Jump to content
Sign in to follow this  
tony

Will Vanguard Pull The Rug From Under Us

Recommended Posts

 

 

 

I was wondering where all these rumours that vanguard will get out of the k-12 403B market are coming from if the organization itself is denying it?

 

Also since they don't seem to want to give us advanced noticed of their intentions does that mean on December 31 of this year is the day we will find out?

 

This is definetly the double talk I was not expecting from Vanguard. Please Vanguard , if you plan on pulling out of the 403b business please give us advance notice so school systems and investors can plan accordingly.

 

 

Tony

Share this post


Link to post
Share on other sites

Hi Tony,

 

If they pull out of K12, what about all of the other not for profit employers? I don't know what you mean by "pulling out of the 403b business?" any more than what they have not done over the years, sign the ludicrous HH agreements. The problem is not VG, it’s our employers who have gotten lazy because the insurance industry took care of all liabilities that were then supported by state laws and attorney general's opinions.

 

You make it sound like VG will no longer have 403b accounts. I can't imagine VG NOT accepting new 403b accounts. But then again, the 403b system has always been a mysterious and onerous rip off with regulations that help the agents resulting in an open season on naive teachers.

 

It’s a strange system that perhaps has seen its day. VG is once again the leader that knows that the 403b system is flawed and totally counter to VG’s investment philosophy. Philosophies that are at the opposite end of the spectrum cannot work.

 

Have a great day,

Steve

 

Share this post


Link to post
Share on other sites

Tony,

 

According to a rep from my district's TPA, Vanguard will continue to be offered by my district. She said that both the district and Vanguard have signed off on the appropriate documents. So, if this person is correct, Vanguard has not left the 403b market.

 

 

Share this post


Link to post
Share on other sites

 

 

AP

 

Thats great news. Is it at no additional expense?

 

 

Steve,

 

I am just hearing rumours thats all. I also heard American Funds is getting out of 403B k-12 business too.

 

 

My personnel director says Vanguard will stay with us IF they don't jump ship. He has even heard they may get out of the k-12 403b market.

 

 

Perhaps the insurance companies are spreading the rumours??

Share this post


Link to post
Share on other sites

Tony,

 

According to the TPA rep, there will be no additional cost. I specifically asked that question of her. The transition is supposed to be seamless. When January, 2009 rolls around, my contribution should be made just like normal.

 

We shall see.

 

And now if we could only get a decent 457 plan. We're stuck with Value Killer at this point, and there seems to be absolutely no interest on the part of the district to change that.

 

 

 

Share this post


Link to post
Share on other sites

umm.. What is Value Killer? Sorry I am still trying to learn here. :)

 

Ah, then let me tell you about Value Builder. I call it Value Killer because it is such a poor program. It is the NEA endorsed plan run by Security Benefit. Security Benefit pays NEA Member Benefits Corp. about $2 million a year to defer advertising costs and the like; to many, that money seems like a payoff to get NEA's endorsement.

 

Value Builder has poor choices, and expensive ones at that. It includes a variable annuity option that charges a stiff mortality and expense fee in addition to the other fees you pay.

 

Simply put, it is an expensive and lousy product.

 

However, there is a new "direct invest" option that may prove to be far better, and is worth looking into.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...