Jump to content
DK

Calstrs Pension2 New Funds

Recommended Posts

Okay. I just got in the mail the list of new funds for Pension2, which will go into effect Sept 18, 2009.

 

American Funds Growth Fund of America R-6 ---> This replaces T. Rowe Price Growth Stock Fund

AF EuroPacific Growth Fund R6

AF Capital World Growth and Income Fund R6

AF SmallCAP World Fund R6

DFA International Small Company Fund

TIAA-CREF Social Choice Equity Fund

Vanguard Mid-Cap Index Fund

PIMCO All Asset Fund - Institutional

AF American Balanced Fund R6

CREF Social Choice Account

Vanguard Inflation protected Securities Fund (Institutional) ----> This replaces the Investor class fund.

 

 

I think they did a good job with these new funds. I like the AF SmallCAP World Fund, DFA International Small, Vanguard mid-cap, and PIMCO.

I wish there was an Asian Fund that invest in the Asian countries, like there is that EuroPacific Fund.

Share this post


Link to post
Share on other sites

This is great news. Reduces expense ratios by almost 2/3rds on TIPS, and add the DFA international small company fund. These are real improvements.

 

BTW, the Europacific fund DOES include Asian countries -- the Pacific part includes Japan and other countries in Asia also.

Share this post


Link to post
Share on other sites

This is great news. Reduces expense ratios by almost 2/3rds on TIPS, and add the DFA international small company fund. These are real improvements.

 

BTW, the Europacific fund DOES include Asian countries -- the Pacific part includes Japan and other countries in Asia also.

 

 

I know but it's only about 20% invested in Asia. I kind of want a fund that invest at least 50% in Asia.

Share this post


Link to post
Share on other sites

Here is the fee line up: http://www.calstrs.com/members/pension2/p2_core_funds.pdf

 

This is a dream plan for K12 school districts in California. Many thanks to Scotty, a fee only planner, a frequent poster on this board and a consultant to CalSTRS, who is also very busy with his clients. California teachers will probably never know what this one man has done for them.

 

Imagine that, when a professional looks out for their client's best interest, they have more business than they can handle.

 

I would also thank CalSTRS board for recognizing the ethical considerations of teachers best interests too.

 

This plan is an example of what can be done with low fee, no load companies.

There are 4 Vanguard funds, 2 DFAs, 2 TIAA CREF, 2 Dodge and Cox, all are under 1% fee, the rest are over 1% (too expensive).

All of the "Easy Choice" portfolios are well under 1%.

Share this post


Link to post
Share on other sites

Here is the fee line up: http://www.calstrs.com/members/pension2/p2_core_funds.pdf

 

This is a dream plan for K12 school districts in California. Many thanks to Scotty, a fee only planner, a frequent poster on this board and a consultant to CalSTRS, who is also very busy with his clients. California teachers will probably never know what this one man has done for them.

 

Imagine that, when a professional looks out for their client's best interest, they have more business than they can handle.

 

I would also thank CalSTRS board for recognizing the ethical considerations of teachers best interests too.

 

This plan is an example of what can be done with low fee, no load companies.

There are 4 Vanguard funds, 2 DFAs, 2 TIAA CREF, 2 Dodge and Cox, all are under 1% fee, the rest are over 1% (too expensive).

All of the "Easy Choice" portfolios are well under 1%.

 

 

Those fee are the old fee. Some have changed already. The new funds are not included in there yet. I would like to thank ScottyD also for getting the new funds in and helping out.

Share this post


Link to post
Share on other sites

 

 

Those fees are the old fees. Some have changed already. The new funds are not included in there yet. I would like to thank ScottyD also for getting the new funds in and helping out.

 

 

DK,

When will CalSTRS update their website?

Steve

Share this post


Link to post
Share on other sites

I don't know Steve. The letter I got in the mail stated that the fund changes are effective starting on Sept 18, 2009. In the letter, there's a section that list all the funds available, including new funds that they added. Hopefully, they will update the site to reflect what they sent home in the mail to people who have Pension2.

Share this post


Link to post
Share on other sites

I've already made a transfer into one of the new funds and re-arranged my future allocation. They don't have fact sheets in place for the new funds yet, but otherwise the site seems to be fully updated and ready to work with those funds.

 

I'll add my voice to the chorus of thanks to ScottyD for his contribution to Pension2, which is, by a wide margin, the best 403(b) option available in my district. (Alas, the credit union that runs the plans doesn't allow it as an option for 457 accounts.)

 

Now, if TIAA-CREF can be persuaded to reduce their .33% wrap fee as more funds pour into the plan, we'll really be cookin'.

Share this post


Link to post
Share on other sites

 

I'll add my voice to the chorus of thanks to ScottyD for his contribution to Pension2, which is, by a wide margin, the best 403(b) option available in my district.

 

 

Lets keep the accolates going for ScottyD . Without Scotty, California teachers would have only high cost annuities for their 403b, thanks to the new IRS regs. Scotty truly looks out for teachers best interests.

 

Here is his blog: http://teachersadvocate.blogspot.com/

 

Thanks whyme for acknowledging Scotty. He deserves this attention. He is going to be my own personal "young John Bogle". Perhaps we can award him with a "John Bogle Trophy" type award. John Bogle created the first low cost index fund. Similar to the "Vince Lombardi trophy" for each Super Bowl winner. Lombardi was the coach of the famed 1960s Green Bay Packers, considered by many at the time as the greatest team ever, winning five NFL championships and the first two Super Bowls.

 

How does Scotty fit? Easy. Scotty is the first ever financial professional that broke the infamous barrier between school district and union sponsored high cost TSAs and low cost mutual funds. Low cost funds were never available or if available were never publicized to teachers. In the decades before Scotty, no professional, district, union ever even acknowledged let alone try to break this barrier to low cost funds and no one did this to the degree that Scotty has done at a policy level involving a California Teachers pension Plan. In the future, we could create the “SCOTT DAUENHAUER Trophy” for those professionals that are fee based and use low cost choices for their clients.

 

This is huge and we have only Scotty to thank.

 

Have a great weekend,

Steve

Share this post


Link to post
Share on other sites

Wow!

 

Thank you all for the kind words (Steve, your check is in the mail!!).

 

We still have a lot of work ahead of us to get the word out, but I think we have a solid start.

 

As much as I'd like to take all the credit, CalSTRS deserves most of it. There are few systems that would take on such projects and do it with the passion they have. Specifically Ed Derman and the team at Active Financial Choices (at CalSTRS) led by Julia Durand. TIAA has been very supportive in the process as well.

 

We've got more work to do, but I think we are on the right path, we appreciate the validation and as always welcome comments on how to improve.

 

ScottyD

Share this post


Link to post
Share on other sites

No Scotty, you are not going to get out of the spotlight that easily.

But I'll take the check!

 

Sure there are other people, Ed and Julia, CalSTRS board and how about Brian Cressy, formerly of TIAA CREF and the brain child of 403bcompare. But I digress.

 

The Pension 2 is mostly yours Scotty.

Let me suggest that I think its best just to say nothing and let us recognize you as the outstanding professional, human being and the courageous advocate for advancing the thinking, against all political and policy odds, of how 403b low cost options can be provided to California teachers.

 

Talk to you soon,

Your friend,

Steve

Share this post


Link to post
Share on other sites

Is there restriction after we sell a fund? For example, if I were to sell a fund, would that fund be restricted from being purchased again for ###### amount of months?

Share this post


Link to post
Share on other sites

Just so you know, Calstrs has updated their website to include the new funds. Some of the new funds info isn't in there yet but the names of the funds are.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...