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tony

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Everything posted by tony

  1. 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
  2. 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.
  3. 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.
  4. 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!!
  5. 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.
  6. 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.
  7. 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.
  8. 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/
  9. 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
  10. 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
  11. 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.
  12. 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 .
  13. 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
  14. I think Americans definitely suffer from this syndrome. They definitely form an irrational bond with their jobs.We probably spend more time working than any other industrialized nation. And we don't complain much but maybe a little more than we used to.. Problem is no-one on their death bed will wonder if they spent enough time working. I don't miss it. I enjoy reading your commentary.
  15. yea , same here, they now pay much more in and get much less out. Eventually, educational pensions may be a thing of the past. Maybe maybe not.
  16. Life is certainly unpredictable and no decision looking into the future is ever 100%,but you and me are in agreement. Your state pension is much more generous than Virginia's.
  17. Personally, I can't imagine anyone missing work in any profession unless it was stress free and full of perks. As a retired educator, all I can say is my blood pressure is way down now and I'm 12 pounds thinner too. I don't miss the stress and my doctor telling me I need to be on anti -deppressent which I refused And i don't have an identity crisis. But we are all different. https://www.marketwatch.com/story/these-are-the-bad-things-about-early-retirement-that-no-one-talks-about-2018-09-26?siteid=yhoof2&yptr=yahoo
  18. MN GOPHER Good to hear from you. I am just offering my two cents not based on math or logic so I may be off because I am not familiar with accelerated payment concept. In Virginia, you can take a lump sum payment upfront upon retirement with a lower pay out through the life of your pension. Many teachers do that.I assume those that do don't have much retirement savings . And some make unwise decisions with it like buying new flashy expensive cars or taking expensive vacations with it.. I think they are rolling the dice.But if it were me I would not accelerate your pension if you are healthy and are taking good care of yourself through exercise and good nutrition and regular doctor visits. I guess if you truly plan to call it quits at a fairly young age of 57, you will possibly need more money to live on but since you have saved money in retirement accounts you could count on that or work part time. Also if you are married or have a partner that might be extra support. I bet if I had math skills the numbers would clearly show that an accelerated payout is not a good deal for you.But i will let the math gurus on this site correct me if i am wrong. You seem well covered with social security (you can take it early at 62) and retirement accounts and a pension so whatever you chose I think you are going to be O.K. I would hope you will have medical coverage through your school system at a group rate until you reach medicare age. That would also be a consideration. Now if you are in poor health, had to pay higher premiums for independent health insurance and didn't qualify for Social Security in your state than I might have a different opinion. I hope I understood your post correctly and I hope I have helped. Let us know what you decide. Tony
  19. Ed, unless you have actually taught over time in a K-12 classroom., it would be very difficult for you to accurately ascertain what it's like today to teach and the changes that are occurring because of technology overuse, bad parenting, poverty, and bad student behavior . Also , the issues mentioned may be more prominent and /or specific to certain school environments and communities than others. Now that I know where she taught, same place I also taught, I get where she is coming from. It could very well be though that she simply did not have the temperament to be a teacher in the first place but I do know my past school system presented and still presents some serious challenges.
  20. Yes I apologize if I caused confusion Ed. I read Moe's resignation comment and soon after ran into this teacher's facebook post from my school system that also resigned on Yahoo news. I did not know at the time how close to home this teacher actually was LOL! Both resignations were similar( somewhat) in sentiment. The local paper here picked up on her facebook post which has gone viral throughout the country which struck a nerve. I admire the candor she expressed in teacher frustration. And she is not wrong unfortunately. The 403b arena is only one area that needs improvement in Education. Other obstacles seem just as insurmountable unfortunately.
  21. FYI I realized today that the young lady teacher who wrote the above post I posted earlier is from my school system I retired from after 30 years teaching there and her comments have caused quite a reaction here. Didn't know that when I posted it. https://www.yahoo.com/lifestyle/teacher-shares-why-she-just-120000511.html
  22. Moe I ran into this article right after reading your post. I still think in an ideal situation teachers have it pretty good but the leadership is not where it should be and there is so much bias toward academic learning over CTE learning which might not be appropriate for a growing number of students.. I have found so many of my past administrators lacking in employee management skills. I think most folks in education that are in leadership roles need to be made to take intensive human /employee management skills. They also need to spend more time in classrooms. Some don't have a clue. "Still, that only chips away at part of the problem. As for the rest of it, well, we've clearly got some work to do. https://www.yahoo.com/lifestyle/teacher-shares-why-she-just-120000511.html In Virginia, if you quit, you can usually retrieve a current cash value of your pension based on past contributions. Do you have that option?
  23. You should give them a final exam before cutting them loose. Chances are though many will come back for additional advice .
  24. Yea, you should spend anything you pull out of a Roth IRA on retirement or you start the tax process all over again unless you just leave it in a checking account that pays no interest.
  25. That's much more impressive than my once in a blue moon cost of living increase.
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