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  1. krow36

    457 Mass Mutual

    tnewin, welcome to the forum. Sorry for the delay in getting a reply to your questions. I'm traveling in Canada with only rare wifi. I suggest you ask further questions on the 403bwise forum, as this 457 forum doesn't get near as much attention. Folks on both forums that have experienced what you are dealing with. The first thing you should be aware of is that 457 plans (like 403b plans) can be either annuity based or mutual fund based. You should avoid the much more expensive annuity products. On MM's fees and ERs, you'll have to dig it out from the rep. He should refer you to online verification of the fees. I would strongly recommend that you do not sign up for anything at the meeting with the advisor. Just get information. Are you contributing to a 403b and maxing it? If not, that would be a good idea before using an expensive 457. Are there low-cost vendors for the 403b? Adding a 457 vendor usually involves talking the HR office and any third party administrator. What state are you in? About half the states have state-run low-cost 457 plans that are available to school district employees. If your state does have such a 457 plan, it's often relatively easy to get it added to the vendor list. Any questions are welcome! We all started at an elementary level and most of us have lost a lot of money in the process of investing. Most of us are teachers, retired teachers or teachers' spouses.
  2. If SB is not on your district’s vendor list, I think you can’t use SB’s NEA Direct Invest. It sounds like OMNI is giving you the runaround IF SB is on the vendor list. GWN should not be involved?
  3. That’s great that you are set up with Fidelity! You have probably figured out that if remaining SB money is charged an average of 3%, you might be better off paying the surrender fees. Thanks for the update.
  4. You could transfer your 403b account with SB to a Vanguard 403b if Vanguard is on the list. What kind of account did you open at Vanguard? IRA, taxable Individual or 403b? You'll get advice here from other retired and working teachers. This website maintains a list of fee-only Certified Financial Advisors that have been checked out. It's at the top of the forum topics
  5. Because of the ongoing fees of the SB variable annuity (VA), I don't think there's a reason that is good enough to hang on to it. I would guess that you are paying at least 2% per year in fees. Every fund has an expense ratio (ER) and your VA probably has a "mortality & expense" fee of about 1%. By transferring your variable annuity to the SB NEA Direct Invest, your only fees will be the Vanguard Admiral class index fund expense ratio of about 0.05%. That's about $4,100 for the VA, and about $104 for NEA DI, every year! Do you know the surrender fee schedule? If the fee varies over the 9 years, it's probably a rolling surrender fee. That means that last year's contributions might have a 9% fee, and contributions made 8 years ago might have a 1% fee? You really need to know the total surrender fee in order to decide whether to pull the band-aid off and transfer it all, or just transfer that amount that is surrender fee free. You can call SB and ask for this info.
  6. I don't think the @ does anything on this forum, although I could be wrong. A PM generates an email on this forum, and the BH forum works the same way. A quote generates a notice in the upper right corner, but only if someone is checked in.
  7. It looks like the OP last checked in on Jan 24. Maybe you should try a Private Msg which will generate an email?
  8. Sorry I have no experience with your situation, but I'll give your thread a push. In general I would rank your retirement ahead of your child's post-grad schooling. Is your 403b plan with a low-cost vendor? Are you invested with say at least 50 to 60% in equities, so that your account is growing significantly? By withdrawing 24k, you will slow the account's growth rate won't you?
  9. Of course it's legal. Their previous 403b fee was $25 per fund per year I think, which could easily add up to more than $60. There is now no per fund set fee, just the $60/yr and each fund's low expense ratio. Their ERs are still between 5 and 10 times less expensive than the industry's average. Either fee schedule is a bargain. They have added a Roth 403b option and have Admiral class available. Granted, the $60/yr fee is a high percentage of a $10,000 account balance (0.6%), but is only 0.06% fee on a $100,000 account balance. Maybe that will help motivate you get your 403b balance up here! That's how you "can fight it".
  10. Yes, another thread!!? I'm loosing it! My apologies. I'm glad to learn about avoiding the 10% withdrawal penalty for 6 months after April 15. So the 10% penalty is because you are under 59 1/2? And the 6% is the penalty for withdrawing gains from a non-qualified Roth IRA, meaning your first Roth contribution is <5 yrs old. Is that right?
  11. If the NEA Direct Invest plan offered low-cost Vanguard target date funds, I think I would agree with whyme. However, unlike the Lincoln plan's Vanguard TR funds, NEA DI's target date funds are TR Price actively-managed funds with ERs between 0.79% and 0.97%. Suggesting them would conflict with the very low-cost index fund message. None of the links seem to work?
  12. I think you've done a great job, sticking to the essentials. Have you considered placing the "PLEASE NOTE:" after the plans? The LI PDP could include a comment: "This platform is also available for a 457 plan for no additional annual fee." I wish Dan would include an example of lower fees, at least as low as 0.09%, in the bar graph. Of course the average Vanguard fees for a 3 fund portfolio is probably about 0.06% or less? The "average index fund" fees have probably come down since the graph was made? In any case, a difference of over $200,00 should serve to get their attention. In the paragraph below the graph where you introduce the 2 plans, maybe you should mention that Vanguard index funds fees are below average, around 0.05% to 0.10%. That would tie the graph to the reason the 2 plans have outstandingly low cost. Is the LI PDP annual fee $60 or $35 in NJ? Or does it vary? Nitpickings: Make all 403b with small b. " " around the NYT article title. ". . . a rep from either these companies. . ." "The plan gives . . ."
  13. Unfortunately I think filing an extension on your 2018 return will not allow you contribute to an IRA for 2018 after April 2019. And: I was also under the impression that an extension allowed an IRA contribution so a relative I help missed out on a contribution for 2018. A contribution to their taxable account for retirement was accepted as next best.
  14. Perhaps you could slip in that having access to these two plans is the envy of countless K-12 employees in districts across the nation that have no low-cost mutual fund based option?
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