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jphillips

I Need Info On 457 Plans

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Hi. I am new to this site and found it by doing a google search for 457 plans. My school district has just implemented a 457 plan and I am trying to get some basic info on how they work, etc. I went to the 457bwise features page and 2 of the links to the publications listed there are no longer valid links. Where can I find SIMPLE, EASY to understand information on 457 plans?

 

Jim

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Guest Dave

JPhilips,

 

I was in the same shoes as you not too long ago and found a lot of great easy to understand information on the 457b website under the "457 FAQ" section. I recommend looking that over.

 

Another thing you can do is call your business office and find out who your provider is (there's usually only one). Also ask if the district has plans for some kind of 457 plan rollout meeting where people unfamilar to the 457 plan can get a basic plan overview and have any questions answered.

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Guest Guest_Redwoods

You may want to log onto www.nagdca.com. This is the National Association of Government Defined Contribution Administrators. Let us know what they got.

 

Peace,

Joel L. Frank

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Hey jphillips,

 

Please let us know what links are not working on 457bwise. In the meantime the following from that site should be of value (and are working):

 

457(b) FAQs

http://www.457bwise.com/faqs/index.html

 

Start a 457(b)

http://www.457bwise.com/wisemoves/start457.html

 

The 457(b) Commandments

http://www.457bwise.com/features/457bcommandments.html

 

The 457(b) for Educators: A Planner's Take

http://www.457bwise.com/features/planner_sd.html

 

Read Between the Numbers: 403(b)s and 457s

http://www.457bwise.com/pdf/tt0603_403b457.pdf

 

All 457 Plans Are Not Alike: Governmentals, Tax-exempts and Top Hats

http://www.mpowercafe.com/retirement/features/features.1.3.3_12182002.html

 

Overview of Final 457 Regulations

http://benefitslink.com/articles/washbull030721.shtml

 

Dan Otter

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Jim,

 

You said your sd just implemented a 457(b) plan. Why don't you start with the Plan Administrator's office to get a good deal of information you can count on. Who is the investment provider?

 

Peace,

Joel

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Jim,

 

Please describe the investment options. Are they load or no-load funds?

 

Joel

I have not met with them yet so I can't answer that. The reason I originally came to this site was to try to get information prior to meeting with the representative.

 

I do know that TIAA is not being offered. I asked the HR person in charge of the 457 for the school district about this and she told me that TIAA was only interested in handling the 457 if they were the sole provider. The district felt that they should have the right to offer other providers to their employees. She also said that while TIAA would do mailings to the employees they were not able to provide ongoing campus reps or informational meetings for the staff.

 

Isn't TIAA's position that they have to be the sole provider non-competitive? Shouldn't we have a choice if wqe want one?

 

Jim

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jphillips,

 

A strong case can be made that a sole provider best serves the interests of employees. How can this be you might ask? The caveat is that the correct sole provider must be chosen. And before you jump up and down with another TIAA conspiracy rant, this doesn't mean that only one company out there has the capabililty to be the correct sole provider. Let me explain... If a district or employer does its due dillegence during the Request for Proposal (RFP) process (that is the vendor search process), the district has the power to request and get all of the following: low-cost options and hands-on-reps and information seminars (and yes TIAA can and does provide such services). Such an RFP process shifts the sales process away from the classrooms, staff lounges and union halls where I have witnessed it first hand to where it belongs: supervised by the employer and ideally an unbiased consultant during the RFP process. All vendors have an equal chance. An RFP is a lot like getting work done on your house or car. You request a bid and arrive at a decision based on some combination of price and service. You don't always choose the lowest-cost contractor/mechanic and you don't always choose the most full-service contractor/mechanic. The point is that during the bid process you have the most power to get what you want.

 

It sounds like you really enjoy working with your commission-based rep and that you do not mind paying more in fees. That's great. However, for every investor like you who doesn't mind paying more for the undercoating my guess would be that there are thousands who do mind. I think many would be best served with low-fee options and then when in need of advice they could turn to a fee-only financial planner.

 

I encourage you to read the following:

http://www.403bwise.com/features/rfp.html'>http://www.403bwise.com/features/rfp.html'>http://www.403bwise.com/features/rfp.html'>http://www.403bwise.com/features/rfp.html

http://www.shrm.org/hrmagazine/articles/1203/1203taylor.asp

http://www.403bwise.com/features/rfp.html

 

Dan Otter

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Jim,

 

You may also want to check out the Investment Plan of the Florida Retirement System at www.myfrs.com. Also, the Federal Thrift Savings Plan.

Also the the Deferred Compensation Plans of the City of NY at nyc.gov/deferredcomp. In fact you would be hard pressed to find a single state in this great country of ours that has not adopted a 457(b) plan. I will post the nationwide website listing of the statewide plans in a few minutes. Many states have given local governments like school districts the right to use the statewide 457(b) plan for their employees. You may want to check this out with the website of your state's 457(b) plan.

 

Peace and Hope to you Jim and by the way how am I doing with that honors class of yours. Have a good week!

 

Peace and Hope,

Joel L. Frank

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Joel,

 

I posted this under another topic and I'm still waiting for your reply:

 

"Now let me ask you some questions that I've asked repeatedly and you've ignored:

 

1. What is your background to give out so much investment advice?

2. Who do you work for?

3. How much do you have in TIAA? How much do contribute per month? Which funds do you put it in?

4. What were YOUR actual returns like during the bear market?

5. Why do you sometimes post as Redwoods & sometimes as Joel_guest?

 

It is pretty obvious that you are some sort of financial services professional. Why won't you answer my questions? I've poseted them before.

 

I'm not trying to catch you out Joel. I just wonder why you are so dogmatic in your beliefs.

 

Jim

 

It is pretty obvious that you are some sort of financial services professional. Why won't you post your background?

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