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Everything posted by tony

  1. Most of their funds are of higher cost. I'm o.k with their index funds and they have good customer service. Fidelity was the first company I ever invested in. However they have no real interest in lowering fees. They only have an index fund component to compete with Vanguard. They are very slick about calling investors and offering them free portfolio reviews and then suggesting moving index fund money into more expensive Fidelity funds. That is no better than what annuity salespeople do. I prefer Vanguard because ALL their funds are very low cost across the board and they are not for profit. When picking a company you should also consider their mission statement and overall customer philosophy. Trust matters. They are not perfect, but pretty darn close. Investing is not about shopping at the local dollar store alone to save a penny or two. There is more to it. Low fees is only one part of the formula. Its extremely important we send the right message to posters, that low fees alone doesn't alone make you a sophisticated investor-much more to it. And as useful as our comments here and Ed's guide to 403b choices might be, and I commend him for putting it together, newbies need to explore other more in-depth publications like books by John Bogle to get the bigger picture of investing if they wish to succeed . Posting here should only be the beginning of your journey.
  2. keep in mind this is also somewhat incomplete info. IRA has a limited lower contribution rate than a 457b or 403b. I guess much depends on how much you plan to invest. An IRA might be better because you can set it up outside an employer and you can pick any company or fund you want but the limitations hurts how much you can invest should you want to maximize your retirement savings. Of course you can contribute to all three -IRA, 403b, 457b, and even taxable accounts which has slightly different rules . In terms of going a Roth over a tax deferral account it all comes down to whether you want to pay the taxes as you go now or pay the taxes later at 70.5 years of age. I've read plenty back and forth articles on which method is better. Its a personal choice. Perhaps do both?
  3. Jane , I think your rep gave you wrong or incomplete info. Krow is right unless something has changed.
  4. Don't kick yourself. kick the horace mann rep out of your life You need to get the state 457b activated but conflicting interests might try to keep it from happening but since it is tied to your state retirement plan indirectly (VRS) you might get it implemented. It's an excellent plan as far as 457b plans go. Administrative fee is low and funds are very cheap. I invested heavily in it during my last five years of teaching and never regretted it. I then upon retirement consolidated everything into an IRA with Vanguard. https://www.varetirement.org/dcp/investments/fund-profiles.html
  5. But achieving FIRE – short for financial independence, retire early – can come at a hefty price to your everyday life, according to former FIRE followers and a personal finance expert. https://money.yahoo.com/saving-early-retirement-194344104.html
  6. Jane I am in Virginia and I also fell under plan one. If you can get your school system to add the Virginia 457b plan you would qualify to contribute to it. Trust what I say because I'm the guy who got it added to our school system. No-one even knew about it. I called VRS and they were very good about following through. It was easy as 1-2-3 once I could convince our district to add it. It's an excellent plan with target funds and index fund options with rock bottom fees that rivals Vanguard fees.You would be helping yourself and others by adding this. Teachers in Virginia qualify. I know how you feel about teaching. I got to feel the same way about year six before retirement. It was an environment of stress and it started coming from all directions. I still scratch my head wondering how I made it for 30 plus years but it has gotten worse the last few years and I've heard an earful from current teachers. It's a microcosm of a society in flux. You're investment choices aren't that bad. The thing is you are paying too much for them. You've given more of your hard earned money away than you should have because of high fees but at least you saved!! I think adding a 457b would not interfere with Voya's 403b plan. It would be an alternative option, a separate entity. I would bring it up to your superiors as such.
  7. MANY BELIEVE we’ve raised a bunch of financial illiterates. If people were better educated about personal finance, the argument goes, they’d make smarter money decisions. https://humbledollar.com/2019/11/getting-schooled-3/
  8. Just read Steve's comments. Sound like we are on the same page. I think Voya might be a better option than Horace Mann. Once we have more details of what other choices you have outside of and with Voya we might be able to help further. Also if you are from the same school as Library lady, Aspire would be a way to transfer all your money out of Horace Mann and into Vanguard. If you can do that I would definitely advising maxing your accounts. Then again you could also save in a taxable account and go directly to Vanguard on your own. As you know, Taxable accounts and 403b and IRA accounts work differently but having both helps diversify your options with taxes.
