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  1. Someone needs to start a business where they assist districts across the U.S.A. in implementing no-cost 403b-7 plans. This should be a mandatory enrollment, single provider concept.. One would think it could be accomplished if the districts' have the teacher's best interest in mind. It would also get rid of all the sleazy, corrupt, salespeople that steal teacher's hard-earned money. It is a disgrace that teachers are given crappy products, poor advice, etc. by their districts and someone needs to step up.
  2. I have been clamoring for a low-cost self-directed 403b product produced by the insurance companies for some time and have hit a wall. There is no interest at all by the agents or the companies. Most reps want to be paid as much as possible and will not do anything that detracts from their pay. The companies have also said that they do not want to go this route. No one is listening and it is very frustrating. They basically said leave the industry if you do not like it.
  3. I tell teachers while sitting down with them the differences between the self-directed accounts and the 403b-1 annuity or advisor 403b-7 accounts. If they have a self-directed account at the school, I inform them of the advantages of this. I also explain they can invest outside the district in an IRA through a self-directed account if they choose. But I tell them I cannot assist them as my company does not offer this. Many times then, the teacher does nothing as they want someone to set it up for them.
  4. They did come out with a 403b-7 around a year ago. But it uses class A shares if I am not mistaken.
  5. The 403b industry is adapting though. They are coming out with their own 403b-7 now, which is actually more expensive than the annuity product they are selling. They either place you in loaded funds or charge a yearly 1.25% wrap fee. Unlike annuity products, however, 403b-7 applicants have to pay the TPA fee out of their contract, which can range from $35 to $60 a year, in addition to the contract fee on these products. So be careful about saying the 403b-7 is always better than a 403b-1 annuity, because in some instances, it is actually the lower cost product. The only good option is the self-directed 403b-7. Everything else is a rip off in my opinion.
  6. I want companies to allow us to sell products that they would sell their families. I want to be able to sell products I feel good about selling and not rip people off. That is what I want.
  7. I agree. I wish the agents could sell what is best for the teachers and not be hindered by what the company makes them sell. It is disgraceful. They should be able to sell quality products to teachers. My peers always say they are worth that extra 1% because they are CFPs or they are helping them with retirement planning and no one does anything pro-bono. Most of us though, just set up the teacher with a 2% a year fee product and never talk to them again.
  8. P.S. to answer the above question: It was just a small district, and I mentioned it more to vent my frustration about the total lack of knowledge in this sector. I really don't want to lambast a particular district, so I would rather not say.
  9. Hello, I am not a troll. I am just torn between making a living and providing teachers with the best possible options. Most are unaware of their options and that they don't have to invest through the district if the products provided are not in their best interest. I always share that they can invest outside the district if they don't want to pay for a higher cost product through the district. Unfortunately, some do nothing then, and I cannot set up a low cost IRA for them. The 403b companies are in this to make money and they have to pay their sales force, so will not push/offer lower cost products unless forced to by the administrators or if teachers start clamoring for lower cost options. But according to a recent report, only 18% of teachers care about lower cost products, so if there is not a push for reform, it will continue to be business as usual.
  10. Hello, one of the districts I frequent went sole provider with the AXA series 201. They had a Vanguard 403b-7 in place but the district shut that down, along with the other companies, and said they were consolidating down to one provider. I asked why and they said it was easier for record and book keeping purposes. No one was using the Vanguard 403b-7, because it was not promoted and everyone had an AXA 403b. As I travel throughout the state, I see this from time-to-time: annuity companies phasing out the 403b-7 custodial companies self-directed programs because no one is using them or if there is a slot for them, no one utilizes it and it goes away. There was a study done and it stated that only 18% of teachers care about fees in their retirement program. What they want is for someone to communicate and be there for them to help get them to retirement. Welcome to the world of chaos in 403b land.
  11. As I understand, the representatives make more when placed in managed accounts. I just hope the aspect of earning more money by placing a 24-year old in a managed account doesn't override doing the right thing and placing someone that young in a low-cost target fund. To the uninformed, a managed account sounds more impressive and if the representative doesn't explain things equitably, many might make the wrong decision. Also, how do we know the representative won't roll all these accounts over to Traditional IRA VALIC annuities to earn commission after the teacher retires. I just hope the representative is honest and can ignore the temptations of placing people in a high-fee products to get commission.
  12. I love target funds and place myself in target funds. However, every client I stick in target funds get rolled out because the annuity agent claims he can do better. I have to defend target funds everyday, because annuity agents say they are for people that don't know what they are doing. I am in the field everyday and this is what I run up against.
  13. Administrators don't know the difference and think everything is the same. The don't even know about custodial accounts. Most teachers are just confused and don't want to bother about the differences between products. They just want to know they will be able to retire on time with a nest egg.
  14. I agree. You should be in a self directed plan and stick yourself in a low-cost target fund if you don't know what you are doing...otherwise you are being ripped off. The problem is 403b annuity salesman bash that approach and say they can do better and the teachers have no clue, so move out of them over to the high cost commissioned product annuity. I see it all the time.
  15. This is a joke. They need a single vendor policy implemented in each school district. The school district should put out bids every 5 years in order to maintain the best plan. They should have a fiduciary responsibility for their employees as well. The reps should be salaried that are in the schools as well. In the private sector, you don't see 10 401k plans and each company sitting in the lounge trying churn your portfolio over to their company.
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