Great West

[ft6 0]

I recently was helping a relative trying to determine if he was investing via an annuity in the 457 plan available to him. After spending over an hour on the phone with several reps and calling different locations, I was told that his plan was NOT an annuity. His plan documentation did not help so I called the company. They advised he was not in annuity.

 

I was still very suspicious because it took them so long to give me a straight answer. Several weeks later my brother-in-law received some literature from Great West and after reviewing the paperwork my suspicions were confirmed. Low and behold, he is in fact in an annuity! The lowest cost fund available to him was 1.75% and that was an S&P 500 Index fund plus an annual account maintenance fee!

 

Beware if you are employed in the sunshine state of Florida and are investing in a Great West 457 plan. You are more than likely invested in a high cost annuity that's reducing your investment returns by well over 1% because of the high fees associated with these insurance products. As usual, investor beware...

[BCinMI 0]

Unfortunately, in most districts I'm aware of, 457 plans are extremely limited in their investment choices. Here in Michigan, a school district could have 100 403b providers and maybe 2 457 providers. If you want the 457, you get what they give you.

[Guest Sierra]

Unfortunately, in most districts I'm aware of, 457 plans are extremely limited in their investment choices. Here in Michigan, a school district could have 100 403b providers and maybe 2 457 providers. If you want the 457, you get what they give you.

 

 

Does your state's 457 plan allow school districts to opt in?

 

Thanks,

Joel L. Frank

[BCinMI 0]

It is not a state plan, the districts I know of have their own 457's established. The only account through the state is the pension; 401a, 457, 403b's are all district specific.