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arich

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About arich

  • Birthday 12/29/1971

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  • Gender
    Male
  • Location
    New York
  • Interests
    Fishing and Side Hustles

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  1. WOW, can we start another thread on this? This verges on criminal! Talk about a conflict of interest. Anthony
  2. Yes, The carrot is an elimination of administrative fees. As far as I can see teachers who had Vanguard or Fidelity are grandfathered BUT when OMNI comes in with their P3 Offer the financial company (insurance company) cover the admin expenses that would normally be covered by the district and ONLY the expensive options are offered to the teachers. https://www.omni403b.com/p3.aspx The info below on how P3 Came to be is fascinating. They essentially created an RFI Application that they knew would all but eliminate Vanguard and Fidelity from teachers options. School districts save about $40-50 per member and teachers get screwed. The reason I know so much about this is because my sister in law got screwed. She had Fidelity for about 12 years and was contributing. OMNI came to her district and they adopted Omni P3. She was told that she'd not longer be able to contribute to "Fidelity" while her colleagues were grandfathered with Fidelity. Turns out she had "Fidelity Advisors" which was being eliminated all together and they would NOT get her continue with Fidelity. So she did the worst thing she could have done, she stopped contributing. That was around 2010 and she's missed out on the ride we've been on for 8 years. I have written to her Asst. Supt for Finance, Her Union Officers, etc but no one would help her. They won't even add a 457 option. So that's why I'm here trying to find the best of the worst for my sister in law. Anthony --------------------------------------------------------- Since its initial unveiling in 2011, interest in OMNI’s Preferred Provider Program (P3) has been truly exceptional. The P3 Advisory Committee organized key aspects of this exciting new service model that is revolutionizing the relationship between employers and their 403(b) providers. Here are the steps taken to develop the program: Advisory Committee made up of School Business Officials hire National Consultant to Develop Request for Information (RFI). Committee identifies over 80 criteria to evaluate Service Providers on. RFI Application sent to over 200 Service Providers. Advisory Committee evaluates and scores responses from Service Providers. Most major Service Providers meet or exceed criteria in RFI. Service Providers awarded P3 status enter into an agreement with Omni to pay for Plan Administration expenses associated with their active accounts in Districts. Approximately 90% of all major Providers participate in P3.
  3. I don't want to hijack the thread so this will be brief. The problem is with Security Benefit. I had to speak with at least 6 reps on different days to get someone that knew about NEA Direct with NO ADVISOR. Every rep told me that an advisor had to set up the account. I haven't seen my sister in law in a few weeks, she filled out some paperwork and was to submit it. Onces that is done then we'll direct the TPA OMNI403 to start sending $$$ to Security Benefits. OMNI really had muddied the waters around here as they have tangled a carrot in front of the districts to save a few dollars ($50 per member max) and then given teachers the worst possible choices. Before Omni was adopted Vanguard and Fidelity were widely available. Now just a small handful of districts out of 50 in the area make those available. 457 accessibility also varies district to district. You'd think it would be easy BUT the school districts just say NO and don't give a reason why. Ant
  4. MOEmoney, We're very lucky to have awesome options in my district. Other districts are not as lucky. The TPA OMNI403 has grown in this area and can limit the choices teachers have to mostly insurance products IF the district signs up for their OMNI P3 product. It saves the district $$ because the providers agree to pay the admin fees instead of the district. Obviously Vanguard and Fidelity would never do this. I'm in the process now of setting up my sister in law with Security Benefit/ NEA Direct and I can tell you the process is not easy!! Dozens of phone calls. I'm a 25 year NY teacher and so is my wife. We max out our 403s with Vanguard, We max out our 457s with the NYSDCP We max out our backdoor Roths We max out the kids NY saves 529 plans. and we send any extra money from our side hustles to an after tax Vanguard Investment account. I still have a little $$ from an old business account in UBS but I'm in the process of that to Vanguard.
  5. Which funds are you using for your three fund portfolio? I've got 100% in NYSDCB Equity Index Unitized Account and then balance the over all portfolio with my VAnguard 403 funds.
  6. Dont forget out doubling your 457 contribution in the three years leading up to retirement. If you're over 50 and within 3 years of retirement, 403 $19,000 + $6,000 457 $19,000 + $19,000 (little known catchup) IRA $6,000 + $1,000 Total: $70,000
  7. Thanks Steve, Can you double check that link please?
  8. I'm working with two out of district teacher friends who have terrible options through OMNI 403 TPA. In your Nov Podcast you discussed using Security Benefit and NEA Direct. Well they both have access to Security Benefit so can you please explain this process so I can get them started? I am having both of them start Roth IRAs and one of them also has access to a 457 (NYSDCP) so she is starting that immediately. One has a significant amount of cash saved while the other does not. Thanks, Anthony Rich
  9. arich

