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Tampa Gator

Finally - Changing Retirement Plan Company

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I was on this board about 2 years getting help with removing VALIC from my company's 403b plan. Unfortunately through a ton of work, I was unable to convince my boss to make the switch. It wasn't ultimately his fault, but more of various political reasons tied to the University of South Florida in Tampa. Thanks for everyone who helped me back then.

 

The good news is I am now the CEO (3 months) of a general surgery practice in Tampa Bay and I am in the process of making the switch from AIM investments with high fees to Vanguard. Vanguard is coming in during the beginnning of February to make the presentation, but I am pretty sure that this will be an easy one with the my position and the support that I already have from my head doctor.

 

I can't wait to final have a change made that will help all the employees of the company, including the 12 physicians. I know they are all going to appreciate, especially the physicians considering they put over $40k into their accounts each year.

 

Thanks,

 

John (aka Tampa Gator)

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In 1990, I started college funds for my kids with a predecessor of AIM, the Financial Funds Group. Financial was then bought out by INVESCO, which was then bought out by AIM.

 

I invested in a solid no load fund, Financial Industrial Income. The corporate buyouts led to a flurry of name changes for the fund, and a flurry of portfolio manager changes. INVESCO and (especially) AIM drove that fund into the ground. The fund became a consistent underperformer, then it lost assets, and then it raised fees. What a mess.

 

I learned the hard way. I will no longer trust an actively managed fund because I can never be assured that the portfolio mangers who have done so well will be there in the future. This is yet another reason why I use passively managed index funds.

 

I'm very glad that you will be going with Vanguard. What a change from AIM!

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Hi John,

 

Welcome back. Nice to hear from you again. Its a pleasure and a necessity for me to experience good people such as you, who only want to look out for your employee's best interests. From my experience, nobody looks out for the best interests of educators in K12 school districts and teachers union. There might be a good person here and there, but they don't implement policy. Those of us who openly challenge policy are called pariahs.

 

I have a similar experience with Invesco as apteacher reported. I started with Invesco thru my school district in 1994. Road it thru the tech bubble where I saw my money go through the roof in the Tech. fund (144% in 1999). I evidently lost all of that growth with the subsequent economic downturn, 9/11 and when AIM took over. I transferred what I had left into Vanguard two years ago and never looked back. Like apteacher, I do not trust active management for the simple reason is that they cannot predict future growth with all of their experience and resources available to them.

Take care,

Steve

 

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