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403b Asp - Open Fund Platform - Is This A Good Idea?

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James,

 

I'm not trying to be rude but you really should proofread your posts before you submit them. I'm not getting a very good impression of your company based on the many mistakes I'm reading in your posts.

 

JLP

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I have reading the posts about 403basp and from what previous posters stated, Vanguard funds are available. I contacted the rep. that services the school district where my wife works, who by the way is affialiated with Edward Jones, and he told me that Vanguard and Fidelity are NOT available and the all the funds available are loaded funds but the load is waived. He told me the fees are .15% annually of the account balance, a 40.00 per year accnt fee and the underlying mututal fund expanse fees.....

 

Im confused, does 403basp offer Vanguard funds?? I will call the company tomorrow, they are closed now, but does anybody have a definative answer or does it vary from state to state district to district. Her TPA is CPI if that matters.

 

Thanks

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403basp is available in my local school district (Albuquerque Public Schools). Vanguard funds can be purchased directly. Cost is Vanguard's price + a nominal fee (I believe it is 0.15). BTW: We wouldn't accept sponsorship from 403basp (currently on home page and in Participant section) if we didn't think they offered quality products at a quality price.

 

Dan Otter

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403basp is available in my local school district (Albuquerque Public Schools). Vanguard funds can be purchased directly. Cost is Vanguard's price + a nominal fee (I believe it is 0.15). BTW: We wouldn't accept sponsorship from 403basp (currently on home page and in Participant section) if we didn't think they offered quality products at a quality price.

 

Dan Otter

 

 

Thanks Dan, I will be calling them directly tomorrow to see if Vanguard is available as they, 403basp, are the only viable option at this point in time.

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Here's info James provided (custodial fee listed below is 0.10 instead of 0.15):

 

403basp Information

 

Fees:

Annual account fee of $40 per year (will apply $20 of this amount to offset any TPA/Common Remitter fees).

 

Annual custodial fee of 10 basis points (bps). Ten bps equals 1 cent for every dollar. This may be expressed as 0.10% or .10% — to get the correct figure enter 0.0010% on a calculator.

 

For example for participant owning the following accounts:

 

$5,000 Vanguard Growth & Income - VQNPX

$5,000 Vanguard Dividend Appreciation - VDAIX

----------------------------------

$10,000 Total account value

----------------------------------

$10.00 Custodial Fee -- 10 bps (0.0010%)

$40.00 Account Fee

----------------------------------

$50.00 Total 403b ASP Fee

 

TOTAL COST: $50 + Vanguard’s expense ratio

Note: there is no additional account fee applied by Vanguard

 

Working with and advisor

403basp is an open, free-agent platform that allows a participant to appoint a financial advisor to their account regardless of the firm they work with. 403basp charges nothing for this service. The advisors compensation can be a RIA fee (agreed to by the participant and the advisor) or they can be compensated by 12b1 fees paid by the fund companies, which are built-in to the fund expense ratio.

---

 

Hope this helps.

 

Dan Otter

 

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Yes, Vanguard is available.

 

We have various financial advisors who use our platform to work with participants -- many of these advisors have restrictions from their home office as to which funds they may use. This is not an ASP restriction, it is a restriction with that financial advisor.

 

You may self direct your account and have access to Vanguard funds.

 

James Olson

 

 

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This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

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Yes, Vanguard is available.

 

We have various financial advisors who use our platform to work with participants -- many of these advisors have restrictions from their home office as to which funds they may use. This is not an ASP restriction, it is a restriction with that financial advisor.

 

You may self direct your account and have access to Vanguard funds.

 

James Olson

 

 

James thanks for the response. I called 403b ASP before I read your post and to my delight Vanguard and Fidelity Funds are available. I can't help but be somewhat skeptical because what I am reading and being told almost seems to good to be true, however, it is very comforting and assuring when Dan Otter gives his stamp of approval, and I believe even Scotty has approved of 403(b) ASP.

 

The phone reps at 403b ASP confirmed everything I have read on this board and I submitted our enrollment form so that we can begin to invest once again with quality companies such as Vanguard and Fidelity that allow us to keep more of our investment dollars and not less of them, like most of the annuity peddling vendors out there.

