Jump to content


  • Content Count

  • Joined

  • Last visited

Community Reputation

0 Neutral


Recent Profile Visitors

3,486 profile views
  1. We are 40/60 stocks/bonds and are down 10.2% for the quarter. Haven't rebalanced yet, procrastinating I guess.
  2. I agree with MNGopher that starting to contribute to your new Vanguard 403b account is the first step. I think I would go ahead start the transfer process. Yes it's a gamble but you can expect the market to do lots of ups and downs in the next few months, maybe years. Maybe I'm an optimist but I think that in a few weeks or month, when your AXA account is turned into cash, the market will still be down, which is what you want. I expect the market to be down through 2020. Of course I could be all wet, but . . . . . . .
  3. We’ve been retired 28 years, mostly with an asset allocation of 40/60 with 5% bands before rebalancing. During the last year it’s crept up to about 44/56. As of tonight (Mar 12), it’s slid to 38/62. If it gets past 35/65, I plan to sell some bond funds and buy stock funds to rebalance. We are only pulling out about 2% which includes RMDs, so the downturn is not very threatening, so far anyway. Fingers crossed!!
  4. I agree with you Tony!
  5. I agree with whyme! I hope you hang in there! I rely on the NYT, Seattle Times, NPR, The Newshour etc. for what's going on in the world. We don't have cable, just rabbit ears, seldom watch anything other than the public tv station.
  6. Yes, I think you should stop contributing to the National Life annuity. You should check out you district’s 403-b vendor list. And post it here. Contributing to a Roth IRA is always a good option. Do it directly with Vanguard or Fidelity. Hopefully one of them will be on the district’s 403b vendor list!
  7. Ohio3, welcome to the forum! You should investigate TIAA. Although it’s an insurance company, their variable annuities can be fairly lower-cost. The management fee for the K-12 TIAA 403b is 0.0% to 1.0%, so you need to find out their fee for your college. For the K-12 plan, here is no mortality and expense fee, usually over 1%, and no surrender fee, which are standard variable annuity fees. Check out: Equity Index, ER 0.26%, TIAA-CREF International Equity Index Fund (TRIEX), ER 0.31%, TIAA-CREF Bond Index Fund (TBIRX), ER 0.37% (or TIAA Traditional Annuity, ER 0%). https://www.403bcompare.com/products/154#/investmentoptions
  8. It looks like that the rep only wants to sell you an annuity 403b plan. Whether AIG would allow him to use their Group Mutual Fund Product is another question. He didn't answer your question about the custodial account, did he. You might play with him and write again that you are only interested in an AIG custodial (non-annuity) 403b account?
  9. OK, good luck. I think you are doing great to max out your Roth IRA, and investigating the 403b and 457b plans. The more reading you can do on the huge advantage of low-cost investing over high fee products, the more determined you’ll be to fix your district’s vendor problem. Here’s some reading material: http://www.nytimes.com/2016/10/23/your-money/403-b-retirement-plans-fees-teachers.html?smid=tw-share&_r=0 This is #1 of a series. You will probably find that the district leadership does not understand the importance of low fees over time. You may have to convince them. You may find that you have colleagues that will join you in your campaign. The 403bwise FB Group has some excellent material designed to show the importance of low fees to colleagues. Be sure and look back and check out the material of Dan Otter, Christopher Nye, Anthony Isola and others. The Teach and Retire Rich podcasts are a great source of 403b and 457b info for teachers. http://teachandretirerich.libsyn.com/page/1/size/25
  10. As for which of your vendors would be best if you HAD to choose one of them, there is one that you could check out. VALIC, now goes by AIG, can offer a custodial account they call their Group Mutual Fund Product (GMFP). It has an Admin/Wrap fee of 0.0% to 1%, determined for each district. You would have to contact the VALIC rep to find out if it’s available and if so, what is the district’s Wrap fee. Even if it is 1%, you could choose 1 or more of their 3 low-cost Vanguard funds, and be much better off than with a VALIC annuity. There’s no surrender fee with the GMFP. I don’t know if they offer it in their 457b or not. The rep would much rather sell you one of their annuities because they get a much bigger commission with them. So you might have some persuading to do? Don’t sign anything until you discussed it here and in the FB Group. https://www.403bcompare.com/products/110#/investmentoptions If you succeed in getting one of the low-cost 3 vendors in the future, you can then transfer your VALIC balance to them.
  11. Your district may use a Third Party Administrator (TPA) to help administer their 403b and 457b plans. The TPA may be able to tell you if they think you can add a vendor. The TPA administers the vendor list, but it’s up to the district whether another vendor gets added. A number of posters in the 403bwise FB Group have succeeded in adding either Vanguard, Fidelity or Aspire, any of which would be a huge improvement over your current vendors. The FB Group includes Scott Dauenhauer, a CPF, Anthony Isola, CFP, both professionals donating their time and expertise to help teachers get low-cost vendors. They are leaders in a national effort to reform the K-12 403b scene. Plus there are lots of posters in the Group that will offer their experience. You can learn a lot about what you are dealing with by reading older threads on this forum and on the FB Group website.
  12. Yes, the link now works. It looks like all your district’s vendors sell only annuity based 403b and 457b plans?? At least the district summary does not indicate that a custodial account plan is available. It’s often possible to get school districts to add a low-cost custodial account vendor. It can take some effort, but it would be a huge improvement for all the district employees. There is a Facebook 403bwise Group that has been effective in helping teachers add low-cost vendors and I suggest you join. https://board.403bwise.com/topic/7404-please-join-and-post-on-our-facebook-group/ You can look up your vendors on 403bcompare. The website is run by the CA pension system and all vendors are required to post their fees and funds. Vendors plans are offered nationwide. https://www.403bcompare.com/Vendors/Browse For example: Great American annuities sold in CA, probably also in GA: https://www.403bcompare.com/vendors/1096#/productlist You do NOT want an equity indexed annuity! It is the worst kind of annuity in my opinion. Here’s a NY Times article discussing the equity index 403b plans sold to teachers by National Life Group: https://www.nytimes.com/2016/10/29/your-money/403b-teachers-annuities.html 403bwise’s Scott and Dan discuss equity index annuities in this Motley Fool interview. https://www.fool.com/investing/2019/10/13/why-403b-plans-are-so-awful-so-often.aspx A variable annuity is probably a better choice than a fixed annuity, but both are very poor compared to a custodial account. They allow you to use mutual funds although the expense ratios can be high. VA’s have a high fee usually called a mortality and expense (M&E) fee of up to about 1.3%. They also have surrender fees of up to 10% that last up to 10 years, sometimes declining. A fixed annuity usually has a guaranteed interest rate (often 1%) with a current rate that is reset every year. Current rates seem to be maybe 2% these days? Although there is no M&E fee, the return on these annuities is too low and doesn’t allow participation in the stock market. Are you contributing to a taxable account for retirement at a low-cost vendor such as Vanguard or Fidelity? Don’t discount the value of total market index funds in a taxable account!
  13. A great story! GO 403BWISE!
  14. OK, it sounds like you've done the math. Pensions + social security + large deferred-contribution accounts can add up to a high tax bracket in retirement after age 72.
  • Create New...