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EdLaFave

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    Orlando, Fl

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  1. SS will still be there and the solutions to increase its solvency are so simple. Did you know wealthy people only pay SS tax on their first $132,900 of income? Complete solvency can be obtained by doing things like eliminating the absurdity of rich people paying a lower effective rate than regular folks and perhaps asking rich people to pay a higher effective rate like we do for federal income taxes. I hate the conventional “wisdom” that you should save % of your income. Often times is way too low and it gives people an excuse to not save as much as they can. You never know what life will throw at you, save as much as you can, reject materialism, and maximize your earning capability. How’s that for conventional wisdom?
  2. Just to restate the obvious, there are actually two questions at play: What types of accounts can 403b accounts be rolled into? We all know you can roll 403b accounts over when employment is terminated, but are there loopholes associated with simultaneously having multiple employers or simultaneously running your own business? The answers for #1 are obtained very easily. I'm not sure about #2. My gut tells me that you have to terminate employment regardless of whether you're working another job or running your own business. Please report back if you find a definitive answer. I suspect the answer may depend on the plans the district negotiated with the vendors...but I also think those agreements are pretty uniform across the country.
  3. I feel comfortable emphasizing fees because: I think everybody understands that the amount of money they save (or don't save) is critical. I think most people perceive excessive fees to be small because 2% isn't a "big" number, when in reality we know it steals more than half of your real investment returns. Fees are the #1 predictor of returns. The formula is simple: Invest in total market index funds with fees somewhere between 0% - 0.17% (roughly). Invest in international and domestic stocks (pick a split and stick with it). Invest in enough bonds so that when stocks go down you don't do something stupid. Reject consumerism and materialism. Take the excess money from each paycheck and buy more investments regardless of what the market is doing. Never sell until you need money in retirement. Reject the fantasy that you can predict anything in the short to medium term when it comes to the stock market.
  4. whyme is 100% correct. If you want to read just a little bit more about those very topics then check out the Investing 101 page I wrote.
  5. Fidelity is arguably the best plan in the nation, with Vanguard being the only competition. If I were in your situation, I’d absolutely rollover the existing 403b to Fidelity. I documented their plan here.
  6. It looks like you'll need to be in the top 5% of earners to hit this goal and if you're at the bottom of that window then you better live in a cheap part of the country. https://www.investopedia.com/personal-finance/how-much-income-puts-you-top-1-5-10/
  7. The phrasing around FIRE drives me nuts. Was hard work and sacrifice at play, maybe? Was there a bigger factor in saving a million dollars in five years? Absolutely, otherwise we’d have a lot more millionaires running around.
  8. Thanks Steve, I actually just emailed them today. Hopefully, I'll hear back soon.
  9. Just echoing the previous responses. I documented Security Benefit’s NEA DirectInvest plan here. I documented the specific steps I had to go through to enroll here. Blindly investing in something you don’t understand is a great way to be taken advantage of. So I’m going to assume you also want to understand investing. Please read the Investing 101 page I wrote and come back with some questions. It is a quick read that explains the heart of what you need to know, the only thing it doesn’t cover is the types of accounts that exist.
  10. This is the docile attitude that allows the 403b/457b mess to persist. One of the greatest Americans to ever live taught us very plainly that, "Power concedes nothing without a demand. It never did and it never will." OCPS (FL) didn't "want" to add Vanguard and Fidelity when I initially ask and they certainly didn't feel like they "needed" to. However, they relented when I refused to drop the issue. This is just how power dynamics work. If you're quiet and accepting, you'll be taken advantage of.
  11. In my experience it takes the same amount of effort to add any vendor. So choosing to add a vendor that is inferior to Vanguard and Fidelity is not a wise decision. Adding Vanguard and Fidelity to OCPS (FL) was in no way more difficult than it would have been to add Aspire. There is nothing unrealistic about accomplishing this, at all. ...if in some districts adding vendors takes varying amounts of difficulty, then it wouldn't be wise to begin with the inferior choice. Start with the best and work your way down from there.
  12. I just wanted to endorse what Krow said. Also, even if "all" you were being charged was 1%, that is absolutely egregious.
  13. If you're going to go through the process of getting a vendor added to the list, and I highly encourage you to do that, then do not put effort into adding Aspire. Put all of your effort into adding Vanguard and Fidelity. Aspire is needlessly more expensive than both Vanguard and Fidelity. I got OCPS (FL) to add both Vanguard and Fidelity to their list of vendors. I wrote about that in a few blog posts. I'd be more than happy to help you navigate the process.
  14. Security Benefit's NEA DirectInvest is an elite 403b plan. I enrolled my ex-wife in that very plan. I documented the details of the plan here. I documented the exact steps to enroll in the plan through OCPS (FL) here. You may benefit from reading the Investing 101 page I wrote here. Sadly this plan isn't offered as a 457b, so if you're able to max out the 403b then your next best option for the 457b is Aspire, which I documented here.
  15. Security Benefit's NEA DirectInvest is an elite 403b plan. I enrolled my ex-wife in that very plan. I documented the details of the plan here. I documented the exact steps to enroll in the plan through OCPS (FL) here. You may benefit from reading the Investing 101 page I wrote here. Sadly this plan isn't offered as a 457b, so if you're able to max out the 403b then your next best option for the 457b is Aspire, which I documented here.
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