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bzribee

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  1. My initial reaction was #1 as most important but after reading the article and thinking about how long it took me to actually act on my "knowledge" (years!), I do agree with you that #2 is most important. Thank you for the articles you post.
  2. I retired at 57 and rolled my tax defeered 403b7's AND tax deferred 457's to a traditional IRA without any difficulties. I did this in order to be with Vanguard, which I felt was to my advantage. I stressed over this but the actual paperwork was not a big deal, and it was smooth. I could not roll over to a Roth, nor would I have wanted to. I do have Roths, but they're a different thing, as explained above. I don't plan on touching Social Security, though, until I"m 70. I believe a way to calculate that is to see what percent of growth happens between 62 and 70, and decide if you can do better than that on your own. Not sure how to express that concept, sorry...
  3. Just to add: I believe the money put into retirement is community property, at least in some states. In CA, my teacher friend was the only working spouse and when she and her husband divorced, she had to share her retirement with him 50/50. Had she divorced before 12 years of marriage that wouldn't have happened, but she waited and it REALLY cost her: 50% of retirement, 50% of house... At least that was her situation. Hopefully never an issue for the writer.
  4. Kat, what's really weird is that the FP (who is not a fan) wanted me to stay with them! I don't know where those charges are, they're always showing me comparisons that they are as low as, or below TIAA...Anyway, the paperwork is done and I just need to clarify a few things; I'll turn the paperwork in by Friday noon. Did you turn your paperwork in at Kearney Mesa, the County Office, or via mail? I had to re-do all the paperwork as I started it while employed, but then retired. The forms are different. I remember your earlier posts. An inspiration to me. Thanks!
  5. Responses to Steve, Whyme and Mark, First, thanks to each of you for your responses. To clear up a few things: I DO have a CalStrs pension, and will also get Social Security (not much) at 65. The DBS is something else CalStrs only collected and paid from 2001 ‘til next year, I think. I took a one time payment. I also got 5 years of extra money through a Golden Handshake type deal. And I have a small side business. I really don’t expect I’ll need to touch anything ‘til 70, at which point I’d likely take out 4%/year. I don’t feel comfortable stating how much I have but I’ll just say I’m probably okay, and can be conservative. I live VERY inexpensively and can live on my CalStrs pension plus my small business without touching any savings. However, if I had to take $$ out, it would be 2-3%, for now (per year). If I find a home to buy, I’ll use some savings. Mixed feelings on that. I hate to owe... About the 3 planners. I only worked with one. AFTER realizing he wanted to manage my money, I spoke briefly with the other two who said that’s how they work, also. I finally realized FP and I were at cross purposes. He expressed (in a letter) that he had left me with a good set of rec's (Hussman, Pimco, DFA plus sending Vanguard into a P2 Vanguard account). I am going to quote here, edited for length, some points my fee only FP made. I can’t seem to use the italics, etc here, so his comments (from an email to me) are within the quotes: <begin quote>"I helped work up the financial plan and asset allocation and provided you an actual detailed Investment Recommendation that you could implement on your own - without me. This is not something I typically do anymore as things change so quickly and tending to a portfolio once a year in this market can be treacherous. I've learned over the years that working on a basis of "portfolio check ups" doesn't work well as the time for advice is when it is needed, not on a calendar basis. Having said that, I provided you exactly what you were looking for - an investment allocation that was detailed and that you could implement and was in line with your goals. I believe I was also pretty clear that I manage assets and if you liked my recommendations and wanted a closer relationship - that the retainer service is available. As things are right now, there are several changes I would likely make to the recommendations - but nothing hugely drastic. I have no issues working on an hourly basis, but can't provide investment management on an hourly basis - only via a retainer. “ <end quote> I believe he is saying he will help me re-balance, but would not advise. So, I have decided to do this (with bwise assistance) on my own. I appreciate the Portfolio suggestions. I’ve not heard of the stripped treasury. I will learn about that, and read the books. Meanwhile, I’ll set up a Lazy type portfolio, which is what I’ve always wanted to do (and had told the FP that several times). BTW, I am NOT blaming him. He has been very professional. I just think we were at cross purposes and I didn’t recognize it until a few weeks ago. It never occurred to me that fee only FP’s (many, it seems) insist on managing the portfolios.
  6. Hmmm. I'm not in Wealth Management but I get through very easily whenever I've called the enroll/transfer/plan management folks, if I use the dedicated CalStrs P2 number, not the general Tiaa number. In fact, I have an appt to speak with someone on MOnday and will ask him about this, as it may be that I'll be in that section, too. So far, if I've had portfolio questions, I"ve always been connected immediately or gotten a call back pretty quickly.
