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krow36

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  1. I'm not sure how you work it into a 1 hour presentation, buy this calculator is fantastic for showing the effect of fees over time: https://www.360financialliteracy.org/Calculators/403-b-Savings-Calculator3 from the American Society of CPAs, or the same calculator from bankrate.com: https://www.bankrate.com/retirement/calculators/403-b-calculator/ You have to run it twice, once with AXA's 2.0% fee, and again with Fidelity's 0.1% fee. Subtract the 2 balances and you get $100,000s difference over not that many years!
  2. I wonder if you should start off with an explanation of how fees effect the balance over time. That would allow you to show the amazing growth due to compound interest when the fees are low. That's the motivator. Some slides could show what this explains: https://403bwise.org/education#fee-impact
  3. This thread may answer your question: https://board.403bwise.com/topic/2232-default-on-403b-loan/
  4. Teach76, I hope you return and tell us more about your district. You need a low-cost 403b because you can’t do an exchange between a 403b and a 457b unless one is with a previous employer. How many years have you been with AXA? The surrender fee is waived after 12 years. Who is your TPA (third party administrator)?
  5. I’ve been spending time helping folks on the FB 403bwise group. Those asking for information and help are the same as those that come here to the forum. The main difference is the numbers. There are usually 5 to 10 threads going all the time, each with a number of posters. Lots of participants and no doubt many lurkers. A lot of district vendor lists get examined and transfers started and annuities exchanged to index funds! Many topics of interest to teachers are vigorously discussed and are wide ranging. Except for the 403b FB group, I don’t do FB. I think the FB algorithm is a disaster for the world. However Dan and Scott’s group has probably helped more teachers in the last month than the forum has in the last few years. It’s success is undeniable! I would hate see the forum go away! It has some advantages over the FB Group. Hopefully both can survive.
  6. It confused me. A relative's Vanguard incoming transfer form had a place for a Med. Sig. but when called they said they didn't require it, that it was up to outgoing American Funds. AF said they didn't need it if the amount was less than 250k. They might have both required it for larger amounts? I agree that a phone calls to the main offices needs to be made.
  7. Tony, I think the medallion signature is usually required by the company "giving up" the funds, not the one receiving them. I would give the surrendering company a call. The money being transferred would be the net amount after the surrender fee is subtracted.
  8. krow36

    Voya

    I think you should start out looking for both vendor's fees in 403bcompare: https://www.403bcompare.com/Vendors/Browse Once you know the fees, you can use this calculator to find the balance over time by running it for each vendor: https://www.bankrate.com/retirement/calculators/403-b-calculator/
  9. I think your understanding that your mother's 403b account can't be rolled into your personal IRA is correct, and that it should have been rolled into an inherited IRA. Apparently the IRA isn't titled as an inherited IRA for your benefit (FOB)? It's unfortunate that this wasn't noticed and corrected immediately, before you took a distribution. It seems like both Vanguard departments, 403b and IRA, are at fault. The experts on this sort of problem are on the Boglehead forum. Alan S. and/or Spirit Rider are often asked for advice by professionals on other forums. Their knowledge of the IRS regulations is encyclopedic. https://www.bogleheads.org/forum/viewforum.php?f=1
  10. I don't see any low-cost 403b vendors on the list. They are either annuity sellers (always expensive) or high-cost mutual fund sellers (high expense ratios and front-end or back-end loads). You can look up the fees on many of the vendors in 403bcompare where any vendor selling to CA public school districts must disclose their fees: https://www.403bcompare.com/Vendors/Browse ING often goes by Voya. Oppenheimer is now Invesco. I would ask HR if they would consider adding a low-cost vendor that offers index funds, such as Vanguard, Fidelity or Aspire. Are you contributing 6k/yr to an IRA, the vendor of which you sign up with on your own?
  11. Are you in a non-governmental 457b where the employees' 457b accounts are held by the non-profit employer, not in a custodial account? If that's the case, I'm sorry, that's tough! I suggest you post your question on the White Coat Investor forum. Those types of non-gov 457b plans are much more common there than here with us school district types. Good Luck!!
  12. pghchrism, welcome to the forum! It looks like the EJ guy has tied up Aspire to some funds he can make a profit from. I'd blame that on the district, although they are probably ignorant of the fact that Aspire self-directed would be most beneficial to their employees. I guess you could take it up with the district, but it might be a fight. The only low-cost vendor on your list is NEA Direct Invest from Security Benefit. The NEA, the national union, has "rented" their name to Security Benefit (SB) for several million bucks a year. SB put NEA on a number of very expensive annuity based 403b plans. Several years ago, NEA arranged for SB to offer a low-cost alternative. It offers a small number of low-cost Vanguard index funds and charges only $35 per year for balances under 50k. It’s based on the internet and does not use a local rep. Repeated phone calls have sometimes been reported as necessary. It’s bare-bones but adequate for those who want very low-cost and can do without handholding. The only NEA Direct Invest funds needed are: Vanguard Total Stock Mkt Admiral, expense ratio (ER) = 0.04% Vanguard Total International Stock Mkt Admiral, ER = 0.11% Vanguard Intermediate-term Bond Index Admiral, ER = 0.07% (a good substitute for Total Bond Mkt Index Admiral fund) You should not use their TR Price target retirement funds as they are too expensive (ER 0.77 to 0.96%). This webpage gives the basics of NEA Direct Invest https://securitybenefit.com/individuals/product/nea-directinvest On this webpage, click on “Enroll Now” to access the steps to get started. https://www.nearetirementprogram.com/nea-directinvest Here’s my interpretation of the Steps: 1. Read over Step 1. 2. Your district will likely require their own Salary Reduction Agreement. Hold off on giving this to your district. 3. Hold off on moving other accounts into this 403b until this account is established. 4. Complete the application form and mail it to SB. If you have questions about the form, ask us rather than trying to talk to SB about it. 5. After about 2 weeks, call if they haven’t contacted you, and inquire about your account’s progress.
  13. If you have income from early 2020, you can contribute to a traditional IRA (not a Roth IRA) for 2020 and lower your AGI by that amount, up to 7k if you are over 50. You can do it for 2020 up until tax reporting day. Just call up Vanguard or Fidelity. There’s an income limit to deductibility of tIRAs, but if you were not covered by a retirement plan with your 2020 job, I don’t think the limit applies. https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-work
  14. Your link doesn’t work: https://www.marketwatch.com/story/want-to-get-more-people-to-save-for-retirement-make-it-the-law-11615990210?reflink=mw_share_facebook&fbclid=IwAR3I74DkDG1Ju83z6y2FZp0OVevVXsIiM8ewD_5iw-0PbzuIWwo-ciOjD1I I don’t think the proposed legislation applies to teachers. It’s for employees who have NO retirement plan. Teachers have a pension , which they are required to participate in. 403b and 457b plans are voluntary unless they are part of the required pension plan. As in a hybrid pension plan.
  15. Hi Amanda, welcome to the forum! The lowest cost vendor on that list is Fidelity. They charge only $24/yr. Their 403b is a custodial account, not an annuity contract. They are internet based, so there are no local reps (salespersons) in the teacher's lounge wanting to do the paperwork for you so they can earn that big commission. Start here on Fidelity’s 403b website: https://nb.fidelity.com/public/nb/ready2enroll/planoptions “Plan Basics” explains their 403b plan and “Investment Options” leads you to the list of all the Fidelity funds. I suggest you use only their index funds, either what’s called a 3 Fund Portfolio like below, or a single Freedom Index 20XX fund, ER 0.12%. 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% The 3 funds or a Freedom Index 20XX give you maximum diversification, which is desirable.
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