Jump to content


  • Content Count

  • Joined

  • Last visited

Community Reputation

0 Neutral

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. I will. I am doing this for a friend so they would have to agree to it, but I am still going to try and get the plan ID even if my friend decides against NEA Direct Invest. My coworker has not contributed very much at all thank goodness, so she may just pay the penalty and put it into a Roth IRA instead. I am also working to try and get our district to change our TPA so that we can invest directly with Fidelity and Vanguard, but that process is moving very slowly and I may never convince them unfortunately. I'll write more about that saga in another post.
  2. The TPA representative didn't even know what a plan ID was. They tried to give me the school district's tax ID number. When I called Security Benefit they tried to look it up by the school district name. I am going to try again after the weekend. Hopefully I will get different people on the phone.
  3. Thanks ED. I'm having trouble getting anyone from my school district or Security Benefit to give me information. Security Benefit says they need the Plan ID from the school district to tell me about it. The School district doesn't know what the ID is or what they are talking about and sent me to the third party administrator. The third party administrator acts like they don't know what it is. Imagine that. I'm going to keep trying though.
  4. I called Aspire today they charge $40 Maintenance fee per year. They also charge .15% (15 basis points) on the total balance of your account. Then you have the mutual funds expense ratio depending on what you choose. Investing directly with Fidelity or Vanguard would be better, but we don't have that option. I'm going to look into the NEA direct invest also.
  5. I don't believe they have anything to do with Fidelity Investment company. I think this insurance company is using the word "Fidelity" in their name to try and trick people into thinking they are associated with Fidelity Investments. Notice how they use the green color on their website also. https://www.fslins.com It's looks kind of like McDowell's to me;-)
  6. I did verify that they are charging .3752% quarterly for advice, so you are correct sschullo over 1.5% per year. Teacher says they never explained any of this to her. None of the mutual fund fees are listed on her statements either. She is freezing the account today and I'm now helping her with her options going forward.
  7. Tony, the advisory fees look to be extra. I agree Ed, that they don't need an advisor. I figured this advisor was ripping them off with his fees just like he put them in the expensive mutual funds, but I never used an advisor, so I didn't know what a fair price would be. This person has a lot of homework to do, but I'm trying to help. At the same time I have been in a battle with our school district to change our third party administrator to one that will work with Fidelity and Vanguard. Our current TPA purposely will not work with them. This advisor works for the company our district recommends to people. The district even sent out an email to all employees to meet with them for a "free retirement consultation". This is where they sign up people for this garbage. This example may help me show our benefits committee how much our employees are getting ripped off. I already have the figures of what we would pay with Fidelity and Vanguard, so now I have a comparison.
  8. These are the companies that the employees are able to use currently. I am in the process of trying to get the district to change their third party administrator because the current one won't work with Fidelity or Vanguard. Of these companies listed does anyone know what might be their cheapest option? https://www.natlplan.com/forms/tsa/employer/TX/Mesquite ISD_428/403(b) Approved Providers.pdf
  9. A fellow employee asked me to help them understand their 403b product and fees. They are using a financial planning company and have an advisor that put her in the following funds. It looks like the financial planning company is getting these Franklin funds through GWN securities? The fees listed are what I found online (at fund analyzer) and the advisory fee was the only fee listed on her statement. Would like to get others thoughts on this here as these fees seem excessive to me. What is a fair fee for an advisor if someone wants to use one? It looks like they are charging her .3752% quarterly.
