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Everything posted by davegrant82

  1. Steve, Steve, Tara quoted $1,200 for a financial plan in New York. I'm in the suburbs of Chicago and my retirement plans alone start at $2,000. It would be even more in New York. I research financial planners to understand trends in the industry as I'm a columnist in a trade magazine read by 200,000 advisors, so her numbers are low given by the data I've gathered. Anyway.... I appreciate the kind words. With your comment on myself being too expensive - it depends on what you value, as value is subjective. However, I've found that many in the K-12 space don't value the services I provide even at a lower price point. For that reason, my business pivoted away from K-12 last summer. Given a rebrand, my business is now thriving. I hold no ill will to the K-12 profession but understand my services might not be top of mind to them as it might be for someone in a different profession. Given continuing the dialogue - there's only so many hours in a day. As I now focus on building a business that meets my personal goals and educating advisors on how to do the same, my input here will be limited. Finance for Teachers (my blog for educators) is still active, but is no longer being updated with fresh content. Keep fighting the good fight.
  2. I love articles by Tara, but there is one thing that isn't accurate: $1,200 for a financial plan in New York is a stab in the dark number. You can visit six different fee only planners - even hourly planners - and the range will be from $1,200 to $12,000. Your situation and the advisors expertise should determine how expensive it will be. Slightly misleading of Tara to pin a number on it.
  3. Apparently - even the Lincoln Investment reps don't know the PDP still exists! ______________________________________________________________________________________________________ I apologize; I thought Lincoln closed that down? We actually still do have it available. I will have it out to you shortly. Call if you have questions on anything. Thanks, / Financial Advisor Lincoln Investment / 500 Waters Edge Suite 150 Lombard, Il 60148 800 242 1421 / 630 620 6100 / fax 630 620 @lincolninvestment.com / www.lincolninvestment.com Advisory services offered through Capital Analysts, or Lincoln Investment, Registered Investment Advisors. Securities offered through Lincoln Investment, Broker Dealer, Member FINRA/SIPC. IMPORTANT: Electronic mail sent through the Internet is neither secure nor assured to be delivered on a timely basis. Lincoln Investment strongly recommends that you do not send confidential personal information, such as social security numbers or account numbers, to us via electronic mail. Do not send time-sensitive or action-oriented messages to us via electronic mail. Unsolicited instructions to "buy" or "sell" a security or to conduct any other financial transaction may not be honored.
  4. I just heard from the rep I use - it's to comply with the upcoming DOL rules. They're scraping 12b-1 fees and raising fees elsewhere to make up for the loss.
  5. krow - can you point me to where this price change is outlined?
  6. Hi all, After seeing that Lincoln may be increasing their 403(b) fees, I wanted to reach out to those of you to ask a question on using a self-directed 403(b). It's something I'm starting to more closely research to help my clients keep their fees in check. From what I know, a client can use an approved vendor in their district, and then remove the agent to have it be a self-directed platform. This has been discussed with Lincoln, and is common with Fidelity 403(b)s. However, what if the platform is not an approved vendor? What if a teacher opened a 403(b) at TD Ameritrade and then put the district's details on the application? As it's a self-directed 403(b), would they be able to do this, or because it's not on the approved vendor list, does that eliminate that completely? Thanks for your insight.
  7. I think we'll disagree on this topic until our dying days Steve :) "the industry knows they can make more money with the AUM model! " Yep, that's true. Flip side - I'm also doing more work than a commissioned broker, so shouldn't I be earning more? You're leaving out the behavioral side of finance here, Steve. Yes it may cost 1% or another fee to hire an advisor, but there's also been studies on "advisor alpha". These show by the very fact that you've hired an advisor, they will protect you from making mistakes when you get nervous about markets, life, etc. This can make up more than the fee you've paid in the long term. Like I said, we could go on for days discussing this, but I think you're the most passionate investor I've met in a long time. Not everyone has your desire!
