Jump to content

krow36

Members
  • Content Count

    713
  • Joined

  • Last visited

Everything posted by krow36

  1. Using funds in the taxable account for daily expenses while maximizing deferred contributions is frequently recommended. It assumes that some of the taxable assets can be used without large capital gains, which is often the case. I believe it’s an accepted way of moving taxable assets (your earnings) into tax deferred accounts.
  2. I don’t believe there’s a single fix that’s immediately applicable all situations. It’s a very complex problem with many interacting facets, including especially a powerful insurance industry making big profits on selling annuities, but also uninformed district administrators, uninformed teachers, federal regulators and Congress not willing to fix the problem, National, State and local teacher unions not willing to push for solutions that benefit teachers, third party administrators, etc. The podcasts by Teacher Dan Otter and Certified Financial Planner Scott Dauenhauer do a great job of discussing many of the problems with the 403b’s available to K-12 teachers, and a number of solutions that are working. http://teachandretirerich.com/podcasts/ I think it’s great that you are working on this problem. The more attention it gets, the better! I’m a long retired teacher trying to help, so yes I’m very interested in your project. Good luck with getting Vanguard on your district's provider list!
  3. I’m curious about how a great state 457b plan like NY's works for teachers. Does the school district have to formally accept the plan? Can the district refuse to participate? Does the plan cost the district? Is there a TPA involved? I wondered just how inexpensive a complete portfolio could be using this plan. Using the Vanguard Institutional Plus shares and the Int’l Equity Index Portfolio, I tried out an AA of 60/40 stocks/bonds, with US stocks 4/1 in 500 Index/Small Cap Index, and 20% of stocks in international. Rounding off a bit, it is: 40% 500 Index, 10% Small Cap Index, 10% Int’l Index, and 40% Total Bond Index Vanguard Institutional Index Fund, Plus Shares (VIIIX) (500 Index), ER 0.02% Vanguard Small Cap Index Fund, Institutional Plus Shares (VSCPX), ER 0.06% International Equity Fund, Index Portfolio, (no ticker) ER 0.20% Vanguard Total Bond Mkt Index Fund, Institutional Plus Shares (VBMPX), ER 0.05% In this 40/10/10/40 asset allocation, the weighted average ER is 0.054%! There’s a “participant fee” of $20/year. Also there's an asset-based fee of 0.045%/year on account balances more than $20,000 ($9 fee) and less than $200,000 ($90 fee). Why wouldn’t any teacher in NY state use this 457b plan before considering a 403b plan? What am I missing?
  4. This performance report of the NYSDCP for 2015 states that the expense of Vanguard Inst'l Index Fund - Plus Shares (VIIIX) is $0.20 per $1000 invested, which I think works out to an expense ratio of 0.0002%. https://www.nysdcp.com/tcm/nysdcp/static/NYSDCP_IPR.pdf?r=1 Vanguard says that the ER of VIIIX is 0.02%. The NYSDCP says the ER of VIIIX is 0.02% here: https://www.nysdcp.com/tcm/nysdcp/static/BrochureInvOptions.pdf?r=1 An ER of 0.02% is amazingly low! 0.0002% looks like a mistake? Or am I missing something here?
  5. davegrant82, I'm curious why you favor Aspire ($40/yr plus 0.15% added to a VG fund's ER) vs the MN DCP (0.05% added to a VG fund's ER)?
  6. The MN DCP, a 457b plan looks good. They have a Roth 457b. https://www.msrs.state.mn.us/web/employers/home https://www.msrs.state.mn.us/documents/10179/37994/Performance+Report/28449bf0-dbe5-4cd4-ad57-9e23ec8d2ea7 The Aspire 403b is also a good one.
  7. On looking more closely, I think the SC 457b plan is not for teachers. If that's not the case, please post.
  8. You are right that the Roth (and the traditional) 403b can only be contributed to through payroll reduction. You can choose your provider for your Roth IRA. You can contribute to both a Roth 403b and a Roth IRA, 18k and 5.5k per year, respectively. You can contribute to your 2015 Roth IRA up until your tax day. There's no way you can make a payroll deduction on salary you received in 2015--you've already received it, so no Roth 403b contributions for 2015 are possible in 2016.