 

James perhaps you could help answer a question the phone rep at 403b ASP could not with any degree of certainty. I would like to use the Fidelity Spartan Index Funds because they are cheaper than the Vanguard Index funds, at least initially they are until you can qualify for Vanguard Admiral shares. I'd like to know if Fidelity will waive the 10,000.00 minimum since this is a retirement account?

 

The rep told me that they can submit the purchase to Fidelity and if they kick it back, the money will be placed in a money market fund until I elect another mutual fund, and my next choice would be a Vanguard Index Fund.

 

Had it not for been this web site's message board, specifically the post by James Olsen in which he stated a person can invest through 403(b) ASP without an advisor, I would have never realized this for the following reason.

 

On my wife's vendor list, they have a representative from Edward Jones and ING listed as contact persons next to 403(b) ASP. In my opinion, this is very misleading. It is as misleading as the pay stubs that have TSA in instead of 403(b). I was clearly under the impression that I had to go through these reps, so I called the Edward Jones Rep. and he told me that he could not offer me any Vanguard or Fidelity funds and rattled off the fund families he had access to, which were the usual suspects with loads. He told me that the loads were all waived and the only expenses I would incurr would be a 40.00 annual fee, 15 basis point annual account total fee and the underlying fund expense fee.

 

This so far was a better option than all of the other vendors because the rest offered either loaded funds, they would not waive the loads, I asked, or annuity products with dizzying fees.

 

The school districts need to do a much better job in disclosing that a vendor such as 403(b) ASP allows participants to invest with Vanguard or Fidelity without using a salesman/broker, not doing so is very misleading to say the least.

 

I realize that the broker I was speaking with wasn't about to cut his own throat and advise me of what www.403bwise.com has taught me and for that I am grateful to Dan Otter, James and the other posters who helped bring this fact to life. Thanks!!

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"It is as misleading as the pay stubs that have TSA in instead of 403(b)."

 

ft6

At LAUSD, we corrected this problem several years ago. With the union's help (yes! sometimes they can help), the assistant to the president of UTLA wrote a letter to the benefits department explaining that TSA's on the paystub means that the district is "endorsing" TSAs from insurance companies. It could be percieved by the employees that LAUSD is endorsing only TSAs. LAUSD had custodial accounts with mutual fund companies available too. We suggested that 403b replace TSA because 403b is the technical description of both TSAs and cusdodial accounts.

That simple word "endorsing" did the trick and they responded immediately.

It now reads TSA/403b.

 

Perhaps you have already tried and if you did and nothing happened, try again.

If you don't have a union, write a letter to the board, CFO and cc to the benefits department. Explain the LAUSD has done this years ago.

Steve

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Steve, I work with James, so I hope you won't mind me answering for him. The answer is that 403b ASP has access to over 22,000 funds, regardless of advisor restrictions. Advisors are linked to an account at the discretion of the participant (unless the employer has further restrictions regarding who may act in that capacity.)What this means is that if a participant wants to self-direct using any of these funds, we can accommodate that, or if they want to name an advisor on their account, they can do that as well. If they find an advisor who is willing to offer Vanguard, Fidelity, or any other load-free funds, we can accommodate that as well. Often, when using no-load funds, advisors will act in the capacity of a Registered Investment Advisor (RIA), charging an advisory fee, instead of collecting commissions as an Registered Rep (RR).

 

I can't speak to what the advisors suggest, but we, as record keeper, certainly make these options available.

 

Daryle

 

 

 

This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

 

 

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Daryle,

My responses are in red.

Steve

 

 

Steve, I work with James, so I hope you won't mind me answering for him. The answer is that 403b ASP has access to over 22,000 funds, regardless of advisor restrictions.

OK, I get it. VG, Fidelity and other no loads are availble for 15 bps and $40 per account per year. Is this correct? You will have to pardon me, but the world has been lecturing to us for a long long time that you cannot do this for such a low price. How does you company make money?

 

My concerns are in the red:

 

Advisors are linked to an account at the discretion of the participant (unless the employer has further restrictions regarding who may act in that capacity.)

What this means is that if a participant wants to self-direct using any of these funds, we can accommodate that, or if they want to name an advisor on their account, they can do that as well.

If they find an advisor who is willing to offer Vanguard, Fidelity, or any other load-free funds, we can accommodate that as well.