  8. For every situation in the world, someone will take the time to come up with a negative spin on it......
  9. Debby - thank you for your post and encouragement. I haven't had confirmation from the district if they want to move ahead yet (my consulting price seems to be causing them pause), but if they decide they'd like to move forward I'll be in touch.
  10. Hi all, I've been approached by a school district to do a review of their 403(b) options and provide outside counsel on who their vendors should be and why. My concern - and valid based on this forum - is I'm going to scratch out all insurance company vendors, including AXA. In my work with educators, over 50% of 403(b)s held are with AXA. I have some questions: - For teachers on this forum, if your district came out and said that your 403(b) vendor was no longer on the list, even though it was the most popular among your peers, what would you ask from them in terms of an explanation? - If I were to suggest AXA gets removed and people had to switch, it may incur surrender charges to many people if they decided to transfer their whole account rather than stop contributing and go somewhere else. If you were in this district, how would like this to be explained? - (I already know the answer to this, but do want feedback) Should I suggest to leave AXA on the list due to how frequently it is used? TIA Dave
  11. Rant coming: For us professionals who assist users on this site - free of charge I might add - threads like this make me shake my head. Everyone has their own shortcomings in life - mine is repairs of any kind, so I rarely tackle a job myself - but for others, it's personal finance. If they would like to hire someone to assist them and save them time, money and headaches, then they shouldn't be discouraged from doing so. While it is important to ask the right questions and take time in finding a suitable advisor, treating every advisor like they're a "hardened criminal" will prevent your own financial success more than you think. Please be mindful that some forum posters want to work with a professional, and they should not be discouraged from finding a supportive relationship with one. Rant over.
  12. This PDP is really interesting, I wasn't aware that Lincoln had one. In knowing there is a self-directed platform, I may ask clients if they still want a rep tied to their account to direct trading and account management (which costs between 0.8-0.9%) or if they'd rather save this money and go it alone. Lincoln Investment Planning is my main go-to 403(b)/457 company when clients do not want to self-direct, or don't have great options in their district. They have a wide open mutual fund platform including Vanguard Admiral shares (as mentioned above) but also going into other passive families and active funds as well. I even had the rep I use for clients open up the Vanguard Target Date Retirement Funds for clients whose account size doesn't require a portfolio to be built. It's obviously not a perfect platform but when you're comparing it to an annuity product, it's a lot better.
  13. It was a standard interview for this article - except I had to give more details about 457s as Sandra hadn't heard much about this. It could have been twice as long though given how much detail the NYT just went into.....
  14. I'm just playing with you guys - I know I'm welcomed here. My traffic spiked when the first few came out, and my prospective client traffic has been consistently higher this school year from teachers around the country. Traffic keeps climbing on Finance for Teachers - getting close to 6,000 visitors per month. Everything's trending in the right direction! Steve - I agree, the NYT articles were great. I spoke frequently with Tara when she was putting those together and she did a great job.
  15. Trying to not take offense at the "you don't need a financial planner" comments being made :)
  16. Hi Nick, Some quick answers to your questions: 1. Contact your rep and ask the dollar amount of the surrender charges should you move to another vendor. Also ask about the penalty free options should you choose to do it over time. In the meantime, ask him to re-assess your risk profile and have less money allocated to the fixed income account. 2. My initial choice would be to open a 457 and use Aspire. If you're comfortable opening and managing the account yourself, you can find forum posts of instructions on how people have done this. If you prefer to have someone assist you, then make sure they build an ETF portfolio that isn't too complex. You just need simple right now. If you decide to stay with a 403(b), Lincoln Investment Planning will let you build a Vanguard portfolio, even using Vanguard Target Date funds. They will assess an annual management fee to your account (at your balance it will likely be 0.9%), but ask them not to tack on the rebalance fee as you will instruct them to do that yourself (if you don't use the Target Date fund). While USAA is a reputable company, I'm not aware of their mutual fund choices inside their 403(b). I would ask for a prospectus if you are looking at them, and post to these forums if you'd like insight. 3. I can't comment on question 3 without a conflict of interest as I am a NAPFA advisor. Best of luck!
