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Steven 12

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  1. a salesman from horace mann sold a school teacher a fixed indexed annuity. I guess its with lincoln financial. Does anyone know how this works and is there a way out of it. Apparently she had an IRA and he converted it to a fixed indexed annuity, probably to get a big commission for himself. how bad a product is this for someone age 53? Also regarding investing for 403(b), anyone have thoughts on fidelity contra fund vs. some of their index funds?
  2. The sharks will tell you anything to get you to buy their product. They ONLY think about themselves. 20 years ago when I was in your place, I knew that it was wrong for this agent to tell me with a straight face that she would never recommend mutual funds to teachers because they are too risky. That was my aha moment. I never talked to one of those rip off artists again. I made it a life long committment to learn to invest myself and teach other teachers to stay away from those holigans. If I had fidelity, I would invest in the total stock market index, the total international stock market index and according to your age, if you are 45, for example, about 45% in the total bond market index. Very simple portfolio for a 45 year old : 35% in the Total Stock Market Index 20% in the Total International stock market index 45% in the Total bond market index. Then once a year or so, rebalance to this allocation. When you reach 50, increase your bond allocation and reduce your equity allocation. You get broad deversification with low costs because with an index, there is little or no trading because there is no manager to mess things up. You strive to get the market averages. If only I got the averages over the years, I would have had twice in my portfolio, but because of stupid mistakes in learning this stuff with the first buying two fixed annuities and paying $6000 in surrender fees, I only earned less than the market averages. So much for the hucksters that are lurking EVERYWHERE. Hope this helps, Steve What about the fidelity freedom funds, are the fees too high at around .75%? Should people stay away from those and try to just get in spartan funds? How do you tell the school you're account # for fidelity after you open an account with fidelity. Will the school know where to direct the money for the 403(b) if you open a new account with fidelity via mail?
  3. The sharks will tell you anything to get you to buy their product. They ONLY think about themselves. 20 years ago when I was in your place, I knew that it was wrong for this agent to tell me with a straight face that she would never recommend mutual funds to teachers because they are too risky. That was my aha moment. I never talked to one of those rip off artists again. I made it a life long committment to learn to invest myself and teach other teachers to stay away from those holigans. If I had fidelity, I would invest in the total stock market index, the total international stock market index and according to your age, if you are 45, for example, about 45% in the total bond market index. Very simple portfolio for a 45 year old : 35% in the Total Stock Market Index 20% in the Total International stock market index 45% in the Total bond market index. Then once a year or so, rebalance to this allocation. When you reach 50, increase your bond allocation and reduce your equity allocation. You get broad deversification with low costs because with an index, there is little or no trading because there is no manager to mess things up. You strive to get the market averages. If only I got the averages over the years, I would have had twice in my portfolio, but because of stupid mistakes in learning this stuff with the first buying two fixed annuities and paying $6000 in surrender fees, I only earned less than the market averages. So much for the hucksters that are lurking EVERYWHERE. Hope this helps, Steve but would it be better to just leave the money in the variable annuity if you're around 50 years old and have under $40,000 in there and start a new 403(b) with fidelity in mutual funds and not pay the surrender charges which are very high?
  4. The sharks will tell you anything to get you to buy their product. They ONLY think about themselves. 20 years ago when I was in your place, I knew that it was wrong for this agent to tell me with a straight face that she would never recommend mutual funds to teachers because they are too risky. That was my aha moment. I never talked to one of those rip off artists again. I made it a life long committment to learn to invest myself and teach other teachers to stay away from those holigans. If I had fidelity, I would invest in the total stock market index, the total international stock market index and according to your age, if you are 45, for example, about 45% in the total bond market index. Very simple portfolio for a 45 year old : 35% in the Total Stock Market Index 20% in the Total International stock market index 45% in the Total bond market index. Then once a year or so, rebalance to this allocation. When you reach 50, increase your bond allocation and reduce your equity allocation. You get broad deversification with low costs because with an index, there is little or no trading because there is no manager to mess things up. You strive to get the market averages. If only I got the averages over the years, I would have had twice in my portfolio, but because of stupid mistakes in learning this stuff with the first buying two fixed annuities and paying $6000 in surrender fees, I only earned less than the market averages. So much for the hucksters that are lurking EVERYWHERE. Hope this helps, Steve
  5. I believe teachers are naive and insurance agents find they easy prey to sell them variable annuities with high fees. They do it to make the commission. I want to switch into fidelity from horace mann. who has account with fidelity and what mutual funds are you in? I would like to find out more to get the funds with lowest fees. Horace Mann tried to say that their are hidden 12(b) fees in regular mutual funds, does anyone know anything about this or is this just a scare tactic? They offered me a 3% fixed annuity with no fees to stay with them, you're thoughts?
  6. so why does Horace Mann sell these variable annuities to teachers in there 40's? Not just Horace Mann. Teachers are about the only group of professionals left that the annuity industry can take advantage. No other group will tolerate these kinds of high priced plans, nurses, professors, MDs, city, state, federal and law enforcement. All have better plans than teachers. Why? It boils down to culture of K12 school district that have no oversight from the district, the union or the regulators who oversee these plans. From 1960 to 1998, nobody said anything to stand up against this practice. I can speak for California. Here not one district administrator, not one union leader, not one reporter said anything about this practice until 1998 when Kathy Kristof of the LA Times wrote about yours truly effort when I tried to get Vanguard on my district list of available choices. From that time until now there have been numerous reports from teachers all asking the same question as you and reporting horror story after horror story about annuities in 403b plans. In the last 13 years, not much as changed, in fact, the very lastest report published last month, our California Teachers Association wants to keep the status quo in place! Unfortunately, the unions are absolutely useless, we have all kinds of reasons to wonder about their reasons, they are very secrete because the members simply do not complain. Bottom line is that there are not enough people like yourself that will call or write your union, district office, board members to demand better 403b choices. I have been posting here since 2001 and about 15-20 teachers have asked the same question you have asked. There should be 15-20 teachers per day complaining and then something would happen to change this sorry situation. Here is a link to the biggest story about this problem that was published in the front page of the LA Times: http://articles.latimes.com/2006/apr/25/business/fi-retire25
  7. so why does Horace Mann sell these variable annuities to teachers in there 40's?
  8. Fidelity's Spartan funds are among the lowest around. Fidelity just added its former US Bond Index fund to the Spartan lineup, and reduced the expense ratio to .22. Does it make great sense to leave Horace Mann variable annuity with 1.25% mortality fee and go with Fidelity mutual funds?
  9. Fidelity's Spartan funds are among the lowest around. Fidelity just added its former US Bond Index fund to the Spartan lineup, and reduced the expense ratio to .22.
  10. Please let me know the best funds to invest with in fidelity. I was in Horace Mann variable annuity with high fees and want to start all over with fidelity and try to get a better return. Is there a particular fund or funds which is better with lower fees?
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