  9. OK MoeMoney, I didn't realize that you had access to a 457b. That's great. Aspire looks like a better choice for an aggregator as they only charge 0.15% plus $40, compared to Mutual Inc/Plan Member Services' 0.35%. I think they both function as aggregators and third party administrators. The OMNI P3 website lists both of the above as well as GWN and others as aggregators. Does your district use the OMNI P3 program? You quoted your district referring to OMNI? https://www.omni403b.com/p3.aspx
  10. "Our district 403b list includes the usual: AXA, MetLife, Oppenheimer, Legend Group and Voya. It also includes GWN/Employee Deposit Account and Mutual Inc/Plan Member Services. I'm confused on what the last 2 are. It sounds like they might be aggregators, like Aspire. I am actively working with Omni, our business leaders to add Aspire but in the meantime, I'm trying to do my research on how GWN and Mutual Inc work. Is anyone familiar with either of them? Thank you." MoeMoney, have you checked out Mutual Inc/Plan Member Services? I think it is an aggregator and of their many 403b options, Planmember Direct looks promising. They have a number of Vanguard Admiral class funds available. For instance: VTSAX Total Stock Mkt ER=0.05% VTIAX Total Int'l Stock Mkt ER=0.12% VBTLX Total Bond Mkt ER=0.06% There’s a 0.35% per year Account Service Fee charged that is added to the fund’s expense ratio. So for a total expense of 0.41% to 0.47%, you can contribute to your 403b. I would first contribute 5.5k directly to your IRA every year because you can get those low ER's without the Account Service Fee added on. I think contributions to a 403b are definitely worth making at those higher ER's. http://www.planmember.com/mutualinc/defaulthome2.cfm?pageid=27 Planmember Direct https://pdfs.planmember.com/PDFs/PMPARTNERS_SALESandMARKETING/FloridaModelPlan/PartFactPMDirectFactSheet.pdf Funds available in the Planmember Direct program: http://www.planmember.com/programinfo/Core_Lib_PD.cfm
  11. bdhirsch, can you tell us how your contact with the rep went? What other choices do you have? What do you think of my theory that if the rep was totally uninterested in the SB NEA Direct Invest 403b, then it is more likely to be a good deal for teachers? Another good sign for teachers may be that on 403bcompare.com, SB doesn't have NEA Direct Invest listed with their other NEA backed products? If we bump this thread from time to time, maybe it will attract the attention of a Direct Investor who will give us a report??
  12. Maine teachers are fortunate to have a state 457b plan, also known as a Deferred Compensation Plan, available to them. http://www.mainesaves457.com In some ways it’s better than a good 403b. Mass Mutual offers some very good looking index funds from SSgA, with low expense ratios--about 0.20%. The other 2 have Vanguard index funds with ER's about twice that. http://www.mainesaves457.com/wpcontent/uploads/2016/01/MassMutual_FundPerformance_4Q15.pdf You should find out what other fees might be involved by exploring the website.
  13. FBC——>choose Fidelity*——>look up in 403bcompare——>Fidelity TSM——>Custodial Fee $24/yr + 0.07% for TSM FBC——>choose CALSTRS——>look up in 403bcompare——>Vanguard TSM——>Admin Fee 0.25% + 0.04% = 0.29% for TSM * Poway Unified is allowed to choose Fidelity as per footnote on FBC’s Approved Vendor List. FBC's Compliance Fee of $18 per year for accounts held through any FBC vendor will apply to both Fidelity and CALSTRS. http://www.fbcretire.com/fees.htm If the above is correct, I think you would be better off going for the Fidelity Spartan index funds than the Vanguard index funds. Of course many teachers have only very expensive choices and would be delighted to have Vanguard funds with ER’s of 0.29%. You luckily have a choice, and paying 4 times as much for the same thing doesn’t make sense to me. It will be interesting to know what FBC says when you talk to them (after your end of quarter chores!).
  14. I wonder if the Fidelity 403b through FBC avoids the 0.25% fee that CALSTRS Pension2 adds to all their funds? Fidelity has a fee of $24 per year per account. FBC has a Compliance Fee of $18 per year for accounts held through any FBC vendor. I haven’t been able to find where using Fidelity through FBC results in 0.25% being added to Fidelity’s expense ratio. What have I missed?