  7. Thank you, thank you, Steve and Joel. Okay, you asked for it (previous post), get ready for details. Firstly, those 3 funds (Pimco, Hussman, DFA) were part of a portfolio worked out for me by a bwise recommended fee only financial planner. I don't want to give a name but I will say that after working with him, and speaking briefly with two other fee only persons, I realized that most of these folks want to take on and manage my portfolio for me, for a fee, of course. The fee is probably reasonable, but it becomes a managed portfolio AND I'm not in as much control (or lack of it, as I look at my last 15 years). Also, in his defense, this was done before I retired, about March of 2010. This person works through TIAA and Fidelity, so he essentially suggested moving all my Vanguard money to TIAA, and left my Nationwide money alone (which I had really wanted to move to Vanguard and/or TIAA). He wanted to do one Vanguard fund THROUGH TIAA. He said he no longer believes in buy and hold... This week I have turned in my own paperwork to rollover Janus Overseas to Vanguard (hope I didn't mess up on dividends), and am trying to decide whether to move my Nationwide to BOTH Vanguard and TIAA, or just one of them. That's why I asked about the 3 funds--I've figured out they are brokerage accounts, and "free" through my TIAA 403b. So I was trying to look objectively at some of the FP's suggestions. He mentioned that he no longer likes one of these, but didn't tell me which one. AND, if he was managing my portfolio, that would've meant moving it. Buy and sell..."Brokerage" also affects whether I roll everything over to IRA's, where that would cost something. One last comment before the personal/financial details: last night I REALLY looked over everything I have, especially Nationwide. I never really took the time to do this while teaching. I've averaged 4.3?% over the last 10 years. To me, that's crap. I'd said many times I felt it was just an enhanced savings account, and while 4.6 may be okay this year, I really should've moved those funds many years ago. I complained, but didn't take charge. I never even really "got" the statements. Last night, I noticed (!) that each quarter, hidden among the 3 pages of fund listings, was a little note that said, "You have made 3.2% YTD" or something similar. Hidden, yes, but I should've found it and been energized to move the money, even within Nationwide. So I ask myself, "Why would I keep it there now?" I have better options and more time to think and act. The FP said (several times) to leave that money there (at the time about 50% of my savings). I am 58, 4 months retired, single, renting (low rent) and have a side hobby/business that brings in enough that I don't "deprive" myself. I live very inexpensively and save very well and do not expect to be taking money out of my accounts until I have to (70). Then it'll be a minimum. If my elderly mom comes to live with me, well then I may buy a place...oh, there was a buy-out in my district, so I have 5 years of extra income. I'm sending it directly to my Tiaa 403b. I took my DBS as a one time rollover to my 403b (the idea being I could do better on interest than what it gains over 3-5 years?). I taught K-12 and took health insurance through age 70, where I pay 19%. Here's what I have now: 48.0% cash (banks, interest varies from .2 to 1.1%) 4.0% Roth IRA Traditional Annunity, Tiaa-Cref, CalSTRS P2, 1% guaranteed (now getting 2.6%) 5.0% 403b Traditional Annunity, Tiaa-Cref, CalSTRS P2, 3% guaranteed 6.0% 403b NSDMX Nationwide, through FBC 10.0% 457 NSDMX Nationwide, through FBC All of the above funds were "holding places" 'til I decided where to put the money. Never got around to it...(a strong example of why many teachers do use or need advisors. We put school before selves). Also have: 4.0% 403b Janus Overseas (closing that one--moving to Vanguard IRA Total Bond while I make decisions--would TIPS be better here, btw?) 10.0% 403b Vanguard Total Stock Market 2.0% 403b Vanguard Small Cap Index 2.0% 403b Vanguard Total Bonds 1.5% Roth IRA Vanguard Prime Money Market/Brokerage (a few stocks) 10.0% Roth IRA Vanguard Small Cap Value 00.0% IRA Vanguard Total Bond Market--holding tank for rollovers Okay--it's not 100%, but it's as close as I can get. It seems between all the bonds, cash and low performing funds that I could be doing better--that's why I said I want to be more moderate. I am not in any way keeping up with inflation, IMO. For all that I read and know, I really DON'T know how I'm doing. Not horrible but poorly, I think. I should've posted all this awhile ago, but after going to the FP I thought it "wouldn't be right". I'm over that now, and would appreciate any and all suggestions, help, etc. I am holding my Nationwide paperwork to see if you think that 16% should go to Vanguard, Tiaa or both. I'd like to turn it in FAST, as I have trouble dealing with the FBC person who keeps convincing me that I'm doing fine with Nationwide (she's on vacation). I also know I've stayed in the Traditional (Tiaa) way too long. It was supposed to be a temporary hold. I"m DONE taking forever. Thanks!
