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CTinker

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    Maine
  1. That just means I expect them to be able to pay out what they promise. Many Pensions are underfunded, which is why the plans have changed. For example here is a quote from Illinois, "TRS, like many other pension systems throughout the United States, carries an “unfunded liability,” which at the end of fiscal year 2020 was $80.7 billion. Because of this unfunded liability, TRS currently has 40 cents in the bank for every dollar owed to all 427,000 members for the rest of their lives." Similar to how I don't know if Social security will be around when I retire. I am already vested.
  2. LIKE MINDED randos! What would you need to know about the pension? The calculation is years of service average of 3 last years salary .02. It is 89.6% funded. The more I think about it the more I realize I should write down a workable plan or investment policy statement. I can be impulsive and even now am fighting the urge to buy stock in a solid state battery company. I like that visualization. Vanguard is upgrading their portfolio watch:
  3. Alright, That "Adding a 457 plan is Easy as 123" podcast episode came true. I was able to add the 457 plan to my district. I am pumped! but now in a moral conundrum.... I opened a 403b with NEA Direct invest which has the $35/year fee for accounts under $50k. That has been going well but now that the HR department added this plan I advocated for I feel like I should jump in. The problem is that adds the $50/year fee for another account that I can't max. I want to focus more on the 457 even though there are higher fees because of the flexibility. Would you... Open the plan and split the contributions between plans. (Knowing those fees are a lot less than the 1-2% fees that are all too common) or try to get the 403b to 50k then open the 457?
  4. I checked out that table when you posted it before and it visually illustrates how unpredictable the markets can be but then I averaged all the years together and small cap came out with an average 9.4% return and Large cap came out as 7.68%. *Past performance is no guarantee of future results Thank you for the replies. From reading through that thread and your statements it seems to me that the argument to not tilt towards Small cap is to avoid behavioral mistakes, it creates anxiety, and requires research/decisions.
  5. First of all thanks for helping me find NEA Direct Invest with Security Benefit. My account is up and running and it seems to be a good deal so far. I've made it through the Boglehead's books and realize I could make a simple three fund portfolio and want to follow their investment philosophy (mostly). The Direct Invest Plan has the following Vanguard funds: VBILX - Intermediate Bond Index VTIAX- Total International Stock VTSAX- Total Stock Market (US) VIMAX- Mid Cap Index VSMAX - Small Cap Index. Now I could create a simple Lazy Portfolio out of these but I am 34 and don't feel I need a lot of bonds because I have a pension that is pretty well funded. I put together a spreadsheet with the Maine Pension calculation that gives me the piece of mind that if I work til 65 I believe I could retire without extra contributions. A snaps of the table is below and I used the current contract and today's dollars for assumptions. Age Years of Service Pension Monthly 40 12 $14,035 $1,170 50 22 $36,211 $3,018 55 27 $49,530 $4,128 60 32 $64,735 $5,395 65 37 $81,740 $6,812 Am I misguided if I think this allows me to take more risk? My current Asset Allocation is 47%US Stock, 48% International, and 5% bonds. Now I have briefly looked into the possibility of adding the small cap index into my 403b because they have been historically better than the Total Stock Market. Two Questions: How do you factor in your pension into your investment strategy? Do you all prefer simplicity or do you dabble in factor investing?
  6. I am disappointed to hear the action is on Facebook. I deleted my account last year.
  7. I am really starting to love google sheets. I have built one that calculates my pension based on years worked concurrent with the future value of my portfolio. I take that info and plug it into this "rich, broke, or dead" calculator to give me some more motivation. The Variable Percentage Withdrawal sheet from Bogleheads is interesting also.
  8. I'm new around here and 34 years old so I'm not going to tell you what you should do but I'll tell you how I see it. I am working to get a 457 plan added in my district because I would like to focus there. I have read a lot of "Millionaire Educators" blog posts and heard his story. He focuses on savings and minimizing taxes. He uses the 457 to give himself some freedom. He doesn't really post anymore but the ideas are still relevant. I think the 457 would give me more peace of mind because then I don't need a huge emergency fund. If I lose my job I can tap that. If I save a bunch and hit financial independence, I can decide if I want to separate service on my terms. I don't know if there is a difference in fees for your plans but I have just transitioned from contributing to Roth IRA to 403b. I will continue to fund the 403b until I get to a point where the fees are reduced. Then I will focus on the 457.
  9. The Newport Group is the record keeper and they charge an annual fee of $50 and 3 basis points on all assets. Still seems like a good plan right?
  10. Does this mindset of chasing returns even factor into actively managed funds? My wife had shares of Vanguard International Growth Fund Admiral Shares (VWILX) and I was amazed at their returns compared to the benchmark. Then I dug into their holdings and Tesla was #1, which is confusing to me since the fund is supposed to focus on "non-U.S. companies with high growth potential." I took it as an opportunity to re balance instead of chasing more returns. Also an opportunity to go from a .33 expense ratio to a .11.
  11. Here is the main page. I couldn't find any info on fees which makes me think there are none (maybe I am naive). Their about page has a good write up on their approach to fees. image attached: The funds they offer are: Vanguard FTSE Social Index Fund Vanguard Prime Money Market Vanguard STAR Fund Vanguard Target Retirement 2015 Fund Vanguard Target Retirement 2025 Fund Vanguard Target Retirement 2035 Fund Vanguard Target Retirement 2045 Fund Vanguard Target Retirement 2055 Fund Vanguard Target Retirement 2065 Fund Vanguard Target Retirement Income Fund Vanguard Total Bond Market Index Fund Admiral Shares Vanguard Total International Stock Index Fund Vanguard Total Stock Market Index Fund Institutional Shares
  12. I talked to the Plan Administrator at MaineSTART and emailed my districts central administration. I BCCed a Union President. Fingers are crossed... They seem like a good plan with exclusively Vanguard Funds.
  13. I tried to find this in other posts but couldn't. I don't fully understand the GPO and WEP other than I'll get less SS. I don't count Social Security in my planning but does a 547 get treated any differently by GPO or WEP vs how it treats a 403b? I already have a pension plan and have started a 403b and was going to advocate to a 547 to my district.
  14. Thanks Krow. I've been to that site and it is a mess. It seemed like there were 3 possible vendors available for the 457 but I wouldn't jump to start an account with any of them. In my digging I did find a program called MaineSTART that is linked from the organization that handles the pensions, MainePERS. There are some districts on the list of employers but not mine. I've sent an email and will report back when I hear something.
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