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Vanguard 403(B)(7)

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Just got off the phone with Aspire Headquarters. WE DO NOT need to go through their

broker/ representatives to access their accounts. The only restriction is loaded funds.I'm not much upset about that.

 

All Vanguard funds are open as are any fund that does not charge an upfront fee. I just

downloaded the application online and will fill it out tonight. Where it says

representative broker just write in SELF DIRECTED.I will save the huge broker tack on

this way and lower my cost to less than half.

 

 

Awesome!!!!

 

 

I felt just like you do now Tony when I discovered this, I'm happy for you as you will now be able to invest again in your 403b. I wrote about this in great detail several months ago, I hope others realize they have this option if they have Aspire Financial as an option. What is a real travesty is that if you go off my wife's school district's vendor list, you would have NO idea that this option even existed! I found out by accident and there are many others out there that probably don't know. All we can do is keep spreading the word. I'm happy for you, what a great way to start off the investing year....Oh and by the way, ASPIRE also offers a 457 plan. Same fees, everything is identical. All you need is the school district to give ASPIRE permission to offer the 457 plan. Once they give permission, you can sign up that as well. We are in the process of attempting to get their 457 plan on board as well so that we can max out both of them. If you can afford to max out the 403b, lobby for the 457 through ASPIRE and then max that one out as well. Good luck.

 

P.S. tried to get Fidelity as a 457 plan provider but the SD is having a problem accepting their plan documents as is, but ASPIRE will be just fine considering AXA is the only other alternative.

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I'm filling out the form is very moment. Question: Is any fund available? even institutional share? I don't see a list anywhere.

 

You really did make my year. Thanks to you and this site!!!

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I'm filling out the form is very moment. Question: Is any fund available? even institutional share? I don't see a list anywhere.

 

You really did make my year. Thanks to you and this site!!!

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I'm filling out the form is very moment. Question: Is any fund available? even institutional share? I don't see a list anywhere.

 

You really did make my year. Thanks to you and this site!!!

 

 

In order to make sure if the fund is available, you need to call ASPIRE and speak with customer service. Give them the name and the ticker symbol and they will check and let you know while on the phone. When I did it in November of 2009, Vanguard Index funds at the time were slightly higher than Fidelity's Spartan Index funds so I used Fidelity's Index funds. I called at the time and all of Fidelity's and Vanguards Index funds were available! Later on I even added Fidelity's GNMA fund. There are thousands to choose from and more than likely what your looking for will be available, but you need to confirm this with them before listing your Investment Elections. Oh, I forgot to mention at the time we did this, Fidelity required a minimum of 10K to invest in their Spartan Index Funds and that was waived! But call them tomorrow just to confirm and like I said, more than likely you will have access to those you want.

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I'm filling out the form is very moment. Question: Is any fund available? even institutional share? I don't see a list anywhere.

 

You really did make my year. Thanks to you and this site!!!

 

 

In order to make sure if the fund is available, you need to call ASPIRE and speak with customer service. Give them the name and the ticker symbol and they will check and let you know while on the phone. When I did it in November of 2009, Vanguard Index funds at the time were slightly higher than Fidelity's Spartan Index funds so I used Fidelity's Index funds. I called at the time and all of Fidelity's and Vanguards Index funds were available! Later on I even added Fidelity's GNMA fund. There are thousands to choose from and more than likely what your looking for will be available, but you need to confirm this with them before listing your Investment Elections. Oh, I forgot to mention at the time we did this, Fidelity required a minimum of 10K to invest in their Spartan Index Funds and that was waived! But call them tomorrow just to confirm and like I said, more than likely you will have access to those you want.

 

 

Forgot to mention and you know this by now, Aspire is one of the good guys. They are a sponsor on this web site and listed at the bottom of the page. This makes sense, I don't think Dan Otter would list them if he didn't feel like we did.

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Thanks again for this information. I do remember you bringing this up earlier but when it was added as a vendor it was introduced by a salesperson and HR didn't even know you could self direct. so I assumed it would be full of unnecessary fees and that there would be no way around them.

 

Please keep contributing. Its really a shame more folks are not getting involved on this site. I usually post articles just to keep things going.

 

Tony

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Thanks again for this information. I do remember you bringing this up earlier but when it was added as a vendor it was introduced by a salesperson and HR didn't even know you could self direct. so I assumed it would be full of unnecessary fees and that there would be no way around them.

 

Please keep contributing. Its really a shame more folks are not getting involved on this site. I usually post articles just to keep things going.

