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Edd

Nebsonline

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Bill of NebsOnline: I have been reading this board for a while now and occasionally I send in a question. I have one for you. I was told by my county that they went with Nebs as a carrier or something like that. I sent in this question some time back but did not get a thorough answer and I hope you can clarify for me for all to read.

 

 

My county person told me that you deal with some manner of the paperwork and you provide a financial planning service for employees. Further, through your company, Nebs, we now have available Vanguard. If an employee uses your financial planning service, the person must pay your fee. If, however, the person only wants Vanguard and does not want to use you as an advisor, he may do so for virtually no Nebs fees. I asked then how does Nebs make a living? They surely do not provide a service for free. The county person assured me that as long as I do not use your service as a financial planner then I do not have to pay any sort of fee, even if I invest in the 403b with Vanguard.

 

Bill, is this absolutely correct?

 

Thank you for your prompt address of this fee issue.

 

Edd

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Edd,

 

I know you addressed this question to Bill and not me. I am not affiliated with NEBSOnilne, nor do I endorse them as a provider, however I have met with them and reviewed their service and spoken with the districts that use their services and the answer to your question is that Vanguard is available with no additional fees - just the fees that Vanguard charges. All providers who want on the list are allowed regardless of whether NEBS can make money on them or not. NEBS makes money by selling products to the teachers of the district, the goal is to sell enough product to make up for the people who choose no-load providers, or other commission or fee-based vendors. They do not exclude competition, which is one thing that makes NEBS a decent choice for certain school districts. I am currently dealing with a TPA by the name of Envoy Plan Services and they sell product as well, but they also exclude all decent providers so as to limit competition and drive business to their own high cost products - this is evil in my mind. I do not believe NEBSonline is the best provider or the ideal provider in the marketplace, but i do believe they fill a gap that needs to be filled at the moment. I don't support the selling of high-cost commission based products, especially as a way to subsidize everyone else - however if my choice was between Envoy & NEBS, I would take NEBS anyday! As long as their is full disclosure of fees, commissions, etc, and a full understanding by the participant than I don't have a major problem - their are bigger issues to be dealt with.

 

Great questions Edd - keep questioning those who make decisions on your behalf and keep them accountable!

 

ScottyD

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Scottyd, thank you for your response. My county contact said basically what you said. I agree with you that excluding decent companies is evil and should not be permitted. Offering stinko and only stinko companies is no offering at all, IMO.

 

I would still like to hear from Bill of NEBS on my question.

 

Bill of NEBS, please answer my question on fees. Thanks.

 

Edd

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Ed,

 

To answer your question, you as an employee of a county doing business with NEBSonline do not have to pay any fees for investing in a 403(b) to NEBS.

 

With that said, if you wish to have access to the NEBSonline Financial advisor services, we will provide those to you in a number of different ways:

 

1. If you elect NEBSonline as your broker/dealer, there are no charges to you, the employee, because when we help you choose your investment the provider that you choose will pay us from the load associated with that product. Nothing additional, you would pay this same load with any other financial advisor for the same product choice.

 

2. If you already have a broker/dealer but you still want to use the advantages of the NEBSonline systems, you can pay a $35.00 per year fee, just like an annual subscription fee to an interactive financial magazine. This will give you complete access to the tool, centralization of information for research and much more.

 

3. In some districts we have had requests to open the platform of products available to their employees. This would include what we call our No-Load platform. For employees who feel savvy enough to do their own research and don't want to pay any loads or commissions to a sales agent, they can access our "No-Load Platform" for $35.00 per year. Within this platform are some of the most well know no loads available in the marketplace.

 

4. Your county has a list of approved vendors that have always been there. If Vanguard is on this list and is an available option of choice, then you are more then welcome to choose this option with no association through NEBSonline. The only thing that you will notice is that NEBS will handle your MAC calculations and IRS compliance, common remit to your provider on the counties behalf and handle all check resolution issues that may arise.

 

Now you ask how we make a living. Well we all know that there are a number of employees that are interested in investing but don't know where to start. There are also a number of employees that have been orphaned by would be sales reps that signed their buyers up and disappeared without a trace, collecting commissions for no service and no help. It is those individuals that we know will take advantage of this service. We also know that there are a number of new employees that are coming in all the time. These employees like NEBS because it gives them a way to use technology to make investment choices. With a growth rate of 5% per year in every district we work with and doing this on a national basis, we can make enough to be profitable and still keep costs low for the employees we empower.

 

 

I hope that this answers your questions. If you have anything further that you would like to discuss, feel free to contact me anytime.

 

Bill

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Hi Bill. Thank you for your reply. #4 of your response says: If Vanguard is...with no association through NEBSOnline. The only thing that you will notice is that NEBS will handle your MAC calculations andIRS compliance...issues that may arise.

 

So, for this MAC, IRS compliance, remit, etc, service, this is done for free for those employees who choose Vanguard but do not choose to access your advisor services or "Platform", etc?

 

Is this correct?

 

Thanks again, Bill

 

Edd

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Hi Bill. Thank you for your reply. #4 of your response says: If Vanguard is...with no association through NEBSOnline. The only thing that you will notice is that NEBS will handle your MAC calculations andIRS compliance...issues that may arise.

 

So, for this MAC, IRS compliance, remit, etc, service, this is done for free for those employees who choose Vanguard but do not choose to access your advisor services or "Platform", etc?

 

Is this correct?

 

Thanks again, Bill

 

Edd

Yes, That is correct. I know that it's hard to believe, but it's true!

 

Good Investing,

 

Bill

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Guest Guest_Joel

Bill,

 

As a VP of Nebs, a broker/dealer, you know or should know that any and all advertising needs to be approved by the compliance department of the Broker/Dealer prior the dissemination of the advertising copy.

 

You have and continue to use this website to prospect for clients. Your posts have not been approved by your broker/dealer. Such unapproved advertising is in violation of the rules as established by the National Association of Securities Dealers.

 

Peace and hope,

Joel

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Bill,

 

As a VP of Nebs, a broker/dealer, you know or should know that any and all advertising needs to be approved by the compliance department of the Broker/Dealer prior the dissemination of the advertising copy.

 

You have and continue to use this website to prospect for clients. Your posts have not been approved by your broker/dealer. Such unapproved advertising is in violation of the rules as established by the National Association of Securities Dealers.

 

Peace and hope,

Joel

Actually Joel, I have not used this website as an advertising site. I have answered the questions posed to me and have not received any compensation for my time and energy for adding information to this site. I don't post on this site for the money. I post on this site to inform and receive information. I don't believe that anyone but you see this as an advertisement. But in any event, thank you for your remarks.

 

Sincerely,

 

Bill

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Bill,

 

Actually, this is considered advertisement, since you do not control the audience that reads your comments. The NASD has a brochuire describing how it views electronic communication.

 

General Compliance Requirements

Electronic communications may be considered either correspondence, public forums, advertisements, or sales literature. These methods of communication are covered under the NASD Conduct Rules.

 

 

Publicly available Web sites are considered advertisements.

Bulletin board postings are considered advertisements.

Group e-mail is considered sales literature.

Password-protected Web sites are considered sales literature.

Individual e-mail is considered correspondence.

Chat room discussions are considered public forums.

All communications with the public are subject to compliance with the NASD Conduct Rules. The rules require communications to be accurate and not misleading. Listed below are highlights of certain Conduct Rules that apply to all forms of electronic communication. Rules that apply specifically to e-mail, group e-mail, bulletin boards, chat rooms, and Web sites may be found in their respective sections. RRs are urged to view the actual rules using the links provided:

 

http://www.nasdr.com/4040.asp

 

Tim

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