  15. I see where I made my mistake with 403bcompare—I used Vanguard for the vender rather than CalSTRS Pension2. You are investing through Pension2, not directly in a Vanguard 403b. I also got the tickers wrong! It’s great that you can use the Institutional class of TSM ER 0.04% and Admiral class TBM ER 0.07%! After more rereading, I now think that the 0.40% for Vanguard I mentioned last post only applies to Vanguard funds used in the Nationwide 403b Program. That’s a relief! That FBC “Schedule of Fees” page is very poorly written in my opinion. Voya Fixed Plus III is a Stable Value Fund that guarantees a minimum rate of interest and may pay more. It can be used as a bond alternative. It’s less risky than a bond fund which can loose value if interest rates rise. This one is paying mostly more than 3%. http://www.calstrs.com/sites/main/files/file-attachments/voya_fixed_plus_iii.pdf It does seem that the process that teachers often have to go through to invest in a good 403b is much too complicated. The shame is that most investors, not just teachers, don't figure it out and opt for the rep/broker to do it for them! Yes, I'm grateful my report card days are behind me.
  16. I don't think you will have access to VITSX Social Index Admiral shares, or to VBTLX Total Bond Index Admiral shares. You do have access to their Investor class equivalents, VFTSX, ER 0.25%, and VBMFX, ER 0.20%, respectively. It's well known that Vanguard Admiral class funds are not usually available in their 403b accounts. I believe the same is true with Vanguard's other employer-based defined contribution plans such as their SEP IRA and SIMPLE IRA plans. (edit: see my next post) Your district requires you use FBC Salary Reduction Agreement and they mention an additional 0.40% on Vanguard funds? http://www.fbcretire.com/fees.htm (edit: I think the 0.40% only applies to Vanguard funds in a Nationwide 403b program.)
  17. OK on your interest in the Pension2 403b, using Vanguard index funds. It looks to like both the Pension2 403b and the FBC 403b have low enough fees and good index funds to choose from. Fidelity's Spartan Index funds are the equivalent of Vanguard's broad based low ER index funds, and are highly respected. Sticking to the FBC 403b option for the moment, I don't think that the employee pays the fees we see on the TPA Fee Disclosure statement. It does say that the first fee is paid "by the provider" to the TPA, but doesn't really say who is paying the 0.02%? I suspect it comes out of the provider’s 0.25%? Maybe other posters will let us know. I found this explanation of the Easy Choice Portfolios, showing the 7 different funds, held in different percentages based on risk level and time to retirement. http://www.calstrs.com/sites/main/files/file-attachments/easy_choice_pdf_12_2_rev.pdf Your choice of the Vanguard index funds in Pension2 is probably what I would choose also. Our portfolio is 93% Vanguard, mostly index funds.
  18. I have no firsthand knowledge of how you should proceed, but I’m a retired teacher with some spare time and so I’ve tried to figure out how you would sign up for a good 403b. As mentioned above, you will use the FBC Salary Reduction Agreement form that your district gave you the link to: http://powayusd.com/PUSD/media/PSS/payroll/paySRA.pdf Under 403b, below the Nationwide 403b line, you should write in Fidelity. Fidelity’s VID is 1133. I’m guessing that the “Code #” is 25000 which probably indicates a 403b? This form is handed in to your HR office. You know you can use Fidelity because on the FBC DCP website, under “Approved Vendor List”, you see Fidelity listed. The footnote indicates that Poway Unified has approved using Fidelity. (http://www.fbcretire.com) The all-important FBC fees: http://www.fbcretire.com/fees.htm record keeping fee ~$13 per year statement fee $3 per year administration & wrap fee 0.25% If a Spartan Fidelity index fund has an expense ratio of 0.10%, the total ER would be 0.35%. Using 403bcompare and looking up Fidelity, their 403b custodial fee is $24 per year. https://www.403bcompare.com/Employee/Products/MutualFund/Fees.aspx?pid=4534 I think the total of all the fees is reasonable. I think the Fidelity application form to establish a 403b with them is here: https://workplacecontent.fidelity.com/bin-public/070_NB_PreLogin_Pages/documents/403b_AccountAppcombined_446148_011316_EP.pdf If I’ve screwed up the process, or left out important stuff, hopefully others will help out.
