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Posts posted by Broski499

  1. I'm trying to decide on whether to use the CalSTRS Pension 2 or School's first Federal Credit Union Retirment Builder which is done through Nationwide. Here are the fees assosiated with School's first. Does anybody have any expereince with them? I switched over to them for my banking and have been very happy with the great customer service. They also have a lot of products deisgned specifically for teachers.


    Managed Account Services Amount: 0.70% When the Fee Applies: Pro-rated for days under management How the Fee is Computed: Percentage of account value Fee Waiver: No waiver if managed account services is used. The annual fee is pro-rated for number of days under management. Fee is deducted quarterly or at the time of termination of the managed account services option. Fee is in addition to the Asset Fee and internal fund expense of individual funds. Does not apply to accounts not using the service. Fund performance is not reported net of this fee. Breakpoint: None apply. Capped: Yes Asset Based Plan Administration Fee Amount: .21% When the Fee Applies: Daily How the Fee is Computed: Percentage of the account value Fee Waiver: No waiver. Fee is assessed to cover plan administration expenses and may be redetermined periodically. Prior year fund performance is reported net of prior year's Asset Based Plan Administration Fee in effect on 12/31/2013. Prior year's fee was 0.20%. Breakpoint: None Capped: No Asset Fee Amount: 0.04%, or 0.44% When the Fee Applies: Daily How the Fee is Computed: Percent of account value Fee Waiver: No waiver of Asset Fee. Asset Fee is based on assets in the plan and the funds selected. Different funds have a different Asset Fee. Asset Fee is in addition to internal fund expenses. Stated Asset Fee applies to current contract year beginning January 1 and may vary from prior year's asset fee. Fund performance is reported net of the prior year's Asset Fees in effect on 12/31/2013. Prior year's Asset Fee was 0.05%, or 0.45%. Breakpoint: Fee is modified annually based on total assets in the plan. Capped: No Exchange Fee Amount: 0 When the Fee Applies: At the time funds are withdrawn How the Fee is Computed: N/A Fee Waiver: If the fee is submitted hardcopy a $6 fee will apply. The fee is waived if exchange is processed by web or voice response unit. Fund performance is not reported net of this fee. Breakpoint: NA Capped: Yes Participant Recordkeeping Charge Amount: $4.00 When the Fee Applies: Annual Fee divided by 12 and billed quarterly How the Fee is Computed: Flat Dollar Amount Fee Waiver: None. Fund performance is not reported net of this fee. Breakpoint: Capped: Yes







    Or CalSTRS


    Administrative Fee Amount: 0.25% When the Fee Applies: Annually How the Fee is Computed: Percent of Annual Assets Fee Waiver: The 0.25% Administrative Fee is charged on a quarterly basis (0.0625% quarterly). Breakpoint: Capped: Yes Self Directed Brokerage Account Fee (Optional) Amount: $50.00 When the Fee Applies: Annually How the Fee is Computed: Flat Dollar Amount Fee Waiver: Breakpoint: Capped: Yes Fully managed account services provided by Voya Retirement Advisors (Optional) Amount: 0.65% When the Fee Applies: Annually How the Fee is Computed: Percent of Annual Assets Fee Waiver: This is an optional service offered for those individuals who prefer to hire a professional to manage their Pension2 account. If a participant decides to not partake in the fully managed account service option, there is no fees or charges for investment advice. Breakpoint: Capped: No


    Any help to decipher all of this would be great. Thanks for any and all help!




  2. Hi Broski,

    Welcome. Do you live in California? If you do, CalSTRS Pension2 is an excellent 403b choice and if its not available to you (only California teachers), call CalSTRS and inform them.

    I agree with you and Tony, debt or no debt, everybody should start saving something for long term retirement planning. You can choose Vanguard or TIAA CREF now for the regular Roth IRA.

    You will have to literally write a check and send it to Vanguard or TIAA CREF. Open up an account and let them know.

    We know the over whelming confusion that the choices offer. the insurance industry does that purposely, with over the top choices. The district is not giving you so many choices. Its the insurance industry and the corruption with the state insurance commissioners office. Our state commissioners offices DEMANDS that districts must sign up every insurance company that signs the IRS and other agreements. The list is not your districts, its the state bullingly its way on all districts and all Calfornia teachers. And there is nothing we can do until enough teachers demand changes. Thank goodness you got the message early in your career by the sales pitches to IGNORE ALL, and I mean ALL insurance products!!!!!!!!!!!!!!!!!!!!!!

    Lets keep the discussion going. Find out about Pension2, I think they changed the name BTW. And start that Roth IRA with Vanguard or Tiaa CREF. IMO those are the only two companies that have the ethics and low costs that I value.


    I am in California. That is great news I will def look into that! So are you recomending I have a 403b through Calstrs pension 2 and also have a roth IRA open as well? Any adivce at which I should contribute more too? Thanks for all the help. Yeah I email the company that I got signed up for and they start going off on all of the benefits and what not, such a joke. Luckily I can pull my money out within 60 days of opening the account so I won't have to pay a fee or anything.