 

Tony

 

 

Hi guys:

 

My school district also lets me self-direct. We use First Financial http://www.ffga.com/ and I had to find the same backdoor way to self-direct to a Vanguard 403(b). Far as I can tell, all First Financial is doing is taking my payroll deduction from my employer and forwarding it directly to Vanguard with no fees taken out because the full deposits keep showing up in my Vanguard portfolio on the Vanguard web site.

 

As for the previous issue of rolling the old Vanguard into a 403(b). There are two issues that I have not seen mentioned yet.

 

First, one issue that may or may not be relevant to this decision is the backdoor Roth IRA. This is only an issue if your joint income exceeds the limit for making Roth IRA contributions. If your income is over the limit for Roth contributions there is still a backdoor way to fund a Roth and that is by opening a non-deductible traditional IRA and then rolling it over to a Roth. But this only works if you have no other IRAs, otherwise you pay tax on any capital gains. It's complicated but explained here

 

http://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html

 

If this is an issue for you then you definitely want to leave the money in a 403(b) because that will not affect your ability to do a backdoor Roth IRA. However if you are not near the Roth income limit then there's no worry.

 

The second issue has to do with Admiral shares and fees. Admiral Shares are not available within Vanguard 403(b) plans no matter what your 403(b) account balance. I guess this is Vanguard's way of capturing the 403(b) management fee. However Admiral shares are available in IRA accounts. So if you aren't anywhere near the Roth income limit and have enough in the 403(b) to benefit from the lower Admiral share fees then that would be one reason to roll the old 403(b) into an IRA.

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I haven't logged on for a while and just saw this post. I'm glad to find a way into Vanguard also. My wife has a small account lingering with them from when the school district dropped Vanguard. I had given up on a 403b but now looking at starting it back up. I'll put the paperwork through and see what her district says about the self directed account.

 

Thanks

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I sent my forms in. I do have a restricted number of funds to choose from but many of The Vanguard Index and Target funds are available so I'm good. I was in such disbelief that I called ASPIre three times to get three different reps to tell me that I could self direct.

 

I will ley uou know how it goes.

 

 

Tony

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I sent my forms in. I do have a restricted number of funds to choose from but many of The Vanguard Index and Target funds are available so I'm good. I was in such disbelief that I called ASPIre three times to get three different reps to tell me that I could self direct.

 

I will ley uou know how it goes.

 

 

Tony

 

 

Hi Tony,

 

I received good news today from my wife's school district. Although I lobbied for a 457 plan directly with Fidelity, they woulde not sign the ISA, I guess their holding even the 457 plan orovider to the same standard as the 403b. However, my second choice was ASPIRE as they do offer a 457 with similar fees like the 403b and they will be made available in a few months.

 

Because ASPIRE is already a 403b vendor, it was easier for the school district to bring them on board. If you max out your 403b, lobby your school district for a 457 with ASPIRE like I did and hopefully you will be granted a 457 with ASPIRE.

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I have a question regarding Aspire. Their enrollment form has information on fees. one paragraph says this:

 

"Transaction fees that may apply to your account: Transfer-out Fee of $75, Loan Fee of $100, Distribution Fee of $75. PLEASE NOTE: Recurring scheduled distributions are $10 per occurrence after the initial base fee of $75."

 

Does that mean when it comes time for distributions they hit you up $10 at a time? I guess the way out of that is to roll it over to an IRA.

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Page 4 of Aspires 403(b)(7) Account application. Establishing a new account.

 

http://www.403bplan.info/static/forms/enrollment/403b-enrollment-kit.pdf

 

I understand the following fees will be collected by redeeming sufficient shares from my account balance: (1) an annual account maintenance fee of $40 (2) a 0.15% custody/administration fee of the value of my account. These fees will be collected pro rata on a regular billing cycle.

 

Transaction fees that may apply to your account: Transfer-out Fee of $75, Loan Fee of $100, Distribution Fee of $75. PLEASE NOTE: Recurring scheduled distributions are $10 per occurrence after the initial base fee of $75.

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Just adding my 2 cents to the Aspire issue:

My district financial folks know very little about 403b's and want to stay very hands-off and hope everyone uses an "advisor" such as Edward Jones. But they (EJ) only have a limited set of funds, which ALWAYS cost more... You have to do your homework, or have a trusted friend who has done it, to find the funds that make sense among the 22,000+ funds that are available to the self-directed investor through Aspire. Or whatever their current name is ;)

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El Gordo

 

If I understand what you are saying correctly why not just recommend a default option like a target retirement date? In my plan our choices are limited. I do know in some Aspire accounts the field is wide open. Keep in mind that its always best to default to simplicity .

22,OOO choices may seem overwhelming but you've been on this site long enough to know that quality is more important than quantity.

 

Remember the industry profits by keeping us in the dark

 

 

My trusted friend is Vanguard.

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