  17. I would check out the 401k Study Group. Their members are advisors managing 401(k) plans, so it might be something similar to what you're looking for.
  18. whyme - wishful thinking I'm afraid. The new ruling only affects ERISA-covered accounts. Many 403(b)s, especially those in the K-12 arena, are not covered by ERISA so the new guidelines don't apply. It may actually get worse in this market as the new rules may constrict agents in other markets so they come to prey even more so in the areas that are un-governed. Dave
  19. Ditto on the advice given by Scott, but I would stay away from those Easy Choice portfolios in Pension2 - I heard the guys who created them were drunk at the time. Maybe that's where the beer of choice comes from on the podcast :)
  20. Krow36 - thank you for the explanation of how to calculate the expense ratio across an account. To amend one thing to your statement, Lincoln uses Admiral shares for the Vanguard funds, so the expense ratios will be the cheapest mutual fund offering that Vanguard has. The Vanguard S&P 500 would then be 0.05% expense, while Spartan S&P 500 Advantage Class is 0.07% (gross). The biggest thing to compare is how much you'll have to pay the company (Fidelity or Lincoln) and their reps. This would be a deciding factor for me with everything else kept the same.
  21. It depends on the funds available on the Fidelity platform. If Spartan index funds aren't available, Fidelity doesn't have that many index funds available, it's all active mutual funds. As an "index-only" advisor, I can't in good faith encourage the use of Fidelity when the expense ratios will be in the 1% range if there are other index options available. If that is the case, Lincoln and Fidelity are almost equal if Lincoln has a 0.6% fee with a 0.1-0.2% expense ratio (at most) at Vanguard. If things are almost equal, I'm going to suggest the index approach all day.
  22. (I can't figure out a way to upload a document sent to me by Lincoln, but it looks a little like this one) http://lincolninvestmentplanning.com/montgomerycounty/pdf/rsp104_hfg.pdf The fund choices have dramatically increased, but it looks like a similar offering
  23. Scott, They're not doing it just for the $35 charge. As mentioned, they also have the management fee of 0.9% for accounts under $100k, which falls to 0.8% when it gets over that. They also have a rebalancing fee of 0.6% below $100k, and 0.45% over $100k, so they're not doing anything for free. Their advisors I'm sure will ask if there are any other planning needs that the participant has in order to start a conversation, but as they are getting paid a management fee versus an opening fee (like AXA does), there is ongoing revenue for the rep. Dave Let me see if can find their literature to link to.
  24. Scott, I typically recommend most of my clients use Lincoln Investment Planning if no other decent vendors exist. I have roughly 10 clients (current and former) using a Lincoln Investment Planning 403(b), all invested with Vanguard mutual funds or Vanguard target date funds. My relationship with them is pure - I have told a rep that if he can provide a 403(b) using Vanguard and take my direction on allocation and rebalancing, then I will use him for my clients, when better options don't exist. My clients haven't be upsold or I would not be using them anymore. Is this what your meaning Scott? Or were you meaning a specific product? Dave
  25. NJTeach34 You have two good options. The one you outlined in the option I do with my clients when there are no other good options. Go with Lincoln, use Vanguard and build a simple portfolio. Don't use Lincolns rebalance program as it put up the cost, but make reminder on your calendar to email your rep every year to rebalance it. Or use Fidelity and their Spartan funds (if available). They are similar in approach and cost to Vanguard. Build something simple (2-4 funds) and concentrate on savings amounts versus investment tilts. As always, if you haven't fully funded a Roth IRA first, that would be the first thing to do. Open at Vanguard, use a Tiotal Market fund and invest away! Best Dave
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