  10. My wife has a plan that she can no longer contribute to because the district dropped it. No annuity, just an S&P index mutual fund. Her fees are less than any of the district's current plans, but could be less with Vanguard or Fidelity. I'm trying to convince the benefits committee to change TPA's and add Fidelity and Vanguard. If I can't get them to change we will do that, but I am meeting resistance. Originally the TPA told me that she had to be 59 or terminate employment to transfer the funds out, but the more I look into it I think that is only to transfer to an IRA. I am wondering if setting up a self employed 401k while continuing to work for the district would be a loophole of sorts to move the account. I was wondering if anyone else here has done this. I found this on the IRS website. I'm going to look into it more tomorrow: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-403b-tax-sheltered-annuity-plans Plan-to-plan transfers between 403(b) plans are permitted if: the terms of the transferring and receiving plans allow these transfers; the transferred assets belong to a current or former employee of the receiving plan’s sponsor; the accumulated benefit after the exchange is at least the same as before the exchange; and any benefit restrictions of the transferring plan are maintained by the receiving plan.
  11. If a teacher is still employed with their district and has a 403B with high fees can they create a self employed 401k and have the funds transferred? Likewise, if they worked for their district and also part time for another employer that offered a 401K could they transfer the funds from the 403b to the 401k? I'm looking for a way a teacher can get out of their district plan without penalties or waiting to turn 59 years old.
  12. Absolutely agree that total market index funds are the way to go for most teachers because of diversity. I mentioned Berkshire Hathaway (Warren Buffett's company) because it is more diverse than most individual stocks. You can see all the companies they own and the stocks they hold here: https://en.wikipedia.org/wiki/List_of_assets_owned_by_Berkshire_Hathaway Individual stocks certainly have more risk and I would not advise them to someone that doesn't understand that or how to manage those risks. I probably should have mentioned that and considered this forum is mostly for teachers that are new to investing. Thanks for the comments Tony.
  13. I would definitely try to get your district to add Fidelity and Vanguard. My wife and I are in the same boat. Our district 403b plans are too expensive, so we both max out a Roth IRA and have a taxable account in addition to our state teachers pension. You can use a taxable account to buy individual stocks that don't pay dividends to minimize taxes. Example: Berkshire Hathaway pays no dividend, so you pay no taxes on it until you sell the shares and it is diversified in that it is a holding company made up of many other companies and stocks. A taxable account allows you to harvest any losses each year on your taxes as well. Also, I like having a taxable account because I don't have to have as much money in my bank account that pays practically no interest. We leave just enough money in our bank account to pay the bills each month and the rest is invested in the taxable account after we max out the Roth IRA. If we had some kind of emergency we could just sell some stocks from the taxable account and transfer the money to the bank. We also use a rewards card for purchases and pay it off at the end of the month in full because the rewards are FREE money. I am currently fighting to add Fidelity and Vanguard to our school district 403b options. I suggest everyone else do the same.
  14. Sounds like the teachers are being taken advantage of and the district does not realize it. That is what has been going on in our school district and I am working on getting a better plan set up. It will take time. That $30 match may not be a good deal if you are paying high fees. I have a meeting with our superintendent soon and have been putting together information for him and other employees. I don't mind sharing it here and don't mind feedback or criticism: https://teachingrich.blogspot.com/p/home.html This info is subject to change as I do more research or find cheaper options. In the meantime you might consider setting up a Roth IRA. My wife and I both have one at Fidelity that we max out every year. You don't have to go through the district to set it up. You can do it in 5 minutes online. They have over 500 commission free ETF's. Vanguard is also a good choice for Roth IRA's. There are some advantages of a Roth IRA that 403B's don't offer. Ideally we would max out both a Roth IRA and 403B, but our 403B's are too expensive so I use a taxable brokerage account. We are working on getting the 403B options changed. Good luck.
  15. Question from this bill I'm trying to figure out. Does this mean that a school district cannot deny an employee the ability to use Fidelity or Vanguard? For example, Fidelity and Vanguard are on the state list of approved vendors, but they are not on the school districts list because the schools TPA refuses to work with them. Does this mean by law the school district has to enter a salary reduction agreement with anyone the employee chooses that is on the state list? Texas Government Code Title 109, Art. 6228a-5. Sec. 9. (a): An educational institution may not: (1) except as provided by Subdivision (8) of this subsection and Subsection (b) of this section, refuse to enter into a salary reduction agreement with an employee if the qualified investment product that is the subject of the salary reduction is an eligible qualified investment and is registered with the system under Section 8A;
  • Create New...