Often, when using no-load funds, advisors will act in the capacity of a Registered Investment Advisor (RIA), charging an advisory fee, instead of collecting commissions as an Registered Rep (RR).

 

 

For those that know something about 403bs, you can accommodate. I am happy with those teachers that know what’s going on and get the right adviser and ask the right questions. Those are significant obstacles even for knowledgeable employees. But for the sack of argument, lets assume all savvy teachers get VG and those low fees.

What happens to all of the rest, who don't have an adviser and they do not know how to self direct. What troubles me is this situation is not much different that the old days under the old system. 20 years ago, I did not know that there were no loads available from my district until I researched it myself. Very few teachers knew, until some nut, began written articles in the union newspaper telling members that they were available. Oh, yea that "nut" was me, because no official, no financial adviser, no district staff was letting teachers know what all the options were. I am concerned that this may happen again.

The IRS requires just one notice a year to be publicised to participants and just exactly how will the district handle this...thats a huge question. Consequently, I wonder how many knowlegable teachers do not know or will not know that the low fee companies are available under your plan?

 

Will the rest of the teachers who do not know whats going on pay higher expense ratios than the teachers who self direct?

 

Daryle

 

 

 

This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

Daryle,

OK, I get it. VG, Fidelity and other no-loads are available at 15 bps and 40.00 per year per account. But the caveat is that the particpant must ask

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

 

 

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Steve,

 

I will try to address some of your concerns.

 

1. Yes, our account maintenance fee is $40 and our custodial/admin fee is 0.15% or 15 basis points annually. In fact, in many cases, up to $20 of our account fee goes toward offsetting TPA fees, so our average net is much close to $20 per year. Other fees that may affect the participant, but do not relate to 403b ASP are TPA expenses above $20/yr, mutual fund sales charges and internal expenses. This is why we have no problem offering no-load funds with low expenses.

 

2. How does our company make money? Well, as an independently-owned recordkeeping firm, we've worked hard to keep expenses low, as work every day to improve efficiency. As our CEO said, we don't give out frisbees, extravagent dinners, or all-expense trips for prospects. We don't have advisors, so our marketing is limited to mainly informational pieces about our services. One way we have kept 403(b) fees low is that we provide access to all our forms in pdf format on our site, rather than printing (and charging for) enrollment kits the advisor or sponsor may or may not use. Our fee structure is certainly a point of pride for us.

 

3. Like you say, most investors, especially in the 403(b) market are not sophisticated investors, so we, on the whole, recommend they find an advisor to assist them. Unfortunately, you are correct in that there are certainly advisors who choose to offer loaded shares in these accounts. However, we have experienced a trend for advisors and their B/D firms to choose no-load funds with reasonable 12b1 commissions. The FundSource Select list, a sample fund list available on our site is comprised of roughly 40 funds, all no-load with a 12b1 of 50 basis points. This has been very popular, and while we make no recommendations regarding investments, it certainly is an option.

 

4. You are correct again when you say there is a dearth of information regarding sales charges, expense ratios, etc for the average 403(b) investor. The more educated regarding these fees the participant becomes, the more success we experience. Thus far, we have depended on those advisors that are ethical, and are working for the benefit of the client. Also, employers are getting more educated, and some have even told us to restrict their plans to no-load funds. We also appreciate the efforts of watchdogs, like yourself, who act as advocates for the participant through your articles in newspapers and other media.

 

I guess the summary of this is that like in every market, from suits to cars to retirement plans, an educated consumer will be best served. Hopefully, as the market grows, due to IRC changes, people will be exposed to more information, and thanks to people like yourself, they will be able to make more educated decisions.

 

Daryle

 

 

 

 

Daryle,

My responses are in red.

Steve

 

 

Steve, I work with James, so I hope you won't mind me answering for him. The answer is that 403b ASP has access to over 22,000 funds, regardless of advisor restrictions.

OK, I get it. VG, Fidelity and other no loads are availble for 15 bps and $40 per account per year. Is this correct? You will have to pardon me, but the world has been lecturing to us for a long long time that you cannot do this for such a low price. How does you company make money?

 

My concerns are in the red:

 

Advisors are linked to an account at the discretion of the participant (unless the employer has further restrictions regarding who may act in that capacity.)

What this means is that if a participant wants to self-direct using any of these funds, we can accommodate that, or if they want to name an advisor on their account, they can do that as well.

