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JC.

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Posts posted by JC.


  1. Thank you so much for your response. That website 403bcompare.com is a wonderful resource.

    I would say the IPX plans that do not charge BP seem to be a wonderful option. You have to remember though Fidelity charges $24, but I have to content with the $36 fee Omni charges. So if Omni brought Fidelity into the P3 I would have to pay $60. with IPX I pay $50 and that includes Omni's $36 fee. It's actually cheaper. Since I will just be using this account for the Fidelity SP 500 index fund FXAIX at .02% it's an incredibly inexpensive plan.

     

    Thanks again for the reply.

     

    JC


  2. 3 hours ago, Jeff the Teacher said:

    I was wondering if anyone knows if Charles Schwab offers any 403(b) services for schools. I found a document online related to Schwab 403(b) but saw little mention of 403(b) on the Website when doing a quick look.

    Here is a custodial agreement I found:

    https://www.schwab.com/public/schwab/nn/schwab_403b7_account_agreement.html

     

    Whatever insights people have would be appreciated.

    I have yet to see them as an option, but I would be surprised if they didn't have some way of addressing that market.

     

    JC


  3. 17 hours ago, EdLaFave said:

    Just to be clear, what I said is that I have every reason to believe they’re unethical because they don’t list any useful information on their website. I reserve my actual judgment until I have the necessary information.

    I followed the link you sent. I see a $50/year custodial fee and I see a $121 annual cost fee listed at the top. I’m not sure what is what there.

    I also see you have access to:

    Fidelity 500 - 0.02%

    Fidelity Mid Cap - 0.03%

    Fidelity International - 0.04%

    Fidelity Emerging Markets - 0.08%

    Fidelity Intermediate Treasuries - 0.03%

    So if you only have to pay $50 on top of those expense ratios and there aren’t any other fees then this is a really good plan. 

    I'm with you Ed. I really appreciate the thoughts. I agree, the website is weird. I have been emailing with a representative and everything seems like its on the up and up. I had never even heard of this company. The link I sent from 403b compare seems to confirm what I am being told. The $121 they reference seems to be the $50 fee, plus the cost of owning funds. The site estimates this 71 fee by taking   the average expense ratio of all investment options. and multipling it by a 10k investment. I would just use the Fidelity SP 500 index fund FXAIX .02%.

     

    It sounds almost too good to be true, which is why I'm questioning it. I also have a Vanguard proper option, but that is $60 a year and I would rather Fidelity funds.

     

    Thanks again Ed.

     

    JC


  4. 3 hours ago, EdLaFave said:

    I don't know why you're phrasing the expenses this way and I'm deeply skeptical of the "$50 a year for Fidelity funds" phrasing because:

    • Vendors typically charge a flat rate to have the account (like Vanguard's $60/year) and/or an AUM to have the account (like Aspire's 0.15%/year).
    • Furthermore, vendors at least to my knowledge, don't give different fees for a family of funds (like say Fidelity funds in your example)...they may inflate a fund's expense ratios.

    Additionally, I went to their website and it doesn't provide any useful information despite having pages and pages of "content." This is the same approach used by vendors looking to rip-off investors because they want you to call or they want to send a rep to you so they can apply high pressure tactics to get you to sign up for something you don't understand. They certainly don't want you to understand the product in the comfort of your home and then count on you signing up because it is so awesome.

    So although I don't have any experience with IPX, I have every reason to believe they're unethical.

    Hi Ed,

    Thank you for the response. From my understanding IPX has three different types of accounts that you can open all with a different fee structures and investing opportunities.

     

    What the representative shared with me seems to be confirmed by 403bcompare.

     

    Here is there product list https://www.403bcompare.com/vendors/1966#/productlist

     

    And here is the plan that gives access to Fidelity Funds for a $50 flat fee.

     https://www.403bcompare.com/products/272#/investmentoptions

     

    Ed thinks IPX is unethical. Does anyone else have an opinion?

    '

    Thanks again Ed. 

     

    JC


  5. Hi Everyone,

     

    My district just added two new vendors to our list.

    IPX and Vanguard.

     

    Which would you choose:

     

    Vanguard $60 a year or IPX with Fidelity Funds for $50 a year?

