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febarnes

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Everything posted by febarnes

  1. 1) My questions were not to you unless your name is febarnes or wmmcall. You seem to think that you can speak for them. Are they not able to speak for themselves? Apparently not. I am certain that if I had made those comments about Vanguard you all would be all over me for not providing any documentation. I simply ask others TO DO THE SAME. 2) Nobody has answered any of the questions I asked. My same questions are below: If you care to answer them, please do. If not, let's move on. 3)I simply asked others to support their lengthy, undocumented assertions about these firms. Here are the questions I asked before. I ask anyone here to answer them in a factual manner supported by evidence. "Please show us how the fee structure is 6-8 times the average. The average of what? The average fee structure of Vanguard no load funds? The average expense ratio of the average retail mutual fund? The average expense ratio of the average VA subaccount? You say someone will be paying 7% off the top for what? What page is that in the prospectus? You say the salesman get no commission off the fixed account? I assume you know this because you have a copy of the employment contract with commission schedules for Valic representatives. Please show us where in their contract it says this. Please provide the historical returns for Valic's investments that document that an investor will never meet or exceed the rate of inflation. Please provide the documentation that someone will "loose" money and then please provide the list of teachers who have not made any money in their Valic accounts." Tr: Yes, I can respond for myself. I presented to our board eight pages of data that unequivocally shows the plan as it is structured does not benefit the contributor. I provided my personal financial information as well as the Valic fee structure. I simply compared like funds to Vanguard and Fidelity. These funds trounced Valic. Furthermore, the teachers in my system are irate at the lack of full disclosure of the terms and conditions of the contract. I might add, if one thinks Valic operates in the best interest of the client, they are incredibly niave. I will be presenting this info at our association meeting on Thursday. It is open to the public.
  2. AP: I do not have the portfolio director. I have the original program from 99. It is a dud. As I stated in another post, Valic is neither consistent or transparent. I am just glad to be able to serve and inform about the 403b 7 plans. I have a meeting with our teachers organization on Thursday. I am looking forward to making the presentation.
  3. VA, This is one big red flag. No fees at all? VALIC, not surprisingly, is a money making company. How would it make money if it did not charge any fees? I would be EXTREMELY suspicious! I would pin down the Valic rep and specifically ask about the following fees: - Front end load - Surrender fees - Mortality and expense fees - 12b-1 fees - Account administration fees - Management fees - Loan application fees Furthermore, I would specifically ask the rep how he is being compensated by your investment. Don't be bashful. It is your money. Let us know what you find out. I have placed all my assets in the fixed account because the agent gets no commission. In fact, you have to ask for the fund. It is not disclosed under funds. It may be found under fund performance next to last on the list. This is a temporary measure as our school system is in the process of selecting a NEW VENDOR. HOORAY!! However, due your own due dilligence. There is nothing consistent or transparent with Valic. I will be on the committee to make recommendations for our new vendor. I promised my fellow teachers one thing. I will under no circumstances endorse or recommend Valic or any other insurance firm as a provider.
  4. From my experiences Valic is really not all that different from dozens of other lousy plans available out there. What all these companies have in common is that they are pedaling products to people that are financially illiterate. They use marketing skill and selling skills to build value for bad products. They hardly mention fees and expenses to customers in the proper light and often do not have the skill themselves to recommend products that are in the customer's best interest. What they are doing is looking after themselves and not you. In many ways we are our own worst enemies because we let them flatter us and charm us into thinking they are doing us a favor. Plus, isn't it so nice of them to give us free pencils and calendars and donuts. Again ,this happens because they are trained salesman and we are financially uninformed. We are easy prey. I made my share of mistakes myself in the younger more gullable years and what I have discovered is the the folks at the central school board office where just as illiterate as I was. The only way you can change this general