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krow36

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  1. A basis point is 0.01%. So a fee of only 0.03% is fantastically low. Because the NYS 457b plan is so large, they have economy of scale. Some of their index funds have ERs of only 0.01%!
  2. When you retire, you will most likely roll the Aspire 403b into a traditional IRA. There is no fee to take a distribution from a Vanguard (etc.) IRA. The $75 transfer out fee will apply and I don't think you should be concerned about that. You'll transfer it ALL out, so it's a one time fee. I don't think it's likely you will be taking distributions from the 403b, but if you need to, you will take them from your IRA. As Ed mentioned, AXA has a surrender fee they levy when you move your balance out. It is usually 5% for the current year and the previous 5 years. You should ask AXA for the exact amount. It depends on how much you contributed in each of those 6 years. Since you are probably paying about 2% per year in annual fees, it usually makes sense to pay the surrender fee and escape the annual fees.
  3. ariel, please start a new thread with this question, if you haven't seen the answer already. It's a good question.
  4. You will find a number of recent threads discussing Aspire and the SB NEA Direct Invest on this forum. For instance: https://board.403bwise.com/topic/7531-ct-vendor-list-for-wife/
  5. The administration fee for Vanguard's K-12 403b plan is $5/month or $60/yr. There is no percentage fee on the balance. If you are interested in getting Vanguard added, it would be helpful if you joined the Facebook 403bwise group where there are a number of posters working to add Vanguard to their district's 403b list. Some have OMNI as their ATP. You can see the link to the group in the stickies at the top of this forum's list of threads.
  6. Thanks for the list. You have 2 possible low-cost 403b vendors. Both options are custodial accounts, not annuity plans. Both options do not use local reps, but use the internet and phone. The easiest to use is Aspire which has good phone help. They allow you to use Vanguard's low-cost index funds. They add 0.15% to the funds' expense ratio, so the total fee would be about 0.20% to 0.25%. There is an administration fee of $40/yr which will cover the TPA fee to OMNI. The other option is Security Benefit's NEA Direct Invest. It is lower cost as the only fee is $35/yr if the account balance is less than 50k. It has 8 low-cost Vanguard index funds available. SB is known to have erratic phone service for NEA Direct Invest and it takes patience and probably persistence to get the account established. Once established posters report being satisfied with this option. It's possible that you could get Vanguard added to the 403b vendor list. OMNI P3 is allowing it to be added. You would need to contact Vanguard, OMNI and your district HR people.
  7. Lucy215, welcome to the forum! The 10% penalty your rep mentioned only applies if you take your money out of the 403b, that is cash it out. It does not apply is you transfer your balance to another 403b vendor that is on your district's vendor list. Can you copy and paste your district's 403b vendor list? You can get the list from the district's HR department or from the district's third party administrator (TPA). Sometimes just googling: "your district's name, 403b plan" will get you to the list.
  8. Maybe I'm confused but it seems to me that they are just saying that vendors cannot be excluded if they qualify. In other words, districts cannot put the plans out for bids and control the number of vendors. I don't see anything about excluding Vanguard or Fidelity, but all I've read is your quote. I think CA and WA have such a state regulation currently. All thanks to the powerful insurance lobbies which have lots of money to give to the elected representatives.
  9. I think Tony is correct--she can roll the VOYA 403b balance to an IRA. She does not have to invest the money with VOYA. This is much better than how Tony's district treated him. I don't think anyone can restrict the rollover to TIAA. If she is retired, the IRS permits the 403b to IRA rollover to a vendor of her choice.
  10. Thank you ChrisC for providing the fund list for Fidelity's 403b plan. Because they have been lowering the ERs trying to catch up with Vanguard, they have introduced new share classes of the funds listed in 403bcompare. So I think these 3 funds are what we would recommend currently: Fidelity® Total Market Index Fund, FSKAX, ER 0.015% Fidelity® International Index Fund, FSPSX, ER 0.035% Fidelity® U.S. Bond Index Fund, FXNAX, ER 0.025% JT1906, if you use these 3 funds for the majority of your 403b, I think you will do very well. You will be completely diversified and super low-cost. You haven't said what your "other" funds were, but I think it should be the same. You've said you are in your mid-30s and plan to retire at 60, so you have many decades before you need your retirement money. If you can't resist trying to beat the index, I would confine it to a small percentage, ideally 5% or less. Max 10%? Rebalancing every year should not be very time consuming. As a suggestion, you might consider 60% Total MKt Index, 20% International Index and 20% Bond Index.
  11. I'm puzzled. The Fidelity index funds I listed are from 403bcompare. These are the funds that Fidelity submits to the 403bcompare site run by CalSTRS, the CA teacher's pension authority. https://www.403bcompare.com/products/68#/investmentoptions I think Fidelity may restrict the index funds available in their K-12 403b accounts to those funds and not allow the very lowest cost alternatives?
  12. JT1906, it's been a long time since I had a Fidelity 403b account so I'm not familiar with their current website. If you just want to learn about a particular index fund, just google the ticker (the fund's 5 letter symbol). If you want to know how you go about selecting them for your account, perhaps you should give the Fidelity help line a call?
  13. I’m glad you are now contributing to a Fidelity 403b! That’s great. The funds you’ve selected are not the ones we suggested back in Oct 2018: https://board.403bwise.com/topic/6938-reputable-403b-houston-area/ We are big fans of either using a target retirement fund, or a 2 or 3 fund portfolio using the “Total” index funds. Fidelity’s Total Market Index fund is broadly diversified and contains all the market segments that you have selected. The segments you’ve selected are more risky than the total market index funds. You can read about the 3 Fund Portfolio here: https://www.bogleheads.org/wiki/Three-fund_portfolio You can read about index funds here: https://investor.vanguard.com/index-funds/what-is-an-index-fund The funds you’ve selected have a much higher weighted expense ratio (ER). Have you looked up the ERs? What is the 49.05% of “Other”? The higher ERs will reduce your return over time. I think you would be better off using the funds below (which are those suggested by Ed). Total Market Index Premium, FSTVX, ER 0.02% International Index Premium, FSIVX, ER 0.05% US Bond Index Premium, FSITX, ER 0.03%
  14. krow36

    Helping a Teacher

    ChrisC, when you talked to Security Benefit, did you ask for the plan number for NEA Direct Invest, or for Security Benefit? If the former, maybe there is not a number for NEA DI, only for SB?? Likewise, the TPA doesn't have a plan number for NEA DI, only for SB? Maybe each vendor on the list has only one plan number. Of course if the above is correct, it probably means that either SB is being intentionally obtuse, or their phone reps are just incompetent. The plan ID number problem has been reported by other posters. I just checked the TPA website for my old district, and there is only a single plan # for each vendor, NOT a # for each plan of each vendor. https://www.ncompliance.com/guest_employervendors.aspx?EmployerID=64
  15. krow36

    MHolt

    WA teachers are fortunate to have the WA state-run 457! Only about half the states make such a plan available to teachers. Of course in addition, your district may have a low-cost 403b plan you can use. Some 403b plans (Vanguard and Fidelity) are even lower-cost than the WA state 457. Using both plans can be very useful for two income couples.
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