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arich

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Everything posted by arich

  1. I actually have a great idea for an article if anyone wants to run with this. In NY the TPA that many districts use is OMNI. They've gotten VERY big. If you look at what they've done it's criminal. They dangled a carrot in front of districts after the 2008 crash when district were cash strapped and offered to absorb the costs of running the 403/457 programs IF the districts would limit their offerings to only companies that were willing to absorb the TPA fees. This about and RFI that essentially completely eliminated the access to Vanguard and Fidelity in most districts. They called this the Omni P3 Programs and it looks great but it smells like............ My sister in law was caught up in this and was so disgusted that she stop her 403 contributions. LONG STORY. My wife and I happen to be in 2 of the 6 districts in the area that do not offer P3. We have access to Fidelity, Vanguard and the NYSDCP (457) of which we max out both plans for a total contribution of $76,000 to Vanguard and NYSDCP. In a time when we're fighting for better and fewer choices, OMNI is making it easier to insurance companies to build a foothold in the NY schools. It would be interesting to see if local unions are even able to negotiate this. I have tried for 4 years to have Vanguard reinstated at my sister in laws district. all my requests to admin and the local union have fallen on deaf ears because I don't work there. I'm in the finishing stages of putting her in Security Benefit NEA Direct Invest to gain access to to Vanguard Index funds. Hear in my district we've essentially chased out all the insurance companies from roaming our hallways. I don't know how put they still get to my young teachers and then I have to show them the way to low cost investing. What do you think, would this make a good article.
  2. I had a lot o colleague that signed up with ING in NY state when it was endorsed by NYSUT. I since have moved the many teachers over to Vanguard or Fidelity. Insurance agents continue to be an issue in our district even though we have some of the best options, Fidelity, Vanguard and the NYS Deferred Compensation plan (457). We also provide all teacher with Fiduciary Financial Advisement paid for by the teachers Trust Fund, I'm the chairperson. I run financial seminars through the year for teachers and Admins and sterr them into low cost investing. My sister in law in a neighboring district got screwed by her district and it's a sad story. Happy to Speak to anyone.
  3. WOW, can we start another thread on this? This verges on criminal! Talk about a conflict of interest. Anthony
  4. 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.
  5. 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 $$$ to Security Benefits. OMNI really had muddied the waters around here as they have tangled a carrot in front of the districts to save a few dollars ($50 per member max) and then given teachers the worst possible choices. Before Omni was adopted Vanguard and Fidelity were widely available. Now just a small handful of districts out of 50 in the area make those available. 457 accessibility also varies district to district. You'd think it would be easy BUT the school districts just say NO and don't give a reason why. Ant
  6. MOEmoney, We're very lucky to have awesome options in my district. Other districts are not as lucky. The TPA OMNI403 has grown in this area and can limit the choices teachers have to mostly insurance products IF the district signs up for their OMNI P3 product. It saves the district $$ 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.
  7. 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.
  8. 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
  9. Thanks Steve, Can you double check that link please?
  10. 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
  11. 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.
  12. 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.
  13. I totally agree. I gave her a list of questions to ask payroll today. It looks like Voya runs the show there.
  14. 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???
  15. 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
  16. 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
  17. 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
  18. Thanks, I'll check it out with the SIL. BTW Omni still has not answered my e-mail.
  19. Omni's P3 program is made up of only providers that have agreed to pay the TPA fees (Third Party Administrators). Vanguard and Fidelity have refused to do that so they are excluded from participating in the P3 program. Omni pitches this program to districts as a way for them to save money so they (the district) don't have to pay the TPA fees. As part of the vendors had top agree to this, "6. Are you willing to pay for a plan sponsor’s TPA fees? If so, do you prefer to be billed 1. monthly or quarterly? 2. for each contributing participant or for each contribution transaction?" Vanguard and Fidelity never has a chance of being part of this "select group" 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.
  20. That’s an incredible list of articles. I’ll be linking to that. Thanks. I’ve been in my district for 24 years. We’ve always had these choices but we’re just one of 4 districts that has these choices in our area. It seems the more financially strapped the district is the more willing they are to take the Omni P3 bait and limit the employees choices to save a few bucks.
  21. Unfortunately no. This is what she has available. Axa Confidential Planning Forester Lincoln financial MetLife Mutual inc NY Life Oppenheimer Riversource Security Benefit The legend Group Voya The works at the Valhalla School District in NY
  22. Were you grandfathered to Vanguard when the district made those other choices available? Were you even told/warned about the fees??
  23. OMNI charges me $3/month to use Vanguard, and Vanguard charges me $15/year to invest in a Target Date Fund. I decided $51/year in fees (on top of expense ratios) was worth it for the privilege of having access to Vanguard, since most of the offerings from my district are not as good. I imagine the OMNI fees won't be going away, so the partnership with Newport looks like it will raise my fees from $51/year to $96/year. PLEASE tell me more about this. I just posted a question about it. how did you get Omni to do this??????
  24. OMNI, the third party administrator, offers districts their P3 program which is loaded usually with terrible choices that are the usual high fee options. P3 is a "Preferred Provider Network." Preferred by OMNI but no one else. My sister in law works in such a district and best of the work is Oppenheimer, or Lincoln Investments. Does anyone know if Omni will allow you to pay your own fees if you want to use a company that is not on your districts lists like Vanguard or Fidelity? It would seem that Omni has built this P3 network based on companies that are willing to cover the administration costs associated with running the 403 so if an individual is willing to cover those himself/herself why would it not be made available. Long story short both Fidelity and "Fidelity Advisors" were on her district's list when she started. She met the "nice financial adviser" and he started her an account. At the time I was with Fidelity and she told me she was too (but she wasn't). In comes Omni P3. They grandfather all the employees using Fidelity and Vanguard BUT she's not using Fidelity she's using Fidelity Advisors and her contributions cease. Omni and the district won't allow her to roll over into Regular Fidelity since they are now NOT on the Omni P3 list and becasue she's never contributed in the past she's not grandfathered. It's been a mess. She has no 457 available. BTW, I have called OMNI and no one ever gets back to me with the answer to this.
  25. Yes, where has it gotten us. I don't see anything happening to bring better choices to unfortunate districts. My wife and I in a great districts with Vanguard, and Fidelity for my 403b and we also have access to a 457 plan. My wife and I max out everything!
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