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Everything posted by tony

  1. 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.
  2. tony


    I think Ed gave you plenty of information that is highly accurate and correct I think you should take a very close look at Vanguard Life Strategy Funds. They come in different allocations and are self managed so you can let them sit and you won't have to worry about rebalancing or diversification. I'm in one of them myself. They will cost you slightly more since they require extra work on the part of Vanguard to keep things balanced but they pretty much have the same index funds you would own if you set up a 3-4 fund index fund portfolio. Ed is a do it your-self kind of guy but he has good knowledge and is comfortable with what he is doing. If you feel the least bit timid about handling details by your self than its hard to beat the Life Strategy funds at Vanguard. https://investor.vanguard.com/mutual-funds/lifestrategy/#/ Tony
  3. yeah I'm on the fence about joining facebook actually.
  4. gotta love this article's title https://tonyisola.com/2019/08/two-steaming-piles-of-403b-s/
  5. that's a funny analogy MN Gopher!!
  6. "Forget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack.That is the message in the latest data from Dalbar, a Massachusetts research firm that has been studying the behavior of mutual fund investors for 25 years". I found it interesting that he stated annuities because of surrender charges helps an investor stay put and may help him/her do better long term...interesting, I never thought of surrender charges being an advantage. https://www.nytimes.com/2019/07/26/your-money/stock-bond-investing.html?rref=collection%2Ftimestopic%2FMutual Funds&action=click&contentCollection=timestopics&region=&module=stream_unit&version=latest&contentPlacement=1&pgtype=collection
  7. https://www.nytimes.com/2019/08/02/business/social-security-questions.html?nl=todaysheadlines&emc=edit_th_190804?campaign_id=2&instance_id=11318&segment_id=15860&user_id=1d567eabb2db6b59e2801a5177069678&regi_id=200074250804
  8. Opinion on Vanguard . I agree with his positives and his few negatives. I wished he had mentioned the 403b move to Newport. https://humbledollar.com/2019/08/whither-vanguard/
  9. Some good info . https://assetbuilder.com/knowledge-center/articles/how-investors-can-win-with-target-retirement-funds
  10. tony

    My vendor list

    I want to emphasize with Aspire you can tap into pretty much any fund you want and won't need a salesperson, so your over all costs will be cheaper. I think Aspire is a doable option and is far from the maddening crowd of annuity products. How do you self-direct? just write it on the application or call them.
  11. Great user name!!! I second that. very appropriate actually
  12. Another article along these lines https://www.marketwatch.com/story/this-flight-attendant-has-enough-money-saved-to-retire-at-44-but-she-wants-to-keep-working-2019-07-10?siteid=yhoof2&yptr=yahoo
  13. It is hard to imagine but trust me people do it all the time and many don't have a reserve . If you are smart with your money it can be done. I've known a few people from my past who would/could support a family of on that income. My dad was one of them. Even paid for colleges.
  14. I would really push this for the average employee. They are usually too lazy to learn about retirement issues and that's why annuity salesman get their way so often with them. So, maybe, if you start them off automatically in a decent plan then MAYBE they will be too lazy to change it over to something worse. Also this move is kind of an endorsement by the district that its O.K to invest there. This may or may not make a difference. Much depends on the employee's financial acumen. I would instead hold multiple in-services on financial literacy and investing for retirement . Certainly these would have to be done without the help of the insurance industry. . There is power in numbers so the more employees you can get to make some noise the better the chances of instituting real change. This will require that the employees having some real financial understanding.
  15. In a society driven by profits it is very difficult these days to find a workplace that offers a work'-life balance. My job never caused me to throw up but I became plenty aggravated at times mostly toward the end of my career. Seems like since the last recession things started to really change for the worst in Education. I can only imagine from listening to my son and brother just how difficult it must be now to work in the private-profit sector . On second thought though, I realize now that our original 403b vendor list as I found it in my school district upon initial employment should have put me in a deep coma. Instead I did the zombie walk straight into the arms of an annuity shark. I am so much younger than that now!!
  16. https://www.marketwatch.com/story/this-couple-retired-at-31-with-1-million-heres-exactly-how-much-they-earned-spent-and-saved-to-do-it-2019-07-10?siteid=yhoof2&yptr=yahoo Excerpt : You won’t find Kristy Shen, 36, trapped in a cubicle anymore. In fact, these days, the former Toronto-based computer engineer — who once was so stressed by her job she’d throw up regularly — can be found traipsing the world with her husband, Bryce Leung, 37. They’re now “fully nomadic” with no home base, having hit up Thailand, where they got beachside massages; Greece, where they island hopped and dined on fresh fish drizzled in olive oil; and Amsterdam, where they glided along the cobblestone streets on bikes.
  17. Usually I see the administrative fee separately stated from the expense ratio of the fund. Looks like your wife's funds show them combined. Not necessarily a bad thing. In fact it adds to clarity. I am wondering though if this truly would be the total cost of owning the fund or if there may be any other fees involved. Dig deeper to make sure. It is not uncommon to see an administration fee of some sort added in 403b plans. The goal should always be to get the best funds at the lowest possible cost considering all costs and fees. Vanguard works out well because they are very low cost so that even with additional fees added by the 403b plan you still come out pretty good.
  18. My first question is by any chance is there a State 457b plan available to her? You would be smart to check that out. Voya is your best choice but only in a limited way.You can buy Vanguard Total Stock Market Index at a good typical cost and apparently no administrative fee. That one fund might be all you need for now if your wife is just starting out and is young. Your 403b choices are not Ideal. These seem not to be annuity products which is a good thing but you are still paying more than you should be for the funds. Mass Mutual have Vanguard funds. Voya actually does not show an administrative fee but the fund choices have high expense ratios except Total Stock Market. You could simply buy Vanguard Total Stock Market index as mentioned earlier. Or I would go with either a Blackrock life path target fund (very easy)or create a portfolio from the Vanguard funds you have in Mass Mutual .Something like this: Vanguard 500 Index Vanguard Total Bond Vanguard International Vanguard Small Cap Index Or you could go TD Ameritrade and buy funds in a self directed account. In that case I would use VOYA (fees may vary) Regardless you need to dig deeper to get all the fees they may charge. It may be more than the administrative fee plus the expense ratio of the underlying funds. These companies are sneaky and don't always put all their fees front and center. Tony P.S. Maybe an IRA directly with Vanguard outside a 403b might be a choice depending on how much she plans on saving. It certainly would be cheaper.
  19. tony