If they find an advisor who is willing to offer Vanguard, Fidelity, or any other load-free funds, we can accommodate that as well.

Often, when using no-load funds, advisors will act in the capacity of a Registered Investment Advisor (RIA), charging an advisory fee, instead of collecting commissions as an Registered Rep (RR).

 

 

For those that know something about 403bs, you can accommodate. I am happy with those teachers that know what’s going on and get the right adviser and ask the right questions. Those are significant obstacles even for knowledgeable employees. But for the sack of argument, lets assume all savvy teachers get VG and those low fees.

What happens to all of the rest, who don't have an adviser and they do not know how to self direct. What troubles me is this situation is not much different that the old days under the old system. 20 years ago, I did not know that there were no loads available from my district until I researched it myself. Very few teachers knew, until some nut, began written articles in the union newspaper telling members that they were available. Oh, yea that "nut" was me, because no official, no financial adviser, no district staff was letting teachers know what all the options were. I am concerned that this may happen again.

The IRS requires just one notice a year to be publicised to participants and just exactly how will the district handle this...thats a huge question. Consequently, I wonder how many knowlegable teachers do not know or will not know that the low fee companies are available under your plan?

 

Will the rest of the teachers who do not know whats going on pay higher expense ratios than the teachers who self direct?

 

Daryle

 

 

 

This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

Daryle,

OK, I get it. VG, Fidelity and other no-loads are available at 15 bps and 40.00 per year per account. But the caveat is that the particpant must ask

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

 

 

 

 

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Steve,

 

I will try to address some of your concerns.

 

1. Yes, our account maintenance fee is $40 and our custodial/admin fee is 0.15% or 15 basis points annually. In fact, in many cases, up to $20 of our account fee goes toward offsetting TPA fees, so our average net is much close to $20 per year. Other fees that may affect the participant, but do not relate to 403b ASP are TPA expenses above $20/yr, mutual fund sales charges and internal expenses. This is why we have no problem offering no-load funds with low expenses.

 

2. How does our company make money? Well, as an independently-owned recordkeeping firm, we've worked hard to keep expenses low, as work every day to improve efficiency. As our CEO said, we don't give out frisbees, extravagent dinners, or all-expense trips for prospects. We don't have advisors, so our marketing is limited to mainly informational pieces about our services. One way we have kept 403(b) fees low is that we provide access to all our forms in pdf format on our site, rather than printing (and charging for) enrollment kits the advisor or sponsor may or may not use. Our fee structure is certainly a point of pride for us.

 

3. Like you say, most investors, especially in the 403(b) market are not sophisticated investors, so we, on the whole, recommend they find an advisor to assist them. Unfortunately, you are correct in that there are certainly advisors who choose to offer loaded shares in these accounts. However, we have experienced a trend for advisors and their B/D firms to choose no-load funds with reasonable 12b1 commissions. The FundSource Select list, a sample fund list available on our site is comprised of roughly 40 funds, all no-load with a 12b1 of 50 basis points. This has been very popular, and while we make no recommendations regarding investments, it certainly is an option.

 

4. You are correct again when you say there is a dearth of information regarding sales charges, expense ratios, etc for the average 403(b) investor. The more educated regarding these fees the participant becomes, the more success we experience. Thus far, we have depended on those advisors that are ethical, and are working for the benefit of the client. Also, employers are getting more educated, and some have even told us to restrict their plans to no-load funds. We also appreciate the efforts of watchdogs, like yourself, who act as advocates for the participant through your articles in newspapers and other media.

 

I guess the summary of this is that like in every market, from suits to cars to retirement plans, an educated consumer will be best served. Hopefully, as the market grows, due to IRC changes, people will be exposed to more information, and thanks to people like yourself, they will be able to make more educated decisions.

 

Daryle

 

 

 

 

Daryle,

My responses are in red.

Steve

 

 

Steve, I work with James, so I hope you won't mind me answering for him. The answer is that 403b ASP has access to over 22,000 funds, regardless of advisor restrictions.

OK, I get it. VG, Fidelity and other no loads are availble for 15 bps and $40 per account per year. Is this correct? You will have to pardon me, but the world has been lecturing to us for a long long time that you cannot do this for such a low price. How does you company make money?