     

    I'm a Fidelity investor, the fund I am interested in are on average less expensive than Vanguard, but my money would be house with IPX not Fidelity directly.

     

    Thoughts?

     

    JC


  6. Has anyone ever dealt with a company called IPX

     

    https://www.ipxplatform.com/overview/

     

    They just came online as an Omni P3 provider. They seem to be set up just like Aspire, but their cost structure is better.

    For Vanguard Admiral share funds it costs $86 which includes Omni's $36, Vanguards fees and IPX fees.

    For Fidelity funds it costs $50 which includes Omni's $36, Fidelities fees and IPX fees.

    or

    their Fund Portal option which is $50 & .2% This includes a bunch of investment options.

     

    I'm not sure why you would do the Vanguard one or the Fund Portal since Vanguard itself only charges $60 a year and my district pays Omni's $36 or the Fund Portal option.

    But

     

    $50 for access to a boatload of Fidelity funds sounds great. 

     

    Has anyone heard or dealt with IPX before??

     

    Thanks in advance.

     

    JC

     

     


  7. Are you sure you are not grandfathered into the plan you had previously opened at Fidelity? I am currently with Aspire. There is a maintenance charge and they do charge basis points. I would look into them first.

     

    JC


  8. Hi Everyone,

    I'm in NY and am having a difficult time with not dropping the 403b altogether and moving to the 457 which has an administrative fee which is a combination of a $20 annual fee, paid in two $10 semi-annual installments and an asset-based fee calculated as a percentage of a participant's account balance. The annual asset-based fee is estimated to be 3.0 basis points, paid in two 1.50 basis point semi-annual installments. The asset-based fee will be charged only on accounts with balances in excess of $20,000. Account assets subject to the asset-based fee are capped at $200,000.

    So for the NY 457 $200,000 would be $20 + ($200,000*0.0003) = $80 annual fee MAX since the asset-based fee is capped at $200,000. That $80 turns out to be an admin fee of .04%

     

    Am I wrong or isn't that a really inexpensive plan?

     

    JC


  9. I will have to check up on that. The information I was passed just talked about Vanguard's $60 annual fee not Omni's fee of an additional $60.

    I'm in NY and am having a difficult time with not dropping the 403b altogether and moving to the 457 which has an administrative fee which is a combination of a $20 annual fee, paid in two $10 semi-annual installments and an asset-based fee calculated as a percentage of a participant's account balance. The annual asset-based fee is estimated to be 3.0 basis points, paid in two 1.50 basis point semi-annual installments. The asset-based fee will be charged only on accounts with balances in excess of $20,000. Account assets subject to the asset-based fee are capped at $200,000.

    So for the NY 457 $200,000 would be $20 + ($200,000*0.0003) = $80 annual fee MAX since the asset-based fee is capped at $200,000. That $80 turns out to be an admin fee of .04%

    Isn't that better?

    Is there something I am missing?

     

    Thanks all.

     

    JC


  10. Hi Everyone,

     

    Just heard that Vanguard is back on Omni's P3 provider list. Vanguard Fee is $5 a month/$60 a year plus fund expenses.

    So 200k .04% fund expense is $80 plus $60 annual fee= $140

     

    Has anyone else heard this? I will be calling my district office tomorrow to confirm, but it looks like good news is coming.

     

    Thoughts?

     

    JC

    Vanguard 403(b) Services_Core Fund Offering 4Q19.pdf Vanguard 403(b) Services Program.pdf


  11. Hi Everyone. 
     

    My district subscribed to Omnis p3 provider list. I’m trying to get the district to add Fidelity but am being told that if the district wants to participate in the P3 program (substantial cost savings), they CAN NOT allow employees to contribute to companies that are not part of the P3 program.

     

    Does anyone have any experience fighting this fight?

     

    Thanks in advance. 
     

    JC


  12. Hi Everyone. I’m new around these parts. I heard about the site because the founders were on a Motley Fool podcast. Looks like you have a nice community. I have attached my list of providers through Omni. Can anyone give some advice on how to slim the list? I’m in NY. Thanks in advance. 

     

    JC

    9688344A-D455-4DF5-B384-CA76811C0D69.png

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