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krow36

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Everything posted by krow36

  1. It seems foolish that your non-profit does not have a TPA. Their 2 vendors will pay the per employee TPA fee. Aspire will use part of their $40/yr fee they charge employees to pay TPA fee. They add only 0.15% to low-cost Vanguard or Fidelity funds. Vanguard will collect the fee from the employee and forward it to the TPA. I think it's likely that Vanguard is not interested in being a vendor for a non-profit that has no TPA. I think I would just invest in a Vanguard or Fidelity or Schwab taxable brokerage account. It can be tax efficient if you use stock index funds like the Total Stock Market Index fund. You can organize monthly withdrawals from your bank, so that it's all automatic.
  2. To change a percent to a decimal so you can multiply or divide, move the decimal point over 2 places to the left. So 0.064% = 0.064/100 becomes 0.00064. 😊
  3. Hey Steve, nice work! On your total annual cost, 6.4 Basis Points is 6.4/100 or 0.064%. Did you calculate what it would be if you left out the 2 with no ER? Still very low I bet.
  4. Have you checked your employer’s 403b written plan and confirmed that the 15 year catchup is allowed? Because of its possible complexity, many districts do not include it. If it IS allowed, have you read IRS Pub 57l on it? https://www.irs.gov/publications/p571#en_US_202101_publink1000239722 I don’t think your age at retirement is considered in the 15 year catch up, only that you have had 15 years of full time employment with the same district. Notice that at the bottom of the above link, there is a link to: "Worksheet 1. Maximum Amount Contributable (MAC)" that is used to determine the amount of the 15 year catch up you may be eligible for. You can qualify for both the age 50 6.5k catch up and the 3k 15 year catch up. The latter is used before the former.
  5. Here's a bit more IRS info on the 15 year catch-up. I think you are correct that if you have contributed more than $75k, you are not eligible. https://www.irs.gov/retirement-plans/403b-plan-fix-it-guide-an-employee-making-a-15-years-of-service-catch-up-contribution-doesnt-have-the-required-15-years-of-full-time-service-with-the-same-employer
  6. I can't answer questions about the fees that JC pays. After looking at IPX on 403bcompare (sited above), I would stick with Vanguard and skip Fidelity. The difference in expense ratios of their index funds is minor. I'm assuming you are going to use index funds? A difference of 0.02% on 300k is only $60. Third party administrators like OMNI charge for each district employee that has an 403b account. Somebody has to pay the fee. The expensive vendors agree to pick up the tab because they make a lot of profit on their products. Most districts don't want to pay the fee and are happy to have it taken care of by the vendors. The district's are oblivious as to the high fees that their employees are charged.The low-cost vendors like Vanguard and Fidelity won't usually pay the fee. Vanguard and OMNI have recently worked out an agreement to have Vanguard collect the TPA fee from the employee and send it to OMNI. I don't know how IPX is handling the TPA fee.
  7. OR state 457b plan: https://my.voya.com/einfo/fundinfo.aspx?page=investment_informationfundperformance&cl=oregon&pl=350001PU&domain=osgp.voya.com The Fidelity 457b is incredibly low-cost, assuming you use their index funds. (Their fees are probably so low because they hope you will use some of their expensive funds?) Their funds and fees are the same for their 403b and their 457b. The only administration fee is $24/yr. https://www.403bcompare.com/products/68#/investmentoptions The OR state 457b has an admin fee of 0.17%. That’s certainly not prohibitive, but I don't think anybody beats Fidelity’s 457b fees. The OSGP fund’s expense ratios vary from very low cost to modest. https://www.oregon.gov/pers/OSGP/Documents/Fee-Structure.pdf I don’t know of a reason for working to add the OR state 457b to your district's list.
  8. From reports, they seem to have been somewhat slow in getting the account set up. I'd wait about 2 weeks before calling, but who knows, maybe they've improved their service? Maybe you will be pleasantly surprised? Some posters have had some difficulty getting the district to give them the plan number for Security Benefit's form, but that's something the district has to sort out.
  9. Bashdash, thanks for the testimonial on NEA Direct Invest! Here's my spiel on NEA Direct Invest: The only low-cost vendor on your vendor list appears to be Security Benefit’s NEA Direct Invest. It is internet based, not local rep based. It is a SB 403b and NEA has no direct involvement. There is no local rep (salesperson) to ask about it. It offers a small number of low-cost Vanguard index funds and charges only $35 per year for balances under 50k, no admin fee for balances over 50k. Its phone service has been reported as poor at times. With patience and perseverance, you can get the job done. We can help with any questions. 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 0.99%). 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: Read over Step 1. Your district will likely require their own Salary Reduction Agreement. Hold off on giving this to your district. Hold off on moving other accounts into this 403b until this account is established. 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. After about 2 weeks, call if they haven’t contacted you, and inquire about your account’s progress. 6. After the account is set up and you have internet access to it, you can work on moving your wife's Ameriprise balance to NEA Direct Invest.
  10. Does your district have a low-cost 403b vendor? What state are you in? Many states have a low-cost state-run 457b that is available to school districts.
  11. The May 5, 2021 event is on You Tube: It starts at about 8:42 minutes.
  12. Tony, the link doesn't work for me? Maybe this one will? https://www.nytimes.com/2021/04/02/your-money/financial-literacy-courses.html
  13. Yes, she can move her Ameriprise 403b balance to Vanguard if Vanguard is on the district's 403b vendor list. It's called a contract exchange. Call the Ameriprise 800 help # and ask for their transfer form. Also ask for her surrender fee if she has a variable annuity, which is likely. The annuity probably has an M&E fee of 1.10% and the surrender fee runs for 10 years, starting at 8%, decreasing to 1%. Ugly! You can look up the fees at 403bcompare: https://www.403bcompare.com/products/145
  14. 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!
  15. 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
  16. This thread may answer your question: https://board.403bwise.com/topic/2232-default-on-403b-loan/
  17. 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)?
  18. 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.
  19. 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.
  20. 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.
  21. 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/
  22. 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
  23. 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?
  24. 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!!
  25. 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.
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