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Options For S.f.unified Teachers

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Our district seems to offer only vendors who are insurance companies. I would like to switch from NYLife and instead of having an annuity, get a 403b. Anyone out there from SFUSD who has a good plan??

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Hi,

A good vendor is either TIAA CREF, Fidelity Investments, and or Vanguard Group. No sales person will mention these companies as an option or help you with the paper work. You will have to do this yourself. Call your district office and get a list of the vendors who signed on to provide 403b services. As you already know, insurance companies are to be avoided like the plague. If my memory is correct, I recall that Fidelity was on SFUSD's list. TIAA CREF has the only good annuity, which is also non-profit, has very low expense ratios and no surrender fees (except for the traditional annuity). TIAA CREF's Western regional office is in SF. Call 1 800 842-2007 and ask them if they are signed on to your school district.

Good luck,

Steve

 

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Is it true that:

 

1) TIAA-CREF, being a "bundled" plan provider potentially makes it difficult for a fiduiary to substitute funds, i.e. get rid of underperforming funds?

 

2) provides only restricted, comparative analyses, like the information or sharpe ratio?

 

 

3) makes it very difficult for an investor to analyze his or her total portfolio because the annuity funds do not lend themselves to being analzes as readily a real mutual funds?

 

 

4) Does not offer so-called "life-style" funds like the Fidelity Freedom funds?

 

Just checking my perceptions out.

 

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I have a few questions surrounding TIAA CREFF, Vanguard or Fidelity as a school district's vendor.

1) Since TIAA CREFF, Vanguard or Fidelity apparently do not have sales people then who is responsible for communications of 403b plans?

2) Who would be responsible for educating new, and veteran, employees?

3) Would 12b-1 fees not exist as there is no marketing of their plans?

4) Would/could there be other fees regarding marketing that I have not mentioned above?

Thanks.

PAB

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I have a few questions surrounding TIAA CREFF, Vanguard or Fidelity as a school district's vendor.

1) Since TIAA CREFF, Vanguard or Fidelity apparently do not have sales people then who is responsible for communications of 403b plans?

2) Who would be responsible for educating new, and veteran, employees?

3) Would 12b-1 fees not exist as there is no marketing of their plans?

4) Would/could there be other fees regarding marketing that I have not mentioned above?

Thanks.

PAB

 

The best way to deal with all of these concerns is to make sure that both types of vendors are accessible to people in your district. People who don't need the help, and want only the lowest-cost plans available, can choose from the low-cost vendors that you mention here. People who are newer to investing or who feel like they need financial planning assistance can shop from among the full-service vendors and choose one which meets their needs. There's really no one right answer here, but a good district will be certain to provide both types of vendors to its teachers.

 

Hope this helps.

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