  19. I think it's important to include the fees of the 457b plans. Here's a link to the AR 457b plan fees. http://www.icmarc.org/prebuilt/apps/downloadDoc.asp Can't get this link to work? Will fix it later. Here are the ER's for the Arkansas 457b: https://myplan.voya.com/einfo/pdfs/forms/govcr1/711001/newsletter_4q15.pdf
  20. Tony, thanks for Virginia's DCP. I'll do an edit and include it in the original post. I posted this thread hoping that others would contribute. I stumbled on the state 457b plans while looking for alternatives to teacher’s often very poor 403b plans. Please post additional info or corrections. I recently noticed a BH poster with a user name of physicsteacher and noticed that she teaches in Arkansas, and she has mentioned that her 403b is not a good one. I looked for a Arkansas 457b and discovered there does seem to be an alternative to a poor 403b for AR teachers. Are teachers in Arkansas state employees and eligible for the AR state 457b DCP? It looks like it. http://portal.arbenefits.org/Pages/default.aspx plan information https://myplan.voya.com/einfo/planinfo.aspx?page=plan_informationintroduction&cl=govcr1&pl=711001PU&domain=myplan.voya.com up to date fund choices and ER’s, including 3 great Vanguard index funds. https://myplan.voya....letter_4q15.pdf Here’s a BH post on the AR DCP for docs. https://www.bogleheads.org/forum/viewtopic.php?t=112676 I’ll edit my OP to include the AR DCP. How about posting the info on your state’s DCP if it is available to teachers, or others?
  21. I’ve been collecting state 457b plans and their links for a few months. Today I stumbled on to a 2012 post by Joel proposing that a list of state plans would be useful addition to the 403bwise forum. He was thinking mainly of state 403b plans but suggested there should be a list for 457b plans as well. http://board.403bwise.com/index.php?showtopic=5419 Were lists of state plans established on the forum back in 2012? Do you think it would be useful? It seem like the question comes up on this forum and on the BH forum fairly often. What do you think? 457b STATE PLANS AL DCP: http://www.rsa-al.gov/uploads/files/RSA-1_Member_Handbook_bookmarked.pdf http://www.aasbo.com/uploads/7/4/4/7/74479591/kit_gallup_aasbo.pdf http://www.rsa-al.gov/index.php/members/rsa-1/rate-of-return/ http://www.rsa-al.gov/index.php/members/rsa-1/historical-returns/ AR http://portal.arbene...es/default.aspx https://myplan.voya....myplan.voya.com AZ https://www.arizonadc.com/iApp/tcm/arizonadc/about/index.jsp I don't think this 457 plan is available to AZ teachers. CA DCP and 403b: CALSTRS Pension2: http://www.calstrs.com/sites/main/files/file-attachments/easy_choice_portfolios.pdf DCP and 403b: CALSTRS fees: http://www.calstrs.com/sites/main/files/file-attachments/p2_fee.pdf CO DCP and a 401k are available to K-12 employees statewide https://www.copera.org/programs/peraplus-401k457-and-pera-dc-plan-information CT There are a few districts on the list but it also seems that State employment is required (see application form)? Can other districts be added to the list? http://www3.prudenti...etail-page.html http://www3.prudenti.../your-plan.html IA Iowa state 403b plan: https://das.iowa.gov/sites/default/files/hr/ric/403b/documents/AAG_ERE.pdf Core Investment providers: HMann, MassMutual, VALIC, VOYA: all low cost; their fees: https://das.iowa.gov/sites/default/files/hr/ric/documents/prod_fees.pdf Also uses 5 “Optional providers”: SB, AXA, Lincoln, EFS and Great American., fees/load add up to about 1.0% or more. No bargain. their fees: https://das.iowa.gov/sites/default/files/hr/ric/403b/documents/AAG_ERE_OP.pdf HI DCP: http://islandsavings...t-the-plan.html The "getting started" page: http://islandsavings...ng-started.html And the investments that are available: http://islandsavings...nvestments.html LA DCP: https://louisianadcp...rs.com/login.do Core funds: https://louisianadcp...98228-01&db=pnp more info: http://board.403bwis...?showtopic=6459 MA DCP: https://mass-smart.gwrs.com FUNDS: https://docs.retirementpartner.com/ioag/98966-01_IOAG.pdf ADMIN FEE: 0.0075% ME DCP: Maine teachers are State employees and receive their pension through MaineSTRS. They can use the Maine Saves 457 which has a choice of 3 providers: Mass Mutual, VALIC