    Retire Early

    Hey Dan. Thank for the reply. Search you email for my name. We’ve spoken before. My big concern is having a lapse in employment at my district and the district not honoring the retiree benefit. It’s at least a $15K annual benefit. I really had everything planned to go out at 52. Who knows. Maybe when I reach that age I won’t want to retire but it’ll be nice to know you can. You know FU money. Who am i quoting.
  10. arich

    Retire Early

    My wife and are started teaching in NY when we were 22. She’s now a director of technology in the teacher’s union and I’m a technology teacher. We work extremely hard with a second business and save 50-60% of our income. This is our 24th year of teaching and we’d like to retire after 30 years at 52 1/2 years old. We know we won’t be able to access our NYS pension until our 55th birthdays 2 1/2 years later but we’ve been planning for this. The kids both finish college when we’re 52. Their college expenses are both fully funded now and we continue to contribute to it for grad school should they pursue careers that require it Retirement to us means leaving teaching and “working” remotely on our business to continue pulling in an income. The problem we’re facing is our districts will not not honor their health care contributions after “retirement” (60-70%) because as they say we’re not eligible for retirement. There is nothing in either of our contracts about the age of “retirement” or what constitutes retirement or the number of years you have to work for benefits. I have not asked if we can go on Cobra for 2.5 years and then our benefits kick in or if they would consider this a resignation and we’d be walking away from our healthcare benefit. Wondering if anyone has experience with this or any ideas how we might achieve our “early retirement.” **** We both max out our 403s, 457s, backdoor Roths, 529 plans, fund a Defined Benefit plan through the business and contribute the rest to a taxable account.
  11. I totally agree. I gave her a list of questions to ask payroll today. It looks like Voya runs the show there.
  12. I'm helping a young friend out who just graduated and got a job in Temple Arizona. She works for me during the summers in NY and I've been educating her on retirement investments. She called me last night from a presentation with Voya at her school district. It appears that this is here only option. I found a few links: http://www.tempeschools.org/home/showdocument?id=13640 http://www.tempeschools.org/our-district/departments/finance/tax-deferred-annuities-retirement-savings-plans http://www.tempeschools.org/home/showdocument?id=81 This is what I am finding, and she says she can gain access to Vanguard Index Funds. Contract charges • No annual maintenance fee • An annual asset based service fee of 0.30% will be assessed on all investment options, including Voya Fixed Plus Account III • Fund management fees and fund operating expenses will apply. Fees depend on the investment option chosen. Please refer to the individual Fund prospectuses for fund fee information. • No contract withdrawal charge – this allows full portability at separation from service or retirement (withdrawals from the 403(b) plan prior to age 59½ will be subject to an IRS 10% premature distribution penalty tax). This IRS premature distribution penalty tax does not apply to 457 plans. Thoughts???
  13. I looked at my Vanguard account and the amount being deposited is the exact same amount being deducted from my paycheck. I do not see the $3 being removed anywhere. Anthony
  14. Obviously but your sister does have Security Benefit Direct Invest. I contacted them yesterday for my SIL. Krow36 had posted that suggestion. Thanks for your help and suggestions
  15. 457 are not available in all districts, districts must elect to offer it as OMNI charges the district a fee to administer it. Omni is NOT helping the situation here
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