  9. Jane Doe I'm hesitant to give too much investment advice because every one's finances are different and personal. Certainly if you can invest your total paycheck, which most teachers can't do, I would definitely max out your 403b and 457 b accounts. The thing is you will still have to pay taxes eventually on that money when you decide to withdraw it. That maybe be good if your income will be lower in retirement than it is now. . Keep in mind you will have a pension plan and social security. In my state both of those are taxable and I don't know your marital status which might also influence your taxes paid. Personally I would prefer to pay taxes now and not later. Does your 403b and 457b accounts have a Roth option? I would pursue that route personally but not everyone agrees with this approach. Starting when you hit 70 you will have to start paying taxes on your deferred accounts like it or not. It could be a nightmare. All those things have to be considered. If you go Roth you will pay taxes now more incrementally but it will be tax free on withdrawal. I like that approach better if nothing else from a psychological level. i wish I had that option earlier in my career.. When you retire, i would immediately transfer all your accounts over to Vanguard and consolidate your accounts into some good funds. I like the Vanguard Life Strategy Funds. They come in different allocations and you can chose the one you think suits your needs. They are internally managed and are made up of Vanguard Index funds. They are low cost and very easy to manage and diversified. I would prefer you stay away from Horace Mann. Did an advisor recommend putting your whole paycheck in their funds? Be careful. It sounds like some commissioned sales person might have put that idea in your head. Not that it's necessarily a bad idea to do that because saving is never a bad idea. But I just don't know enough of your details to say this might be the way to go. Do you and or your partner utilize and max out an IRA outside of your employment? Can you tell us what other choice of investments you now have in your 457b 0r 403b? If you could list your options we might be able to get you to transfer your money NOW to a better option. Personally I would suggest you slow down before jumping to quickly. Keep us informed and keep communicating and we might help you make the right decision.
  10. Jane Doe All of us appreciate it when we get feedback. Thank-You Yup, they are lining their pockets at your expense. But it's all very legal. You have to be careful. We all do.Some of these companies have added big time names to their fund choices like "Vanguard" and "Fidelity "and "Index Funds." They use that as a ploy to draw you in. It all sounds good but what they don't tell you is glaring. You are paying much much more than if you purchased a Vanguard or Fidelity index fund on your own not associated with an insurance company.. When you invest with these insurance companies you are not only supporting your retirement but you are also paying the advisor and the insurance company and the underlying mutual fund LOL!!. In the end you end up paying too much for a Vanguard fund whose expense ratio is quite low and always honestly and transparently stated on their (Vanguard) webpage. Fees are actually taken out daily based on your balance.So the more you invest the more they get. Overtime (years)you will give up a huge portion of your money to a company and advisor who often offer little additional value. They prey on ignorance. Good for you for opening the pandora's box!!
  11. Costantino, sounds like a nice Italian name. I'm Italian too. Regardless welcome to the board. 1.You have some good options but before we proceed can you explain who is overseeing your funds (company) Good funds alone don't tell the whole story. 2. is this in a 403b or 457B account? Are you a teacher? 3. Are you dealing with an advisor? Who does the advisor work for. Have you already had contact? 4. Can you provide us with your district's provide'r list? (choice of investment companies). This should be available on your teacher webpages or by asking a central office person in charge. 5. Do you have the fees involved ? Are they stated anywhere ? All this information is important to help you. Please provide as much info as possible. Tony
  12. tony

    Why? FI

    Financial independence is, in many ways, just a new wrapper on some long-cherished financial notions. While the movement has taken hold among millennials, the core ideas will be familiar to a lot of baby boomers and Gen Xers. Earlier generations often subsisted on a single income. Owning just one car, and raising a family of four in a home with two bedrooms and a single bathroom, weren’t unusual. “Earn more, spend less” isn’t exactly a new idea. Perhaps the financial independence movement could most accurately be described as a throwback to earlier times. https://humbledollar.com/2019/11/why-fi/
  13. But advisors can 't be held liable for doing the same.
  14. Which from my experience means ...... it will never be discussed at all past the first step but i hope I am wrong.
  15. Oh . Sorry didn't make the connection and didn't remember you had these options. You are in a much better place than most school systems. Its just a matter of getting the word out.
  16. funny all three of those though would be less damaging. Well maybe a petition isn't what I meant. Maybe just a list of teachers interested in new 403b options? I know when we added better options, the personnel guy asked me that my desire to add Vanguard would be taken more seriously if I had others interested too. I came up with about 75 signatures which helped push our 403b toward Vanguard. I was a little deceptive in that I asked folks to sign it who frankly didn't always really know what they were signing but did it ,to help me out. I guess in that instance I was acting as bad as insurance salespeople. But my intentions were good.