  8. Thank you, thank you, Steve and Joel. Okay, you asked for it, get ready for details. Firstly, those 3 funds were part of a portfolio worked out for me by a recommended fee only financial planner. I don't want to give a name but I will say that after working with him, and speaking briefly with two other fee only persons, I realized that most of these folks want to take on and manage my portfolio for me, for a fee, of course. The fee is probably reasonable, but it becomes a managed portfolio AND I'm not in as much control (or lack of it, as I look at my last 15 years). Also, in his defense, this was done before I retired, about March of 2010. This person works through TIAA and Fidelity, so he essentially suggested moving all my Vanguard money to TIAA, and left my Nationwide money alone (which I had really wanted to move to Vanguard and/or TIAA). He wanted to do one Vanguard fund THROUGH TIAA. He said he no longer believes in buy and hold... This week I have turned in my own paperwork to rollover Janus Overseas to Vanguard (hope I didn't mess up on dividends), and am trying to decide whether to move my Nationwide to BOTH Vanguard and TIAA, or just one of them. That's why I asked about the 3 funds--I've figured out they are brokerage accounts, and "free" through my TIAA 403b. So I was trying to look objectively at some of the FP's suggestions. He mentioned that he no longer likes one of these, but didn't tell me which one. AND, if he was managing my portfolio, that would've meant moving it. Buy and sell..."Brokerage" also affects whether I roll everything over to IRA's, where that would cost something. One last comment before the personal/financial details: last night I REALLY looked over everything I have, especially Nationwide. I never really took the time to do this while teaching. I've averaged 4.3?% over the last 10 years. To me, that's crap. I'd said many times I felt it was just an enhanced savings account, and while 4.6 may be okay this year, I really should've moved those funds many years ago. I complained, but didn't take charge. I never even really "got" the statements. Last night, I noticed (!) that each quarter, hidden among the 3 pages of fund listings, was a little note that said, "You have made 3.2% YTD" or something similar. Hidden, yes, but I should've found it and been energized to move the money, even within Nationwide. So I ask myself, "Why would I keep it there now?" I have better options and more time to think and act. The FP said (several times) to leave that money there (at the time about 50% of my savings). I am 58, 4 months retired, single, renting (low rent) and have a side hobby/business that brings in enough that I don't "deprive" myself. I live very inexpensively and save very well and do not expect to be taking money out of my accounts until I have to (70). Then it'll be a minimum. If my elderly mom comes to live with me, well then I may buy a place...oh, there was a buy-out in my district, so I have 5 years of extra income. I'm sending it directly to my Tiaa 403b. I took my DBS as a one time rollover to my 403b (the idea being I could do better on interest than what it gains over 3-5 years?). I taught K-12 and took health insurance through age 70, where I pay 19%. Here's what I have now: 48.0% cash (banks, interest varies from .2 to 1.1%) 4.0% Roth IRA Traditional Annunity, Tiaa-Cref, CalSTRS P2, 1% guaranteed (now getting 2.6%) 5.0% 403b Traditional Annunity, Tiaa-Cref, CalSTRS P2, 3% guaranteed 6.0% 403b NSDMX Nationwide, through FBC 10.0% 457 NSDMX Nationwide, through FBC All of the above funds were "holding places" 'til I decided where to put the money. Never got around to it...(a strong example of why many teachers do use or need advisors. We put school before selves). 4.0% 403b Janus Overseas (closing that one--moving to Vanguard IRA Total Bond while I make decisions--wouldn't TIPS be better?) 10.0% 403b Vanguard Total Stock Market 2.0% 403b Vanguard Small Cap Index 2.0% 403b Vanguard Total Bonds 1.5% Roth IRA Vanguard Prime Money Market/Brockerage (a few stocks) 10.0% Roth IRA Vanguard Small Cap Value 00.0% IRA Vanguard Total Bond Market--holding tank for rollovers Okay--it's not 100%, but it's as close as I can get. It seems between all the bonds, cash and low performing funds that I could be doing better--that's why I said I want to be more moderate. I am not in any way keeping up with inflation, IMO. For all that I read and know, I really DON'T know how I'm doing. Not horrible but poorly, I think. I should've posted all this awhile ago, but after going to the FP I thought it "wouldn't be right". I'm over that now, and would appreciate any and all suggestions, help, etc. I am holding my Nationwide paperwork to see if you think that 16% should go to Vanguard, Tiaa or both. I'd like to turn it in FAST, as I have trouble dealing with the FBC person who keeps convincing me that I'm doing fine with Nationwide (she's on vacation). I also know I've stayed in the Traditional (Tiaa) way too long. It was supposed to be a temporary hold. I"m DONE taking forever. Thanks!
