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MNGopher

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  1. I've never heard the author's claim before, about surrender charges improving performance by essentially protecting investors from making behavioral mistakes. I suppose that could be true in some cases, but it seems like twisted logic to me. It's kind of like a kidnapper saying he is protecting his hostage, because the victim is less likely to be in an auto accident or struck by lightning, etc. if they are chained up in my basement. 😆
  2. The TPA that my district uses doesn't charge individual employees an annual fee, but I'm pretty sure the administration pays them something. I don't totally trust their judgement, and I can't help but wonder if they are being partially compensated by the insurance companies that sell annuities. The one time they came out and gave a presentation at my school they seemed to want to steer people towards the insurance companies. They didn't want to talk about Vanguard at all and quickly changed the subject when I asked about them.
  3. Yep, I saw that and joined the FB group yesterday.
  4. Congratulations! Excited to hear about the changes that are coming. It should be a great help for the K-12 community.
  5. I'm glad it worked out. It's amazing to me that with all our modern technology, a simple transfer of funds is such a time consuming process.
  6. We've had some vendors that have been removed. The people that already had accounts there could keep them, but no new participants were allowed.
  7. I very much respect people that live frugally, save a lot, and invest wisely, but this couple is cutting it way closer than I ever would ever dream of. The numbers say they will live the rest of their life on a little over 30 K annually, adjusted for inflation. What if they have a child or get a pet someday? I can't imagine living with no vehicle other than bikes and bus passes for the rest of my life. What about illness or injury? I didn't see anything about health care in their budget. With stories like this I always suspect that there is more to the story, like maybe an inheritance, windfall, or some income producing gig they aren't telling us about.
  8. For some reason Vanguard will figure out your personal rate of return for each time period except for YTD. However for the two funds I own in tax advantaged accounts, the return at the half way point were as follows. Note this is the funds return, not my personal return, because in the case of the 403b, I didn't put it all in on the same date. The Roth I did put in the first day of the year. 403b VRIVX Vanguard Institutional Target Date Fund 2025 (about 65/35 stock/bond) 13.23% YTD Roth VASGX Vanguard Life Strategy Growth (80/20 stock/bond) 14.36% YTD (This one is now 15.27% as of July 2 😀 )
  9. I think that's the average expense ratio of all his funds.
  10. And yet annuity salesmen are allowed in the schools and give questionable financial advice (if not outright false information).
  11. I don't think that I want to do it (the accelerated pension payout). I was wondering if anyone had a good reason why I should do it. It is an option offered by our state pension, and about one third of Minnesota retirees choose to do it. I assume the reason being they want the extra pension income as a bridge to Social Security.
  12. No, I would get a pension as soon as I retire. It's just that we can choose to take a higher amount early in retirement and less later. But as I mentioned, I am leaning against doing the acceleration.
  13. It's not as good for younger teachers. I was fortunate to start paying in to the pension fund when I did. People who started teaching just a few months after me will have to work many years longer to get the same benefit.
  14. Thanks Tony, I'm not a math whiz either, but my thinking is much the same as my social security thinking, that being that if a person is healthy and doesn't need the extra money right away, well, you might as well let it sit and get a higher lifetime benefit by delaying. We don't have a lump sum option in Minnesota, and there are a bunch a different options on survivorship % payout for the beneficiary. If I just look at the No Refund (no survivor benefit) as a baseline it's basically...Option A: 4,050/mo. for life, Option B: 6,350/mo. until age 62 and 3,100/mo. beyond 62, Option C : 5,800/mo. until 67 and 2,100/mo. there after. I'm rounding numbers off, and all 3 of these projections assume retirement at age 57 with 33 years teaching. The beneficiary options are also good and the monthly amount only drops off about $100-200/month depending on if you choose 100%, 75%, or 50% survivor payout. There is also a "bounce back" so that if your spouse/beneficiary dies first, you automatically bounce back to the highest amount. I'm leaning towards not accelerating the pension. I want some low income years between age 57 and Social Security, where I might be able to take capital gains at 0% and do some Roth conversions from my 403b.
  15. Although I'm still 3-4 years from retirement (when I will be 57-58), I recently met with a counselor from the Minnesota Teacher's Retirement Association, so that I could weigh some options. One area that I could use some feedback on is the option to accelerate my pension. I will have the option to accelerate my pension pay out to 62 or 67 (or anywhere in between), and then for the rest of my life the payout would be lower. They ran several projections, and I assume the numbers are actuarially neutral, for normal life expectancy. I am leaning towards not accelerating, because a.) I am in in good health and have a longer than average life expectancy based on my relatives, and b.) I have enough saved between my taxable and tax advantaged accounts that I don't need the extra pension income for my life style. Is there any good reason to accelerate in my situation? Has anyone else had this decision to make? Of the two retirees that I have talked to that did accelerate, one was happy with it and one regretted it, but they didn't explain further. The stats say that only about 1/3 of Minnesota retirees choose the to accelerate their payout. Anything I'm not thinking of? I will probably wait to take SS until at least my full retirement age.
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