ignorance is through education. Caveat Emptor!! ( Let the buyer beware) is sound advice in any situation! I am proud to say that we now have Vanguard as an option at our school system because a few of us were able to educate ourselves (thanks to this site in particular) and we were able to educate the people at the top as well. In fact since this topic is in every employee's best interest to study, we even got the superintendent to sign on to Vanguard. We've all got to stop being so stupid , develop some healthy cynicism and do our homework before we sign on to anything we don't understand-then we will become a force to be reconed with!. Tony Tony: I have been fighting this fight since May of last school term. I made a presentation to the board in August. They know there is a problem and have decided to fix it. I presented them with documents to support Vanguard as a vendor. I am scheduled to speak at our G.A.E association meeting next Thursday. I intend on educating and getting signatures to a petition for Vanguard as our vendor. What does Valic promise boards to hook them? From my experiences Valic is really not all that different from dozens of other lousy plans available out there. What all these companies have in common is that they are pedaling products to people that are financially illiterate. They use marketing skill and selling skills to build value for bad products. They hardly mention fees and expenses to customers in the proper light and often do not have the skill themselves to recommend products that are in the customer's best interest. What they are doing is looking after themselves and not you. In many ways we are our own worst enemies because we let them flatter us and charm us into thinking they are doing us a favor. Plus, isn't it so nice of them to give us free pencils and calendars and donuts. Again ,this happens because they are trained salesman and we are financially uninformed. We are easy prey. I made my share of mistakes myself in the younger more gullable years and what I have discovered is the the folks at the central school board office where just as illiterate as I was. The only way you can change this general ignorance is through education. Caveat Emptor!! ( Let the buyer beware) is sound advice in any situation! I am proud to say that we now have Vanguard as an option at our school system because a few of us were able to educate ourselves (thanks to this site in particular) and we were able to educate the people at the top as well. In fact since this topic is in every employee's best interest to study, we even got the superintendent to sign on to Vanguard. We've all got to stop being so stupid , develop some healthy cynicism and do our homework before we sign on to anything we don't understand-then we will become a force to be reconed with!. Tony Tony: I have been fighting this fight since May of last school term. I made a presentation to the board in August. They know there is a problem and have decided to fix it. I presented them with documents to support Vanguard as a vendor. I am scheduled to speak at our G.A.E association meeting next Thursday. I intend on educating and getting signatures to a petition for Vanguard as our vendor. What does Valic promise boards to hook them? Tony: What process did you go through to get Vanguard? FB-- What documents did you use in support of Vanguard? Do you have any information on VALIC that I might use? (See other thread) I know I can gather some information on my own, but I'm trying to take a bit of a short cut by appealing to others who have confronted this issue. Since I just got the announcement today, I may have some time to thwart the effort to go with VALIC before it gets to settled in place. Thanks Bill Bill: I provided them with my personal financial info. it is a horor show in and of itself. I gave them sample portfolios apples to apples comparisons that show what a dog Valic investestments are. I showed them returns on like investestments with Valic and Vanguard. It was embarrassing to see the look on the board members faces. The board now knows the real picture about costs and net gain. Vanguard trounced Valic by 158 thousand dollars in one of my examples. There fee structure is 6 to 8 times the average. They charge 1.25 percent on the balance of your account. Each fund carries a 1.25 + expense ratio. If you are in a diversified portfolio which is what your salesmen is going to attempt to get you to do. You will be paying about 7 percent off the top for your investments. The Market's average return about is 10 percent. If you get into Valic, put all your money in the FIXED ACCOUNT PLUS. It will make the salesmen mad because they get no commission off this account. However, you will have to ask and insist on it. I have personally persuaded dozens of teachers in our district to do so. Your investments will never meet or exceed the rate of inflation. In short, You willl loose money. I have discussed this with about 50 teachers at my school and not one of them has made money, not one.