  17. I also want to add that you propose to have advisors sign a fiduciary standard but they by law (or lack of)are not required to do so. So who is going to monitor the advisors? Unions won't and The district won't . So its business as usual. Also. Handholding is a big reason school systems won't stop advisor contact imperfect as it might be. Teachers don't know enough to proceed on their own and that is the advisors way in. We know what happens then.
  18. MN Good ideas but in my opinion the change will have to come from the bottom -up. Get a bunch of teachers to sign a petition of sorts endorsing your recommendations.The more the better. Most school systems won't feel the urgency to make changes when they don't perceive a problem. While your ideas are good, most folks have such a low financial IQ that it might not stick unless you show broad teacher support for your recommendations. Good luck.
  19. Ottakee The financial industry is pretty much self serving and purposely complex and basically dishonest. Your best move in my amateurish opinion is to self educate yourself and be your own fee-free only advisor. With the internet and plenty of good books out there you can do it all on your own. Steve S has written a few himself.And YOU will always be there for you!! It's like anything else, the more you learn about something the more you realize you can usually have done it yourself and you come to realize the experts don't know as much as you might have thought. Just do it. I've learned to do more and more things regardless of the task on my own. I was so tired of dishonest advisors, repairmen, etc etc who are either incompetent, dishonest or unreliable. We come to rely too much on so called experts thinking they know something. You would be surprised how many doctors even use Dr. Google these days. Just my 2.5 cents Tony
  20. I know we all like to comment but maybe we over comment. If one person has answered the question then the rest of us maybe shouldn't repeat the same information. Only add something new. Thats what I'm going to start doing. My number one goal is not necessarily to push everybody to lowest of low fees but instead I'mm more interested in trying to remove the strangle hold the insurance industry has on the 403b industry and to further financial literacy.
  21. KTD You two best options are Aspire self directed into Vanguard or Fidelity Index Funds or Security Benefit Direct Invest into index funds. This topic has been exhausted around here. Any new comments would be repetitive.Try reading some other threads on this discussion board.Obviously if you are looking for advisor help, these vendors would not be for you although Aspire does offer that if you don't self direct but fees will rise.. If you need help setting up a portfolio that is simple and diversified using index funds let us know. This article would be useful in that regard. This thread gives you all you need to know and would apply to you as well.
  22. Steve I certainly wasn't lecturing you. I was trying to agree with you in regards to Direct Invest Tony
  23. I would like to see the numbers of how many people are actually enrolled in NEA Direct Invest and how many even know it even exists and how many even care. Sales people are not going to recommend it so it's not going to change the 403b world and that's just the WAY Security Benefit and the NEA wants it. You are not going to hear these companies and salespeople saying " Hey I have a program here that has rock bottom fees and I want to explain it to you and help you sign up for it even if I don't make any commissions on it" That's why I think Aspire offers a better way out of annuities. It's visible on provider lists and offers an escape hatch that a teacher can find on their own instead of having to come to this obscure site to find out. The catch there is understanding that the self direct option which isn't advertised is the way to go.
  24. We've discussed here why you shouldn't rely on Dave Ramsey or Suzie Orman for investment advice but they seem to reach more people than the folks who give much better and specific advice. They all have something worthwhile to offer, but after rereading them, I found that all had a glaring omission: a lack of substantive advice on investing. You will have to go elsewhere for an in-depth discussion of how to set up a portfolio and choose among stocks, bonds, exchange-traded funds or mutual funds. You should be able to finish the article by clicking the box a little way down the article https://www.nytimes.com/2019/10/11/business/suze-orman-robert-kiyosaki-dave-ramsey-books.html
  25. I may not know what I am talking about because my only stake in real estate is my house. I sold my parent's house after their death. But it seems to me real estate is much harder than simply saving long term in low cost index funds. Real estate requires maintenance, and more ground level work than simply dropping a check in the mail or having it taken out of your paycheck. I live in a university town ( one large and three smaller)so we have plenty of folks investing in real estate here and I know some neighbors who have done well with real estate. Still If you understand the truths of investing wouldn't it be easier to invest in stocks with similar results minus all the extra legwork? I'm sure millennials will want lower fees with advisors if they understand finances, otherwise they will repeat the mistakes of the baby boomers and other generations. My father in law who is 83 has no clue how much he is paying-giving away to his advisor. He trusts him and that is all that matters to him. Are millennials really smarter or just as ignorant about finances? I did have a thought though. california real estate is very high cost and probably very lucrative so renting is going to make big bucks.
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