and Voya. http://www.mainesaves457.com/my-investment-options/ VALIC funds: http://www.mainesaves457.com/wp-content/uploads/2016/08/Valic-Fund-Fact-Sheets.pdf The other two providers include low-cost funds as well. MN DCP: https://www.msrs.state.mn.us/web/employers/mndcp Funds and ERs: https://www.msrs.state.mn.us/about-mndcp Homepage: https://www.msrs.state.mn.us/documents/10179/37994/Performance+Report/28449bf0-dbe5-4cd4-ad57-9e23ec8d2ea7 NC 457b Plan: https://www.nctreasurer.com/Retirement-and-Savings/Managing-My-Retirement/Pages/NC-Total-Retirement.aspx also has a 401k and 403b NH Teachers are members of the NH Retirement System so should be eligible for the NH DCP plan. https://nhdcp.gwrs.c...cu=NHampshireWR NY DCP: guide to investing https://www.nysdcp.com/tcm/nysdcp/static/Brochure_NYSDCP_Education_Kit.pdf?r=1 plan partners & fees https://www.nysdcp.com/tcm/nysdcp/static/fee_transparency.pdf?r=1 update to recent changes https://www.nysdcp.com/iApp/tcm/nysdcp/about/fund_change_2017.jsp#_ OH DCP: https://www.ohio457.org/tcm/ohio457/static/2015_4q_focus_newsletter.pdf OK There is a Oklahoma Teachers Retirement 403b plan, run by VOYA, but no 457 plan. The lowest ER looks like 0.62%. https://otrs.beready2retire.com/investments/investment-options/666277 https://otrs.beready2retire.com/investments/investment-performance/666277 OR DCP: http://www.oregon.gov/pers/OSGP/Pages/index.aspx DCP fees: http://www.oregon.gov/pers/OSGP/docs/fee_structure.pdf SC DCP: https://southcarolinadcp.empower-retirement.com/participant/#/articles/SouthCarolina/investmentInformation https://www.fascore.com/PDF/SouthCarolina/planFeaturesAndHighlights.pdf ADMIN FEES: 0.10% AND $4/YR TX DCP: https://ers.texas.gov/Active-Employees/Retirement/Texa$aver-401(k)-457-Program Empower Retirement oversees the plan: https://www.empower-retirement.com/ Teachers should verify (with their HR department) if their district offers 457 b plan eligibility. VA DCP: http://www.varetirem...d-profiles.html VT 403b, but no VT State 457 DCP for teachers: Information on the State of VT run 403b plan for teachers: http://vermont.retirepru.com/About-the-Plans.aspx The fund’s offered in the state teachers’ 403b plan: http://vermont.retirepru.com/Investment-Options.aspx WA DCP: https://www.dcprovider.com/PDF/washington/DCP_Enrollment_Booklet.pdf performance: https://docs.retirementpartner.com/ioag/98953-01_IOAG.pdf WI DCP: https://wisconsin.gwrs.com/login.do WV DCP: https://dcprovider.com/PDF/WVirginiaWR/enroll.pdf
  22. Steve, sorry for posting off the OP's topic. I was following your post on 403bcompare. I should have started a new thread. I hope the OP gets the info from the TPA. You say: "Looks like teachers have to use an adviser and said adviser will get a commission. Many of the MF products charge commissions." Yes, that’s what Security Benefit has made it look like by omitting the NEA Direct Invest 403b on 403bcompare. I also checked several school districts and found no NEA Direct Invest, mostly just the NEA VB MF option 3 and the NEA VB variable annuity 403b’s. Also various annuity programs. NEA Direct Invest is certainly available on SB's own website. http://www.nearetirementprogram.com/#!investment-products/c1ldv SB doesn't want CA teachers to know about the NEA Direct Invest?? Why do you think that would be?
  23. Steve, When I checked Security Benefit on the 403bcompare website, I found only 2 products: NEA Valuebuilder Variable Annuity NEA Valuebuilder, 403b7, 457b7 & IRA Sort of interesting that there’s no NEA Valuebuilder Direct Invest, isn’t it?
  24. If your contact is a face to face, don't be surprised if they don't know much about and aren't really interested in the NEA Direct Invest. That's been the experience of other posters. The reps earn their living selling the other Security Benefit products. Direct Invest has a 12b1 fee of only 0.01%, which may be all he gets? As you probably have read, SB's website says it's a DIY 403b for investors who don't need the services of a rep. Whether there are hidden fees or not is still unknown, unfortunately. Maybe the lack of interest on the reps' part is a sign that there are no hidden fees, at least none that he gets to share? We're looking forward to your report back!
×
×
  • Create New...