  5. From my experiences Valic is really not all that different from dozens of other lousy plans available out there. What all these companies have in common is that they are pedaling products to people that are financially illiterate. They use marketing skill and selling skills to build value for bad products. They hardly mention fees and expenses to customers in the proper light and often do not have the skill themselves to recommend products that are in the customer's best interest. What they are doing is looking after themselves and not you. In many ways we are our own worst enemies because we let them flatter us and charm us into thinking they are doing us a favor. Plus, isn't it so nice of them to give us free pencils and calendars and donuts. Again ,this happens because they are trained salesman and we are financially uninformed. We are easy prey. I made my share of mistakes myself in the younger more gullable years and what I have discovered is the the folks at the central school board office where just as illiterate as I was. The only way you can change this general ignorance is through education. Caveat Emptor!! ( Let the buyer beware) is sound advice in any situation! I am proud to say that we now have Vanguard as an option at our school system because a few of us were able to educate ourselves (thanks to this site in particular) and we were able to educate the people at the top as well. In fact since this topic is in every employee's best interest to study, we even got the superintendent to sign on to Vanguard. We've all got to stop being so stupid , develop some healthy cynicism and do our homework before we sign on to anything we don't understand-then we will become a force to be reconed with!. Tony Tony: I have been fighting this fight since May of last school term. I made a presentation to the board in August. They know there is a problem and have decided to fix it. I presented them with documents to support Vanguard as a vendor. I am scheduled to speak at our G.A.E association meeting next Thursday. I intend on educating and getting signatures to a petition for Vanguard as our vendor. What does Valic promise boards to hook them? From my experiences Valic is really not all that different from dozens of other lousy plans available out there. What all these companies have in common is that they are pedaling products to people that are financially illiterate. They use marketing skill and selling skills to build value for bad products. They hardly mention fees and expenses to customers in the proper light and often do not have the skill themselves to recommend products that are in the customer's best interest. What they are doing is looking after themselves and not you. In many ways we are our own worst enemies because we let them flatter us and charm us into thinking they are doing us a favor. Plus, isn't it so nice of them to give us free pencils and calendars and donuts. Again ,this happens because they are trained salesman and we are financially uninformed. We are easy prey. I made my share of mistakes myself in the younger more gullable years and what I have discovered is the the folks at the central school board office where just as illiterate as I was. The only way you can change this general ignorance is through education. Caveat Emptor!! ( Let the buyer beware) is sound advice in any situation! I am proud to say that we now have Vanguard as an option at our school system because a few of us were able to educate ourselves (thanks to this site in particular) and we were able to educate the people at the top as well. In fact since this topic is in every employee's best interest to study, we even got the superintendent to sign on to Vanguard. We've all got to stop being so stupid , develop some healthy cynicism and do our homework before we sign on to anything we don't understand-then we will become a force to be reconed with!. Tony Tony: I have been fighting this fight since May of last school term. I made a presentation to the board in August. They know there is a problem and have decided to fix it. I presented them with documents to support Vanguard as a vendor. I am scheduled to speak at our G.A.E association meeting next Thursday. I intend on educating and getting signatures to a petition for Vanguard as our vendor. What does Valic promise boards to hook them? Tony: What process did you go through to get Vanguard?
  6. I do not find it funny neither do the 400 other teachers in my system who do not like the failure to fully disclose the plan or act in the best interest of those contributing to the plan. Sir, your attitiude is much like the insurance salesmen Valic sends out purporting to be " financial advisers," they are a joke but they are not funny. FB
  7. How does Valic get all these school systems to sign on with them as a 403b vendor? They are without a doubt one of the worst choices on the planet. What do they offer a school system that is such a good deal? What takes place in the bidding process? I have recently been asked to serve on a 403b change committee. I will have input into our next vendor choice which will NOT be our current vendor. I would appreciate some guidance and advice from veterans of the 403 b wars. This could possibly be my greatest contribution for good in my 27 year career as an educator. Please help me with this golden, or should I say, GREEN opportunity. FB
  8. This is an issue of free speech. The teacher has the right to present facts and figures about any company that makes such facts publicly known. This does not make him an agent authorized or unauthorized. If he is compensated by a company, that is a different ballgame. Joes: Free speech is free speech. Your argument not withstanding. Policies may require one to request the location, but they cannot prohibit. The courts have already ruled on this. Are nurses and doctors excluded from the first amendment?
  9. This is an issue of free speech. The teacher has the right to present facts and figures about any company that makes such facts publicly known. This does not make him an agent authorized or unauthorized. If he is compensated by a company, that is a different ballgame.
  10. The issue is not the employment status of the employee. The issue is whether her EMPLOYER restricts the investment choices in the 403b plan. The EMPLOYER can do this and it is perfectly within 403b regs for them to do this. I work with several employers who restrict the choices in their plan. Employees can make 90-24 transfers inservice to the other companies IN THE PLAN. The employee cannot transfer the funds to any investment firm outside the plan until the employee meets a distributable event (such as termination of employment). I would suggest you inquire with her HR department. I am sure they will be able to verify what her choices are. Article three of my agreement says the employer may impose other rules such rules NOT contradictory to federal law. Please explain what this clause means. I would like to have my memory refreshed as to the meaning of contradictory.
  11. Qwerty: Let me give you some friendly and experienced advice as I am in the process of executing the 90- 24 with Valic and my school board. 1. Read your contract, especially the rules regarding transfers. 2. Request and read the agreement you signed upon entering your salary reduction with your board. 3. Do not take NO for an answer. 4. Their is usually a clause in article three of your agreement that states, " the employer or provider of the plan may impose other rules, SUCH RULES NOT CONTRADICTORY TO CURRENT LAW. 5. SEE 3. 6. It is your money and ultimatley it would be difficult for a vendor or a board to refuse your request legally. I have consulted an attorney in this matter.