 

My concerns are in the red:

 

Advisors are linked to an account at the discretion of the participant (unless the employer has further restrictions regarding who may act in that capacity.)

What this means is that if a participant wants to self-direct using any of these funds, we can accommodate that, or if they want to name an advisor on their account, they can do that as well.

If they find an advisor who is willing to offer Vanguard, Fidelity, or any other load-free funds, we can accommodate that as well.

Often, when using no-load funds, advisors will act in the capacity of a Registered Investment Advisor (RIA), charging an advisory fee, instead of collecting commissions as an Registered Rep (RR).

 

 

For those that know something about 403bs, you can accommodate. I am happy with those teachers that know what’s going on and get the right adviser and ask the right questions. Those are significant obstacles even for knowledgeable employees. But for the sack of argument, lets assume all savvy teachers get VG and those low fees.

What happens to all of the rest, who don't have an adviser and they do not know how to self direct. What troubles me is this situation is not much different that the old days under the old system. 20 years ago, I did not know that there were no loads available from my district until I researched it myself. Very few teachers knew, until some nut, began written articles in the union newspaper telling members that they were available. Oh, yea that "nut" was me, because no official, no financial adviser, no district staff was letting teachers know what all the options were. I am concerned that this may happen again.

The IRS requires just one notice a year to be publicised to participants and just exactly how will the district handle this...thats a huge question. Consequently, I wonder how many knowlegable teachers do not know or will not know that the low fee companies are available under your plan?

 

Will the rest of the teachers who do not know whats going on pay higher expense ratios than the teachers who self direct?

 

Daryle

 

 

 

This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

Daryle,

OK, I get it. VG, Fidelity and other no-loads are available at 15 bps and 40.00 per year per account. But the caveat is that the particpant must ask

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

 

 

 

 

 

Daryle thanks for taking the time to respond. I would like to suggest to add Index Funds to your list of 40 funds and a variety of Vanguard, Fidelity, T Rowe Price or other funds from No Load Fund Families. It would be nice to see all of Vanguards Index funds along with Fidelity's Spartan Funds. These are quality funds that should be at the core of an investors portfolio. In addition, 403b ASP should suggest to the school districts that in addition to having the names of brokers from Edward Jones or ING next to 403b ASP, they ought to also add a "SELF DIRECT" option so that teachers can be made aware that they need not use a broker and avoid the additional costs of the 12B-1 fees. Let me reiterate the fact that no Index funds are on the list of 40, not good in my opinion because of the advantages they have over active funds. I hope 403bASP will take some of these points into consideration for the benefit of the teachers.

 

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Steve,

 

I will try to address some of your concerns.

 

1. Yes, our account maintenance fee is $40 and our custodial/admin fee is 0.15% or 15 basis points annually. In fact, in many cases, up to $20 of our account fee goes toward offsetting TPA fees, so our average net is much close to $20 per year. Other fees that may affect the participant, but do not relate to 403b ASP are TPA expenses above $20/yr, mutual fund sales charges and internal expenses. This is why we have no problem offering no-load funds with low expenses.

 

2. How does our company make money? Well, as an independently-owned recordkeeping firm, we've worked hard to keep expenses low, as work every day to improve efficiency. As our CEO said, we don't give out frisbees, extravagent dinners, or all-expense trips for prospects. We don't have advisors, so our marketing is limited to mainly informational pieces about our services. One way we have kept 403(b) fees low is that we provide access to all our forms in pdf format on our site, rather than printing (and charging for) enrollment kits the advisor or sponsor may or may not use. Our fee structure is certainly a point of pride for us.

 

3. Like you say, most investors, especially in the 403(b) market are not sophisticated investors, so we, on the whole, recommend they find an advisor to assist them. Unfortunately, you are correct in that there are certainly advisors who choose to offer loaded shares in these accounts. However, we have experienced a trend for advisors and their B/D firms to choose no-load funds with reasonable 12b1 commissions. The FundSource Select list, a sample fund list available on our site is comprised of roughly 40 funds, all no-load with a 12b1 of 50 basis points. This has been very popular, and while we make no recommendations regarding investments, it certainly is an option.

 

4. You are correct again when you say there is a dearth of information regarding sales charges, expense ratios, etc for the average 403(b) investor. The more educated regarding these fees the participant becomes, the more success we experience. Thus far, we have depended on those advisors that are ethical, and are working for the benefit of the client. Also, employers are getting more educated, and some have even told us to restrict their plans to no-load funds. We also appreciate the efforts of watchdogs, like yourself, who act as advocates for the participant through your articles in newspapers and other media.

