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shirley

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  1. Krow, I suggested Fidelity because Maureen wanted to keep her Vanguard account empty....for a reason that I don't understand. I know that the backdoor Roth requires IRS forms and extra bookkeeping so I don't understand the empty account. Also, I didn't understand why these accounts "interfere" with the backdoor Roth. Thanks for the clarity...I always enjoy your comments. Bob
  2. Maureen W, You failed to mention whether or not you are vested with PSERS. If you are not vested (or don't plan to vest) then you should probably get the funds into a retirement account.....probably a traditional IRA with Fidelity would work and not interfere with your Vanguard accounts. This should be easy. PSERS has a lot of info on the website. Bob
  3. What does "** are not supported" mean and why are they on the list?
  4. Kieran, FYI, Mutual Funds with the designation "R" is another sneaky way (though perfectly legal) of hiding fees. The fees usually come via higher expense ratios, thus draining your returns; over the years this small fee will provide diminished results. Bob
  5. D.D. As Tony stated, your BEST choice is to maximize your employer match. Your next question is whether to use the Traditional or Roth 403b for your investment vehicle and that has a different answer for each of us because there are many variables, i.e., pensions, social security, other income, spouses income, retirement age, etc. I boiled it down to another question: do you want your investment to compound on a tax-deferred basis or tax-free basis. There are many articles re this topic and there is no fit-all answer. Some of us prefer tax avoidance and select the Traditional IRA; some anticipate high income during retirement and select the Roth; and some select a mix of both. As Tony and krow both point out, an investment directly with Fidelity and Vanguard for Traditional or Roth IRA is an excellent choice. Additionally, in larger cities, Fidelity has walk-in and appointments for one-on-one service. Good luck. Bob
  6. MNGopher, I absolutely agree!!! Because you would no longer be employed, you could roll your entire 403b into an IRA. You could then supplement your Option A ($4050/mo. for life) with withdrawals from your IRA. At the same time, once a year compute your most favorable amount for a Roth conversion. Perhaps you could do this until age 70 and then take your maximum SSA benefit. Everybody's arithmetic is different but, personally, I prefer to pay the tax and take advantage of compounding on a tax-free basis. I like what you're doing. Bob
  7. RuthD, Since you expect a pension and the same tax bracket, do you want to compound your savings on a tax-free or tax-deferred basis?
  8. Dan, This is a valuable lesson that is often neglected on your site. I, too, fell into this trap. I became aware at age 65 with 5 years until retirement and started rolling funds into a ROTH IRA from my 403b account. I was able to absorb the tax bite by using my conventional savings account. The entire 403b account was moved and, as you know, was unable to touch the 457b account because I was still employed. My full pension, plus SSA ( I was a classified employee) lifted me into a higher tax bracket. Currently, I have an untaxed Traditional IRA that will generate more income from the RMD. What a problem!!!! Thanks for the reminder to all of the supersavers and longtimers!!! Bob
  9. Krow36, Thanks, Krow36........valuable information!!!!! Bob
  10. shirley

    403-b

    SJP-3, What kind of 403b is that? Perhaps you need to investigate what you own!!! As Ed pointed out, since all of these funds are under a 403b umbrella there are no tax consequences. However, there is no 403b account that can be liquidated in two days. Every holding will need to be researched to find out if they are a 403b or not!!! Sounds like a can of worms but RELAX....this is all doable. Bob
  11. shirley

    403-b

    SJP-3 This is an outrage and a good case for elder abuse. Additionally, this should be published in the NYT as a supplement to their excellent article re the state of the K-12 403b product. Don't feel bad as others have said; the salesmen (financial advisors) have no SCRUPLES!!!!! Bob
  12. shirley

    Excessive fees?

    Kal, Since you are retired, roll all your funds into an IRA account with a low cost fund family (Vanguard or Fidelity) and be done with this nonsense. The fellas here will help you with a low cost portfolio. Depending on the size of your pension, perhaps you don't need the annuity and can invest it elsewhere....good luck!!! Bob
  13. MoeMoney, "How to tell the difference".....GENERALLY SPEAKING 1. The company employs a sales force and calls them financial advisors. 2. The company name is patriotic or uses words like security, benefit or trust. 3. The company website is annoying and hard to navigate; the Prospectus requires a magnifying glass. SPECIFICALLY 1. Google: Is Valic a life insurance company? Unfortunately, these companies are relentless in their efforts!!!! Bob
  14. MoeMoney, Re "what teachers ought to know", I have one suggestion. It is absolutely IMPERATIVE that a teacher (investor) learn to differentiate a life insurance company from a mutual fund. This, alone, will eliminate most bad apples. Bob
  15. J, Met Life is an insurance company......get out the magnifying glass and microscope and read the prospectus!!!!! Bob
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