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DrDaddy

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  1. DrDaddy

    403(b)

    Well, a lot has happened since I first asked the question about Travelers. The school district went out to bid for a new vendor. The school district will be putting in a matching plan and is eliminating it's retirement pension plan. There will be 1, possibly 2 vendors. The match will be 20 cents on the dollar up to 3% of compensation. The vendor they have chosen is AIG-VALIC. Anyone know anything about AIG-VALIC?
  2. Get a copy of the contract if you can. TIAA-CREF has some contracts that will only let you take money out at retirement and you might have to annuitize. Check the contract and you might want to show the contract to your attorney.
  3. Most states have a free look provision, 10 to 20 days. The "Free Look" starts when she received the policy. If she is still in her free look, call company and advise that you are exercising the "Free Look" provision. Send it back to the company by US Mail with Return Receipt. Call the payroll office and stop contribuitions immediately. The company should refund the money back through the payroll office since it was pretax. Payroll should then pay your wife. That is how it works in my wife's district, because we just went through it. Good Luck!
  4. If there is no match in your employer plan, why don't you consider a no load investment away from your employer? If your employer allows multiple venders, talk with you HR Benefits manager about allowing you to invest in a no load 403b. Some districts require maybe 25 participants before they set up a new payroll slot. Talk with your co-workers. If there are enough of you, the district will most likely try to accomodate your request!
  5. If you borrow from your 403b or 401k, you are borrowing against your own money. It does not affect your credit score. But if you fail to repay the loan in a timely manner or just do not repay it, the defaulted loan will be reported to the IRS and you will owe taxes & a 10% penalty. The other thing to consider is that if you borrow, you will be taking money out of the market. If your money was earning and average of 8% per year and you had a 6% interest rate on the 403b/401k loan, the real cost of that loan is the lost earnings plus the interest rate of the loan, a total of 14%. In my opinion, I would only take a loan if it were a last resort. It will not affect your credit score.
  6. Also, I was given some info about Travelers Life & Annuity. If Smith Barney is using Travelers Life & Annuity, then you should look at that topic in this forum. If Smith Barney is using an annuity, that broker needs to make money to stay in business with Smith Barney. You better really look at those fees as they will probably be pretty high. Based on what I have learned, there are lower fee based products out there that you could invest in! Good Luck!
  7. Smith Barney is part of Citigroup. They have few good funds, but not many. These funds are sold only by Smith Barney Brokers, Primerica, & Citistreet representatives. Both companies are owned by Citigroup. I would check to see what share classes are being offered. Look at whether you are buying an annuity or pure mutual funds. Check to see if there is a termination charge and look at all the fees. Make sure that your money is not restricted if you need it for an emergency. Make sure you understand how the product works and you are disclosed all the fees before you buy into the plan. Make sure that if you terminate employment, that you can rollover your money to another plan without penalty. Get it in writing!!! Make sure you compare all share classes before you invest. Get a prospectus and don't sign up for anything unless you understand fully what you are buying! By the way, Smith Barney is a sister company with Travelers Life & Annuity. Good Luck in your quest!
  8. DrDaddy

    403(b)

    Frank, Thanks very much for your advice. I will do exactly what you have advised! Thanks again for your help! Best regards, DrDaddy
  9. DrDaddy

    403(b)

    Is there a 403(b) that has low fees that also provides a full service advisor? If so, please advise. Maybe we could get them in our school district! Thanks!
  10. DrDaddy

    403(b)

    The 2.25% appears to be incorrect. There is a 1.25% M&E, and the average underlying expenses are .75%. That makes the total charge of 2% with a $30 admin fee. This is the info that is in the Prospectus. The school district does not have TIAA-Cref of T Rowe Price. It has only annuities. WE liked the fact that we were going to get annual reviews with free rebalancing. I nor my wife have the time to watch the market. If we want full service, do you really think that paying 2% is too much? If so, do you have any ideas where we can invest the same amount of money? My wife was planning to max her 403(b). Thanks, DrDaddy
  11. DrDaddy

    403(b)

    My wife met with a Travelers Life & Annuity representative. He was offering her an annuity called Universal Annuity. It has a $30 annual contract charge and a 1.25% M&E as well as underlying fund expenses. Does anyone know if this is a good annuity to invest in? It looked pretty good, but I wanted to get others opinion. Thanks!
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