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JudyS

New Valuebuilder

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Fellow Travelers:

 

It took them long enough, but here's a new product by Valuebuilder, a self directed option. See it at: http://nea.securitybenefit.com/neavaluebui...elfdirected.htm

 

A call and perusal of the site reveals a $30 charge for a plan prospectus, $20 yearly administrative fee for smaller accounts, and some lack of clarity (to me, anyway) about the monetary aspect of the relationship between Security Benefit and NEAMB. According to the person who answered my call at the 1-800 number, the funds are institutional level offerings.

 

What do you all think?

 

JudyS

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Fellow Travelers:

 

It took them long enough, but here's a new product by Valuebuilder, a self directed option. See it at: http://nea.securitybenefit.com/neavaluebui...elfdirected.htm

 

A call and perusal of the site reveals a $30 charge for a plan prospectus, $20 yearly administrative fee for smaller accounts, and some lack of clarity (to me, anyway) about the monetary aspect of the relationship between Security Benefit and NEAMB. According to the person who answered my call at the 1-800 number, the funds are institutional level offerings.

 

What do you all think?

 

JudyS

Judy,

 

As one who has hammered Valuebuilder, I must say that this self directed option is a decided improvement. There are no front end charges, M&E expenses, or any of the assorted !@#$ that is associated with the other Valuebuilder. Stock index funds are available, and they charge .50. Not bad. I would like to see a bond index fund, but PIMCO is certainly a good alternative.

 

You asked about the relationship between Security Benefit and NEAMB. Here it is from the web site:

 

"Security Distributors, Inc. and certain of its affiliates (collectively referred to herein as “Security Benefit”) make available investment products under the NEA Valuebuilder Program pursuant to an agreement with NEA’s Member Benefits Corporation (“MBC”), a wholly-owned subsidiary of the National Education Association of the United States (“NEA”). During the past fiscal year, Security Benefit paid MBC approximately $510,000 per quarter, in exchange for which MBC provided certain services for the NEA Valuebuilder Program."

 

In other words, Security Benefits annually pays >$2 million to NEAMB. In exchange, teachers who opt for the other Valuebuilder get screwed. That program should be consigned to the ash heap of history.

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