  3. Dave,


    Just curious. I agree he should do the Roth IRA first since his plan might not have the best choices but why are you against a teacher starting a 403B ? If the choices are good and the costs low would it be advantageous to be in a 403b to reap the benefits of tax sheltered compound growth?




    P. S. to Broski. I wish as a first year teacher I was as astute as you are. I might have avoided all the mistakes I made early on. Broski welcome to the site and we hope you will continue to post questions and insights. I too love your post title. It shows the right attitude!!!

    Its o.k to be a little lost. You are asking the right questions.

    I guess my question to you is how do I know if I have good choices? Vanguard isn't one of my availible choices but I have access to vanguard funds through some of my choices if that makes sense. I've combed over the compare403b and I think i'm to the point where its becoming obsessive. I am only astute as my instinct told me somethign wasn't right with the people I met in the lunch room, then I found 403b wise and boom. Spent a few hours reading up and now I at least feel like I'm starting to understand all of this lingo. Really a lot to take in and I don't understand why a district would give you so many choices, really makes it a headache trying to go through and find the best one.

  4. Love the title to your post!!


    As a fan of Reddit myself, their r/personalfinance sub has some good advice. Until today - don't do a 403(b).


    As a first year teacher, you should not be using a 403(b) unless it was a Roth 403(b). Even then, the Roth 403(b) expenses would be hard to justify against a Roth IRA.


    Here's what I would do in your situation (and if I could talk to my wife 9 years ago when she was a first year teacher):


    First build the foundation before investing for the future - pay off your consumer debt and get an Emergency Fund. Karma is a bi&*^ when it comes to untenured teachers being let go and even being RIFfed. You'll need cash in case that happens.


    Once you've done that, then look to the future. Choose a well-known custodian (Vanguard, Charles Schwab or Fidelity) and open a Roth IRA. Start investing what you can, with the aim to get to 10-15% of your salary. For now, choose a target date fund closest to your retirement date or a total stock market fund, so the diversification will take care of itself. Until you get to a six-figure balance, you don't need to be too concerned about diversifying between different mutual funds.


    Any questions let me, or the rest of us, know.



    Interesting. My fiance and I have a foundation, been saving up for the past 5 years. We dont' have any debt. I have a Roth IRA through betterment with a 90% stock 10% bond diversification. .35% fee.


    My fiance and I are hoping to buy a house in a year to two years so that is where the bulk of our income is going to go. I just wanted to get started on a 403b because compounding returns, amiright!


    So from what I can tell you are not a fan of the Pre-tax accounts? How come?


    From what I have been reading you gain a lot by putting pretax dollars in. What do they say, by putting 100 bucks in it only takes 63 bucks off your paystub.


    I'm meeting with a retirement person from my credit union next friday to see what they offer.


    My plan is to start at depositing $100 a month and then up it once we get a house.

  5. I'm a first year teacher so everything is new to me. My Dad had been mentioning that I should look into starting a 403b to suppliment my pension when I retire. I was busy enough with being a new teacher that I didn't think about it. Then one day, there were sandwhiches in the lunch room and these people asking me when I wanted to retire. They said 403b and I thought, hey I need one of those. I scheduled a meeting and met with one of their reps. They started off by showing me where my pension would be by the year I retire and how to make up the difference with the income of a 403b. They talked about how the max I can put into a 403b is 18,000 and asked if I wanted to start puting in 1,800 a paycheck. They knew I was a first year teacher yet somhow they thought I could live off whatever was left after taking 1,800 out of my montly paycheck! Crazy. I say I can commit $100 to start and then go from there. They show me the return projection and something seemed off. Then I looked at what the projected return was and it was a crap 3%. Turns out it was an anuity. After having to email and call to get the thing cancled now I am trying to plan what to do next. I have so many options that my District allows but I'm not exactly sure where to start. I have a meeting with School's first credit union as they have a mutual fund option through nationwide. The fees are pretty low but I'm still a little lost.



    Portfolio Rebalancing
    Managed Account Services


    Managed Account Services



    Asset Based Plan Administration Fee



    Asset Fee

    .04% or, .44%


    Participant Recordkeeping Charge

    Annual fee flat $4.00


    There are so many funding options. Not really sure what to do. I don't know if any of you have heard of reddit but they have a personal finance subreddit and this was the advice I was given in terms of how to diversify my mutual fund.


    For 403(b) funds, I would use:

    • 54% US stocks:
      • 81% DFA U.S. Large Company Portfolio 0.08% (DFUSX )
      • 19% Vanguard Small Capitalization Growth Index Fund Investor Shares 0.24% (VISGX)
    • 36% Nationwide International Index Fund Class A 0.7% (GIIAX)
    • 10% Dodge & Cox Income Fund 0.43% (DODIX)



    Would appreciate any feedback!



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