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txishome

Aig Valic Question

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My wife has a new job with a hospital that uses AIG Valic for their 403(b) investments. Their investment choices seem very limited and I have heard little about them. Does anyone have any information, good or bad, about them that you would like to share? Thanks ahead of time!!

 

txishome

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Guest Sierra

If you believe that paying 2 percent or more each payday to ACQUIRE an investment is bad then AIG Valic is bad.

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What other investment companies are offered?

 

 

So now I am officially depressed. They currently have no other investment options offered. I plan to meet with the AIG guy and pepper him with fee questions. As far as I can tell from the literature, 21 funds are offered (mostly American & Dryfus). My quandary lies in the math. It will be darn near impossible to calculate the pre-tax benefits, the fee problems and the employee contributions vs. the taxable growth, better investment options and lower fees. Who has that kind of time!!!

 

I think I'm better off whining and trying to get Vanguard in the loop.

 

txishome

 

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Pathfinder,

 

Yes, we whine when we cannot get access to decent, low-cost alternatives to the garbage that so many districts dish out.

 

As for our "advice," folks like Ira, Sierra, and Steve offer far better advice than what was provided to me by my former advisor. I wish that I had known a fraction of what they know when I first started investing.

 

Oh, and your line about the "cheese" that we offer? That's a one considering the stale cookies that predatory salesmen in faculty lounges have been offering for years.

 

txishome,

 

You might consider looking into a Roth IRA with low cost index funds from Vanguard, Fidelity, or T. Rowe Price as an alternative to the high fee products that a salesman is attempting to foist upon you.

 

How's that for "advice," Pathfinder? Roth IRA ... low cost index funds ... reputable investment companies. Boy, the things people suggest on this forum!

Edited by apteacher

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txishome, As AP recommended, a ROTH IRA is a preferred investment. Afterward, you can invest in a low cost tax vechicle(outside a 403b) such as Vanguard Total Stock Market fund, or Fidelity Spartan Total Stock Market Fund.

 

I have a riddle for you, ..How do you know when a AIG VALIC guy is lying?..........He is moving his lips,............... or when he is not moving his lips and omissions of various costs are be hidden from you

 

How many employees are there in the hospital that employs your wife. What necessary steps are involved to get another vendor such as Vanguard, or another low cost, no load fee company.

 

 

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Guest TR1982

Is that the best you can do? It's so funny to watch the reactions here when anybody "challenges" you. What a bunch of thin skins!

 

By the way, why are you telling the guy negative information about another company AND THEIR EMPLOYEES when you don't even know what product they are offering or the advisor? Why don't you let him get the information and then decide? I guess that would be to smart. I suppose it's always better to shoot first and ask questions later. Don't they teach that in school? I thought so.

 

I also love the way some of you recommend strategies for people who post here. I suppose you know everything there is to know about their circumstances and that the Roth IRA is the "best" choice for them? Well, I guess you get what you pay for!!

 

"It will be darn near impossible to calculate the pre-tax benefits, the fee problems and the employee contributions vs. the taxable growth, better investment options and lower fees. Who has that kind of time!!!

 

I think I'm better off whining and trying to get Vanguard in the loop."

 

I guess researching your investments and understanding them is less important than whining to somebody else. Now that is a mature way to think. And we wonder why Americans are in a retirement savings crisis.

 

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TR,

 

Thin skin? That is because my skin was burned by lousy investment "advice" from a professional peddling inappropriate products. You bet it's thin. It was seered pretty badly.

 

Also, I never stated that a Roth IRA was the "best" choice. I suggested that he "consider" it.

 

I do agree, however, that folks should research and understand investments. I suspect that txishome came to this forum to do just that.

 

 

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AP..........

 

Previously you wrote, "As for our "advice," folks like Ira, Sierra, and Steve offer far better advice than what was provided to me by my former advisor. I wish that I had known a fraction of what they know when I first started investing"

 

Actually, I also wish that I had a fraction of what we know (including you AP) when I started.

 

Txishome, As you can deduce , TR is a professional "sales advisor" who gets upset when we provide knowledge about the pitfalls of the investing world.

 

 

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Ira,

 

It's quotations like this that are amusing:

 

"I also love the way some of you recommend strategies for people who post here. I suppose you know everything there is to know about their circumstances and that the Roth IRA is the "best" choice for them? Well, I guess you get what you pay for!!"

 

Neither of us was suggesting in any way that we knew all of the circumstances of txishome. We were simply trying to offer some suggestions.

 

Also, TR doesn't seem to understand that in investing, it is advantageous to pay less, not more! If I pay a 5.75% load, that is not getting me more, it is getting me less!

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Guest TR1982

Apteacher,

I am sorry that you had a bad experience with somebody in the financial services industry. That is unfortunate. I've also had bad experiences with some of my kids' teachers. That is unfortunate as well. I don't, however, think that everybody in teaching is bad or inept or unethical. I accept that any profession has it's share of people who don't do a good job. Why is it that you and Ira seem to extrapolate that since you had a bad experience that everybody who works in this business is crooked or unethical? I find that to be amazing. If I said that about teachers you would be down my throat and you would be correct. Why should I give you all a pass on that? There are many honest and ethical people in this business, some of whom work for the companies that are maligned here time and time again with no little or no evidence to support the criticisms that are made. It's pretty hard to take seriously the suggestions of someone who says that every advisor in a particular firm is a liar. I think this discussion board is not well served by that kind of comment.

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Txishome, If you decide to go for the AIG sales presentaation, please get back to us, and let us know if the salesman volunteers information about all of the various sales charges that his company makes, and that there are other choices available to you at no load , low expense fund company such as Vanguard where there are index funds that average only o.2 of a percent a year allowing you to realize more.

 

Anyway, the bottom line is that no matter what the salesperson says, Valic, load fund and insurance companies are very poor choices. The only way someone will buy a 403b load fund from one of these sales people is that the investor does not have all necessary information to make an intellignt choice which these advisors do not give(if they want to make a sale).

 

 

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Guest TR1982

Txishome,

I would suggest that you have an obligation to find out what the employer's options are. You should find out what the investment choices are and the expenses. I am certain that the company representative will be glad to provide that information to you.

 

Once you have done that you can begin to evaluate whether or not that is the best option for you. Maybe it is, maybe it is not.

 

The idea that the company representative has an obligation to inform you of other options outside the scope of what they are presenting you is ridiculous. When you go to the Honda dealership you don't expect their employees to recommend that you go to the Toyota dealership nor do you expect them to present the features of Toyota's product. That is YOUR responsibility.

 

Lastly, don't depend on the whine crowd here to tell you whether something is a poor choice. Decide for YOURSELF based on YOUR circumstances, not theirs'. After all, that is what "they" are promoting.

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