 

I guess the summary of this is that like in every market, from suits to cars to retirement plans, an educated consumer will be best served. Hopefully, as the market grows, due to IRC changes, people will be exposed to more information, and thanks to people like yourself, they will be able to make more educated decisions.

 

Daryle

 

 

 

 

Daryle,

My responses are in red.

Steve

 

 

Steve, I work with James, so I hope you won't mind me answering for him. The answer is that 403b ASP has access to over 22,000 funds, regardless of advisor restrictions.

OK, I get it. VG, Fidelity and other no loads are availble for 15 bps and $40 per account per year. Is this correct? You will have to pardon me, but the world has been lecturing to us for a long long time that you cannot do this for such a low price. How does you company make money?

 

My concerns are in the red:

 

Advisors are linked to an account at the discretion of the participant (unless the employer has further restrictions regarding who may act in that capacity.)

What this means is that if a participant wants to self-direct using any of these funds, we can accommodate that, or if they want to name an advisor on their account, they can do that as well.

If they find an advisor who is willing to offer Vanguard, Fidelity, or any other load-free funds, we can accommodate that as well.

Often, when using no-load funds, advisors will act in the capacity of a Registered Investment Advisor (RIA), charging an advisory fee, instead of collecting commissions as an Registered Rep (RR).

 

 

For those that know something about 403bs, you can accommodate. I am happy with those teachers that know what’s going on and get the right adviser and ask the right questions. Those are significant obstacles even for knowledgeable employees. But for the sack of argument, lets assume all savvy teachers get VG and those low fees.

What happens to all of the rest, who don't have an adviser and they do not know how to self direct. What troubles me is this situation is not much different that the old days under the old system. 20 years ago, I did not know that there were no loads available from my district until I researched it myself. Very few teachers knew, until some nut, began written articles in the union newspaper telling members that they were available. Oh, yea that "nut" was me, because no official, no financial adviser, no district staff was letting teachers know what all the options were. I am concerned that this may happen again.

The IRS requires just one notice a year to be publicised to participants and just exactly how will the district handle this...thats a huge question. Consequently, I wonder how many knowlegable teachers do not know or will not know that the low fee companies are available under your plan?

 

Will the rest of the teachers who do not know whats going on pay higher expense ratios than the teachers who self direct?

 

Daryle

 

 

 

This is not an ASP restriction, it is a restriction with that financial advisor.

James Olson

 

 

Daryle,

OK, I get it. VG, Fidelity and other no-loads are available at 15 bps and 40.00 per year per account. But the caveat is that the particpant must ask

 

James,

Is Vanguard is only available to those that self direct? Or to advisers who are not restricted by their home offices?

If a person does not know anything about investing, what do the advisers suggest?

 

 

 

 

 

Daryle thanks for taking the time to respond. I would like to suggest to add Index Funds to your list of 40 funds and a variety of Vanguard, Fidelity, T Rowe Price or other funds from No Load Fund Families. It would be nice to see all of Vanguards Index funds along with Fidelity's Spartan Funds. These are quality funds that should be at the core of an investors portfolio. In addition, 403b ASP should suggest to the school districts that in addition to having the names of brokers from Edward Jones or ING next to 403b ASP, they ought to also add a "SELF DIRECT" option so that teachers can be made aware that they need not use a broker and avoid the additional costs of the 12B-1 fees. Let me reiterate the fact that no Index funds are on the list of 40, not good in my opinion because of the advantages they have over active funds. I hope 403bASP will take some of these points into consideration for the benefit of the teachers.

 

 

Daryle,

I also thank you for your response and it looks reasonable when you said: "This is why we have no problem offering no-load funds with low expenses." I was assuming that many VG index funds were available to those educators who were wanted them. When I reread you response there was not mention of VG, Fidelity, TR Price and TIAA CREF. You obviously know we not only adore those companies but we worship them on this site. Apparently its no problem offering no load funds with low expenses and yet now, ft6 says that they are not available.

Sorry but my head is spinning! But don't worry, the 403b system affects me that way.

Nevertheless, can you clarify.

Steve

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