  9. It has been suggested that I convert my Traditional Annunity (403b) at Tiaa-Cref into the following: DFA Global Equity, Pimco All Asset and Huffman Strategic Growth. My annunity has been paying about 3%, pretty consistently. All my other holdings (not listed) are fairly conservative. If I go to these funds via my 403b, I do not pay any brokerage fees. Later I can convert everything to an IRA as I have retired. In a few days I will probably detail my asset allocation and ask for feedback, but for now I'd just like some opinions on these funds. I do want to be more moderate--I have been conservative out of inertia. I do have a Janus Overseas Fund that I will likely rollover to Vanguard. I'm tired of that particular roller coaster. Thanks for any thoughts.
  10. Tony, I have tried. In fact a few years ago I wrote a rant about how teachers (my peers) didn't want to hear. I also wrote my (wish it was) brilliant assessment of why teachers, especially women, are like this. In all the years since campaigning to get some no load funds into our district, only 2 teachers ever spoke to me about questioning our ever present insurance salespeople. I wish that in my retirement, I could speak to teachers, union reps, etc but I am not knowledgeable enough. Though, now that I think about it, I never spoke to OUR union, just to personnel...hmmm. BTW, one person really took off on my suggestions and has thanked me for it. And this was an administrator (asst supe). The rick get rich and the poor...?
  11. I have serious doubts that this will not take place. You will need someone to sign off on the distribution paperwork from the plan sponsor or TPA. You will save yourself a bunch of hassle by doing this upfront. Sorry for the bad news. Okay--but Janus doesn't have TPA paperwork for this (Vanguard does) so how do I do this? Or do I just leave it as a 403b? I guess I could also just move it to Vanguard, but it is (and has) doing better than the comparable Vanguard fund--in fact Vanguard told me to leave it at Janus after we looked at the numbers...
  12. Yes, that seems to answer my question. I am retired and I believe I have the necessary paperwork (it all lists date of retirement to be _____ which has already passed) but I could have the personnel dept write something more current. Thank you. OOPs--did I mess up these posts? I hope not! Sorry if I did.
  13. I am in the process of rolling over my 403b's to traditional IRA's. Two companies (FBC and Vanguard) say I need my current plan administrator (FBC) to sign off that indeed I am retired. Janus, however, says that I am "grandfathered in" (as I haven't contributed in over 10 years) and they can just take my 403b and roll it over to a traditional IRA, no plan administrator signatures needed. This makes me nervous, especially as my Vanguard funds have also sat for 10 years and they require the TPA signature. Any one know if this is specific to the company, or if I could "get in trouble" just rolling it over myself? Thanks. Oh, and I voted in the poll :)
  14. Hi bzribee, No its not inappropriate. I am not the web master anyway. Lets see if any of our good professionals will answer your questions or refer you to a website that does. I assumed that you ran the numbers, 19% till 70 or 100% till 65? Looks like the 19% till 70 is the much better deal. Steve Thanks. I see I didn't express the numbers correctly. I can choose to pay 19% for the next 12.5 years, and the district covers 81%, OR the district will pay 100% for the next 7.5 years and I pay NOTHING. THEN I will take over at 100% until I"m 70 (5 more years). It was explained to me that when we reach 65 we still need to pay for supplemental medical coverage. I can do that on my own or through the district. I used $300/month as my base cost and it came out that paying 19% until 70 would cost me much less. ($57/mo) $685/year ###### 12.5 years = $8550 ($300/mo) $3600/year ###### 5 years = $18,000. Actually, I think the monthly costs are higher (I'm looking for the paperwork now) but I still read this as it is WAY better for me to pay a small portion for many years. On the other hand, there may be other plans out there that are better for me, or I may not be thinking this out correctly. I did plan on choosing the 19% until I heard there are other options. Problem is, I don't know what those are. Thanks to anyone who has some suggestions...
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