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stubborn 1

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  1. stubborn 1

    A Request

    National Plan Administrators, Inc. furnishes many third party services to school districts in our state. Telephone number is: 512-327-6481. Good luck.
  2. May not be as bad as you think if you are willing to do a little work. 1. Read the contract your wife signed. If possible, stop contributions. 1a. Go to the Texas Teacher Retirement web site: www.trs.state.tx.us; at this site, click on the link: 403 certification. 2. Go to the list of certified companies. You will find many annuity companies that will receive loud boos from this forum. You will also find Fidelity, Vanguard, and T. Rowe Price among other mutual fund companies. 3. Click on the links to the various companies and study the products they offer. Understand that the annuity firms come to the campus, no load mutual funds do not; you have to initiate the process with these firms. 3a. BOTH of you need to read (several good books are sold at the 403b wise web site) and discuss your futures. MAKE A PLAN. Both of you have to be involved in this process; we're talking about building quite a retirement fund here. Should you pass first, your wife needs to be comfortable in handling a portfolio well in excess of 500K. 4. Go to the department in her school district that handles 403 participation and ask how you can sign up for Vanguard's TRS certified 403 plan (Vanguard is used as an example, be name specific when you ask). Good luck and be persistent. You two have time on your side (love that compounding); my wife and I started much, much later than you guys and we will retire in 2006 with a portfolio in excess of 500 K.
  3. Ah to be 30 again. My wife and I will retire in 2006 and share these thoughts with you: be honest with each other develop a family budget pay yourselves FIRST. Learn to live on 85% or 90% of your take home pay and save/invest the rest. Develop a cash reserve before you start investing. Unexpected expenses will arise (guaranteed), the cash reserve will help you weather the storms without cheating on your budget. Determine risk tolerence for both of you. Remember that inflation is also a risk. Vow not to pay outlandish expense ratios for the investment vehicles you purchase. Best Wishes, may God Bless!
  4. Hello Sierra, Have logged onto your NYC site. If you go to the link, Enroll in DCP, 403's are mentioned several times along with the statement that the 401 and 457 plans were the plans selected. I have more questions than answers. How were 401k/457 plans selected? Can this same process be used to add a 403b? What do other educators want? DCP appears to be an umbrella group. Who runs it? What are the pressure points they respond to? Do you want a 403b plan, better options in the current offerings or both? Are teachers considered governmental employees in NYC?. How do city workers qualify for a 401k? For background info, you may wish to look at www.irs.gov for : IRS Pub. 4406 IRC 401k IRC 403b/457 Plans Sorry, all I can provide is a cursory view.
  5. Hello Sierra, My wife teaches at San Antonio Independent School District (approximately 50,000 students, urban, inner city). Their administrative charge is sixty cents per month, regardless of the amount or number of vendors (fund families or insurance companies) involved. I work at East Central Independent School District( approximately 8,000 students, rural, small town). We presently have no administrative charge, regardless of the amount or number of vendors (fund families or insurance companies) involved. Both school districts use National Plan Administrators. You can learn more about them at www.natplan.com; or perhaps you would prefer: NPA PO Box 161630 Austin, TX 78716 (512) 327 6481 (512) 327 1027 (fax) NPA administrates more than 403b plans; and, to the best of my memory, do business outside the state of Texas.
  6. Perhaps all is not doom and gloom. In Texas, a few years ago, we went to an approved vendor list (you can go to www.trs.state.tx.us for details) There are mutual fund companies on the list including Vanguard, Fidelity, and T Rowe Price. People who contributed to 403's before this list were grandfathered. My wife and I complete a form each year which states we were contributing to these companies before the approved vendor act became law and, even though some of my mutual fund famalies are not on the approved vendor list, we continue, to this day, contributions to these companies. I am new to this forum, but surely there are members of congress who could be contacted; congressmen who would support such a grandfather clause on the national level. Surely, this group is activist enough to begin an e mail campaign to contact all our helpful constituents. Administrative costs need not be a burden to your school district. My wife teaches in a large urban district. Her district contracted with National Plan Administrators( NPA ) to administrate their 403 program. My wife pays a monthly administrative fee of $0.60. Several years ago, the smaller, rural district I work for had concerns about 403 administrative costs brought on by changing federal regulations. I offerred to pay an administrative cost to keep my ability to purchase mutual funds for my 403. They contracted NPA and presently, employees pay no administrative fee. I'm sure there are other firms like NPA, but perhaps your teacher's union, district HR director, or a sympathetic Board Trustee in your district needs to know there are positive solutions to the 403 administration problem. Thank you.
  7. For your retirement planning, I suggest you go to www.irs.gov and download IRS Publication 575, "Pension and Annuity Income", and IRS Publication 590, "Individual Retirement Agreements". These are the definitive works on tax implications for most people's retirement. How many years until retirement? Presently, you can contribute to a Roth IRA as well as a 403b account. In 2006, a Roth 403 should be available. There are several factors which favor converting at least a portion of your 403b to a Roth IRA. In all cases, these factors are a function of the prevailing tax structure and your 403b's required minimum distributions (RMD). If you feel that tax rates will be higher when you are 701/2 than when you are 55, at least a partial conversion to Roth makes sense. Get a RMD table. If, during your life expectancy, the size of your RMDs push you into a higher tax bracket, at least a partial conversion to Roth makes sense; a Roth conversion will lower your RMD. Get a RMD table. If you wish to leave an estate and the size of your 403b causes a tax problem for your heirs, at least a partial conversion to Roth makes sense; a Roth conversion will lower the tax burden. My wife and I retire in 2006. We will wait until the mid term (2008) congressional elections to structure any conversions. We want to see if a flat or consumption tax is in favor by that time. If it is not, we expect tax rates to rise dramatically by 2012 and we will make every effort to make a substantial conversion by that date. When we make conversions, we will use prevailing tax tables as our benchmark; never will our conversion be so large as to move us into a higher tax bracket.
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