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tony

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  1. Here is a direct link to index funds on investopedia https://www.investopedia.com/terms/i/indexfund.asp
  2. Opps don't know how this happened.It just appeared and I don't know to get rid of it.
  3. Gosh this topic has got my attention because there seems to be so much contradictory information on this topic. The more I read t the more confusing it gets. I really think it all comes down what the employer allows. This chart might help. https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
  4. Krow, Are you sure? Is this rule specific to Valic? I'm reading a 403 b can be transferred to a 401 k if both are offered by the same employer. just curious
  5. nobody knows who you are . of course you don't want to put your full name with address or social security info on here. just basic information. we can then map things out for you.
  6. No, The funds that are actively managed have managers associated with the specific fund and not with Valic. Active managers pick and chose , buy and sell stocks or bonds they want in their fund based on research. An index fund is all the funds in a category so you own all funds in that category. An index fund has a manager too but he/she seeks to track the performance of a benchmark index like the 500 index so he doesn't pick individual stocks he might like.. Instead an index fund invests all of its assets in the stocks that make up the Index so you own all the stocks in that category. The thing to know is most index funds cost much less (expense ratio)and outperform most managed funds. Not necessarily on a day to day basis but over time. It's hard to explain all this. You should try going to investopedia.com and read all you can.
  7. Don't be so hard on yourself. You want to learn and you are learning. That makes you a winner!! I've made more mistakes than I have fingers LOL!! But I fixed my mistakes and I know better now. Your mistake can be fixed. Please trust our recommendations. The folks here are smart. You will be in a better place following our advice.
  8. Well Pimco would have been a better choice but it costs more and is a managed fund although it has done quite well for years. Regardless I would open a brokerage account with Charles Schwab and go with the funds we mentioned. You should be able to do that.Vanguard Index funds or Fidelity Index funds or even Schwab index funds. Total Bond index is the only bond fund you need. No to the annuity. Stay as far away as you can. Do the portfolio we recommended way above on this trend or just pick one fund, a target fund closest to you anticipated year of retirement. A target fund will be managed for you and have the same index funds we talk about here. I recommend a Vanguard target fund. Did you get that? you pick that one fund and the complexity is over for you and you can focus on saving saving saving!!! And you will come out smelling like a rose in 25 years if you keep investing it and not mess with it.
  9. I think it would be smart to consolidate these plans into your lowest cost option if you can and to avoid complexity and mistakes. Also, dump the annuity. It might not be a good deal as most usually aren't. If she separated from service from any previous place of employment and she accumulated those assets there, she can transfer those particular assets to an IRA or if she is 59.5 years of age . Seems like she has got a lot going on here that is confusing. I don't think you can rollover a 403b plan to a 457b plan unless it's a government plan. Rollovers are not permitted from a 403b plan to a 457b plan of a non profit employer. So you may be stuck there. But ask directly anyway as there may be exceptions. I think however you can under certain circumstances move the Valic 403b to a 401k if both are offered by your employer. You certainly should be able to move from one 403b plan to another. Employers may be able to limit you to changing contributions amounts to once a year if it's stated in the plan document, however in my personal situation I could make changes any time I wanted to. Do you have access to online tools that allow you to make changes yourself directly? 401(a) plans are similar to 403b plans I believe but are less known and are so customizable, the terms and conditions are dictated by the sponsoring employer, rather than by specific IRS guidelines. You need to call the companies you want to transfer your money to see if they will except the exchange and see if all you want to do is possible. DISCLAIMER I'm no expert here and I don't know the rules your employers past and present may have imposed, I'm just trying to help Maybe others can give you better guidance, plus I know very little about 401a plans. I'm sure you can go to the IRS website and your wife's employer document to see what you can and cannot do. Always look for details in writing and don't trust the spoken word because many folks may be uninformed of the actual facts. Tony
  10. As is often the case, sometimes the deeper we get into specific details the more complex things can get for the OP. That's why I love target date funds for most folks and he could do that with his brokerage account and everything will be done for him and he can concentrate on saving!!
  11. GA Teacher Not trying to gang up on you but: I'm no expert on bonds (disclaimer) BUT What I don't like about your high yield bond is that it's not a diversified bond fund. It owns the riskiest of bonds. You don't own any others short term and intermediate term bonds.. I think you would be better served going with a more diversified offering. Keep in mind the basic index fund portfolio we recommended to you early on included a total bond market index fund. I would utilize your brokerage account to get that type of bond fund. I would also dump all those managed funds. Like Ed said, Bonds should be there to counterbalance your stock funds to smooth out your portfolio volatility. By including the riskiest bonds category that act like stocks more often than not, you are not tempering your portfolio or diversifying it with its inclusion . I believe they are often called junk bonds because of their higher possibility of default. You would be better served getting a diversified bond fund. I don't know if you have to wait a certain amount of time now to make changes but i would imagine you can get rid of that portfolio and go the brokerage route and get index funds.
