalist.
  19. Welcome and thanks for you post. You may find this discussion on the NEA helpful: http://board.403bwise.com/index.php?showtopic=6184
  20. Admin

    The Tide Turns

    I read this when it first came out. It is certainly something I had never considered. Interesting statements/findings ...passive investing sends distorted signals about commodity prices.. ...essentially every new indexed dollar goes to the same places as previous dollars did. This “guarantees that the most valuable company stays the most valuable, and gets more valuable and keeps going up. ...ownership by index funds gives banks an incentive to behave more as if they have a common owner. The reduced sense of competition leads the banks to charge consumers more. ...index-fund ownership was having a similar effect in the airline industry, where nearly eighty per cent of all stocks are owned by a handful of investors. Elhauge argues that institutional investors with an emphasis on index funds, such as Vanguard and Fidelity, are playing an outsized role in the sector, and that their rapid adoption is accelerating ownership concentration, resulting in higher prices for travellers. Possible Solution ...suggests finding ways to index stocks that rely on some other factor besides sheer market capitalization (for example, using some measurement of a stock’s value, such as a price-to-earnings ratio). --- Dan
  21. We just posted our interview with Dustin Voss (the starter of this thread) about teaching financial literacy at an inner city Chicago school: Episode 29. We are lucky to have teachers like Dustin Dan
  22. Hi Lui, Thank you for the kind words. You are the reason this site exists. Glad to see you are making wise moves. Dan
  23. Hi Lui, I've reached out to some folks on this and we'll be posting some info soon. Here's their webpage. - Dan p.s. What district in Maryland do you work at?
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