    403b Loans

    Here is some additional Info. I do know my brother wanted to borrow against his 401k and he backed out as the terms where much more strict than say a regular bank loan. So beware. They wanted hefty monthly paybacks plus fees http://genxfinance.com/403b-loan/
  20. JD, Are you out there? I hope your situation works out for you. Please let us know what you find out and what you plan to do to resolve your issue. Sharing that information here might help others. Hope to hear from you Tony
  21. It's not a uniform procedure. It will vary by plan in 403b land but you might be asked to pay it off immediately or you may be paying tax penalties and regular taxes on the amount if not resolved within 30-60-90 days.. If you are stuck in a bad situation that can't be remedied to your satisfaction I would take a low interest loan at a bank (home equity might work if you own a home)and pay off the 403b loan and then pay off the bank loan as you can. Paying the interest on a regular bank loan might be cheaper than the taxable mess you might be in. Plus with a home equity you can deduct taxes. Your good credit rating would make it easy to get a loan. Don't even think of using a credit card. I would explain your situation to a bank you do business with. First though read through your plan papers as Ed suggests. The first thing I tell folks is don't ever use your retirement account as a bank. Its a bad idea. Some folks thing borrowing from yourself is smart but often its better just to get a regular low interest loan to pay off debts or better yet try not to put yourself in the position to have to borrow money. A regular loan from a bank is more straightforward and less complicated. Dan has this topic covered here close to what I am saying but much more intelligently than I could ever hope to write https://403bwise.com/healthcare/story/279
  22. My return was 12.77 % YTD with at least 35% bonds. Total market Index was my highest performer. We are having a great stretch of returns. I have to wonder how it all will end.
  23. There are so many easy concepts folks need to grasp in order to understand investing. Compounding is key but Rule of 72, pay yourself first, and others are important too. I still think dollar cost averaging is one of them. Ed,I might be using Alegbra had it been taught to me in an applied manner instead of in the abstract. I never got to learn its usefulness.... but then again math was never easy for me. If algebra could be used in finance just imagine if teachers would have connected those two concepts together and taught it that way. We would be more literate in both areas. Steve, I am surprised how much this sounds like me on every count except I do my own yard work. In fact, I live on an acre lot and if I plant another tree or bush my wife says she's leaving me. I also have a garden. I started lifting weights/excercising a few years ago upon retirement seriously and lost 16 pounds I didn't thinkI needed to lose. My two autos are not new and are payed for. And you know how I invest. From the pictures I've seen of you , you look strong. I appreciate people who take care of themselves because so many don't .
  24. I received this as an e-mail but I no longer have assets in a Vanguard 403b. Some might find this info useful? https://www.vanguard403bservices.com/EntFiles/Docs/VG403b/2019/PART/VGLowerexpenseratiosareontheway062019.pdf
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