  12. Someone in the comments section wrote this. I kind of agree but I also agree with the article. Hmm. "The problem is, the more money one has, the easier it becomes for them to make it grow at a faster rate. There are rich people out there, no fault of there own, who say, "I'm not trying to become richer, but I do, and I cannot help it." Why? Rich people do not always live rich. And their money compounds if they have it invested in businesses, via common stock. When businesses make money, the investor becomes wealthier. If the business they are invested in declines in business, then so will the value of the money the investor invested in the business. The knife cuts both ways. I don't consider myself rich. Although I am technically a millionaire, a million dollars is not as much money as it once was. At my peak, before the virus, my net worth reached $2.8M. On 23 March 2020 my net worth was $1.9M. On paper I lost $900K. I didn't do anything. I know by doing nothing when the market corrects or crashes is better than panicking and selling, realizing a loss. I just held on. My stocks recovered about 2/3rds bringing my net worth to around $2.5M today. Do I want to become wealthier? Sure, but not for me. For my kids and grand kids. Am I hurting anyone if I become wealthier? I do not see how? Instead, I believe by loaning my money to big business in exchange for dividend cash and stock appreciation, I am helping Americans get and keep good paying jobs. In return, the company shares their profits with me in the form of a cash dividend every 3-months. But I do not keep that cash dividend for myself. Instead, I give it right back to the company, such as Nike, or Apple, or Johnson & Johnson, buying more dividend paying shares of stock, compounding my dividend cash because every new share starts paying me too. Recently, a competitive phenomenon happened. Schwab stopped charging commissions. So did TD Ameritrade. Today anyone can buy 1 share of stock or a million shares of stock for the price of the stock only; no commission. So anybody, for free, can open an account at a brokerage firm that charges no commission. They can deposit whatever amount of money the wish, then buy whatever shares of stock their money can afford. And they too can sit back allowing their money to work in 3M, or Pepsi-Cola, Stanley Black & Decker or Proctor & Gamble or Costco. The downside is, businesses can go out of business. If you buy McDonald's and they go out of business, you could lose all your money. When I say, I am afraid McDonald's might go out of business soon, do you believe me? If you say no, then you have enough courage to be an investor too. Does this make you or I evil if we give our money to business, taking personal risk, with a chance of being rewarded with greater value or chances of losing some or all the value of the money we invested? I did something to become relatively wealthy. I worked hard and saved my money. I lived frugally eating Ramen noodles, cracked eggs, oatmeal and spaghetti in my teen to early 20s youth. I borrowed money while painting homes to pay for college. I endured college, working hard to get good grades proving to a future employer I could learn. The military approached me and offered me an opportunity to work for them for 20-years to be rewarded with a 50% pay retirement. I thought that was a good deal. So I joined the military, writing a blank check on my life, and worked as hard as I could to earn promotions and work my way up to a better income. Then I retired and got my 50% pay retirement. Now here I am. An evil one to some who say I should not have what I have. They say I was lucky. They suggest I must have done something nefarious in my life, stepping on the less fortunate, taking food from their mouths, to get where I am. I started with nothing and some debt. My choices in life, recognizing opportunity when opportunity came along, made all the difference. I worked hard, sometimes 12-hours or more per day week days and weekends. If the military called me at 3am to be at work by 4am, I jumped from my bed and reported to work. I did not dare complain. I could drive a $100,000 Mercedes today. Instead I drive a 2006 Nissan Frontier with dents in the front and rear passenger door. I don't want decadence. I will give it all away to my kids and grand kids, who some will consider evil too one day".
  13. America, we have a problem. A problem? Which one: COVID-19? Washington? Well, to me there’s really just one issue that supersedes the rest. Simply put: Money isn’t distributed equally enough in America anymore. https://finance.yahoo.com/news/america-we-have-a-problem-115714416.html
  14. Hey Guys. I'm not going to add much here because Ed is 100% correct in his comments. GA teacher, I do not like your choices outside of VINNX. HUGE MISTAKE. You will evolve over time into understanding what we here are trying to tell you as it took me a while too to "get it" . i made the same mistakes after being influenced disingenuously (SP?) by the current system and wondered why my accounts never grew. It was the fees!! I understand you have limited choices and obstacles presented but there are ways around it as Ed mentions.
  15. I thought this was appropriate to post considering our circumstances. It’s 2022, and the coronavirus has at long last been defeated. After a miserable year-and-a-half, alternating between lockdowns and new outbreaks, life can finally begin returning to normal. But it will not be the old normal. It will be a new world, with a reshaped economy, much as war and depression reordered life for previous generations. https://www.nytimes.com/2020/07/10/opinion/sunday/coronavirus-economy-two-years.html?utm_source=pocket&utm_medium=email&utm_campaign=pockethits
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