  12. I would like opinions about Vanguard funds, specifically the Windsor II and the Total Stock Market Index Fund.
  13. How do we know Valic will insure compliance? They are simply using teachers to make money. They provide no education. They answer no pertinent questions about the junk they sell. The words full disclosure is not in their vocabulary. It is a buddy buddy agreement with school boards and Valic. The winner is not the contributors to the plan but Valic.
  14. How many 403B/ TSA salesmen frequent this board?
  15. Ap: I would guess most of these managers do not eat their own cooking. If they did, they would die malnourished. By the way, I have a meeting of the minds on Monday. fe
  16. Ap: I would guess most of these mangers do not eat their own cooking. If they did, they would die malnourished. By the way, I have a meeting of the minds on Monday. fe
  17. Ira: I am constantly reading books about investing. I will read as many as I can, including the ones you suggest. By the way, I have a few index funds in mind. This is why I want to get my assests from valic transferred... More choices, better diversification! fe
  18. Ira: I believe in investing in good solid companies long term. The stocks I buy I plan to hold for a long time. I use more than an internet service to make my investing decisions. I also use the public filings of the sec as well as anumati.com for unbiased info. I do not believe past performance indicates future performance. However, if one invests in solid companies for the long term, one will be successful at investing. I intend on investing money in solid companies in three phases. This will take some time. However, I believe it will be efffective. In short, I read as much about a company as I need to make a decision to buy it for the longterm. I guess you would say I am a buy and hold type. There are a number of factors to consider before I press the buy button to purchase any company. Personally, I believe you give good advice. I do not know enough about "your philosophy of investing" to make a judgment as to it's merits for use by me. I imagine you are very successful. That being said, if you wish to discuss your investing philosophy, I will most certainly listen. After all, If I knew all I need to know, I would not be in this forum. fe :)
  19. Ira: They post their stock advisor picks for all to see. Tom and dave both beat th estandard and poors average by more than 20 points. This is a mcuh better indicator thatn both the dow or nasdaq. fe
  20. Ira: I realize magazines may be biased. However, facts that are verifiable are still facts. If one does due diligence he can discern fact from fiction. This is why I want out of my Valic program. I have ascertained fact from fiction. Tom and David Gardner have an excellent track record as investment advisors. They are not perfect, no one is. However, there performance is very good, no matter who advertises on their site. I trust these two gentlemen, who I have never met, more than any of the three Valic reps I do know. Why? PERFORMANCE! I appreciate concerned individuals like you Ira. It helps to get perspective from others who have " been around the block a few times." febarnes
  21. Ap: You've got mail. I Hope! Thanks for your help. I have made some progress, too. febarnes
  22. Ira: Yes, the employer provides a three percent match. The alternatives are limited to mutuals that are historic underachievers. I have read Greenblat's Little Blue book on investing. I read financial magazines and articles by Money Mag, and Forbes in particular. I subscribe to an online service, Motley Fool. I will be discussing my concerns with the finance director for the school system in the near future. febarnes
  23. Yes, they are not glorified salesmen.
  24. Ira: Yes, they are fee paid. In other words, they are not glorified salesmen. I have a copy of my agreement for salary reducuction. However, it does not specify all I need to know about the How To Transfer Assets. I have been in the program seven years. IF the surrender penalty is 5 percent for five years, a 15 percent penalty may not be so bad, considering I have ten years to make money. I will decide my course when I receive all the info needed. I am amazed this info is not readily available for all contributors. This fact alone causes consternation on my part. I will also approach the school board about providing alternatives to our current plan. Vanguard and T. Rowe Price will be two of my suggestions based on company history, growth, and client satisfaction. I have requested a copy of the contract, and a transfer of assets through the superintendent of our school system.
  25. Ira: I have employed an independent financial advisor service. I have followed my personal account closely. It has produced zero growth. There are low risk index funds that will produce 6 to 10 percent growth over the long term. While Valic may be working for some , it is not for me. Therefore, I have requested a change of vendor. Vanguard offers index funds with an expense of .18-.25 percent. One in particulart i like is the total stock market fund. The fee structure for these funds may be found on the internet. I have also discussed this move with Vanguard to verify my information. While I am no expert, there are some professionals that call my current annuirty program a " dog" because it just want hunt.
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