Jump to content
Guest Joel L Frank

Bleeding In New Jersey Will Soon Stop

Recommended Posts

"If you like the idea of no-cost investing for your retirement but demand a diversified investment menu then you must attend the December 2nd meeting. Bring your friends and colleagues. Reserve your seat by calling: 732-536-9472."

 

Joel

The idea of no-cost investing really does sound great but I am not sold on the SACT. I would much prefer low cost providers such as Vanguard be allowed in. As far as the SACT goes "who" is actually managing your money and how often. Go to the website and try and find out. Then call. Does anybody answer? Now try the same with Vanguard or any of the low cost providers. I feel that with the SACT one year there may be a great team of financial people managing my money and then the political situation changes and some secretary takes a few minutes out of her busy schedule to look at it for the next 4 years. How can I tell when no one is home and the last newsletter they put out was over a year and a half ago.

I know a few posts back someone commented about the SACT poor performance for 2011 to 2012. Who was in charge? Did they publish any articles about the strategy that led to this performance?

My wife's 403B was invested with AXA for a 12 year period. We are no fans of AXA and their commissions but viewed them as the lesser evil at the time. When my wife retired we quickly rolled over to a Vanguard IRA. Now when I look back at that 12 year period I realize my high commissioned AXA actually beat the SACT. Just saying the SACT isn't the answer to everything.

Lucky for me 10 years ago my district did have Vanguard as one of the vendors. My wife and I are now done with our 403B contributions but my son is just starting out so I still keep in touch with forums like 403B wise. Currently his district only has the high cost vendors so for now he is just using a Roth with Vanguard for his retirement savings.

Sorry I don't mean to sound like a Vanguard fan boy here. You can substitute any of the reputable low cost providers in place of their name. It's just that I have some experience with them.

Share this post


Link to post
Share on other sites

Joel-

 

I will see you at the meeting on Tuesday Dec 3. Hoping to see some other NJ teachers there. OK I'm getting inspired:

 

Never doubt that a small group of thoughtful committed citizens can change the world; indeed, it's the only thing that ever has.

-Margaret Meade

Share this post


Link to post
Share on other sites
Guest Joel L Frank

Mike,

"If you like the idea of no-cost investing for your retirement but demand a diversified investment menu then you must attend the December 3rd meeting. Bring your friends and colleagues. Reserve your seat by calling: 732-536-9472."

 

Joel

The idea of no-cost investing really does sound great but I am not sold on the SACT. I would much prefer low cost providers such as Vanguard be allowed in. As far as the SACT goes "who" is actually managing your money and how often. Go to the website and try and find out. Then call. Does anybody answer? Now try the same with Vanguard or any of the low cost providers. I feel that with the SACT one year there may be a great team of financial people managing my money and then the political situation changes and some secretary takes a few minutes out of her busy schedule to look at it for the next 4 years. How can I tell when no one is home and the last newsletter they put out was over a year and a half ago.

I know a few posts back someone commented about the SACT poor performance for 2011 to 2012. Who was in charge? Did they publish any articles about the strategy that led to this performance?

My wife's 403B was invested with AXA for a 12 year period. We are no fans of AXA and their commissions but viewed them as the lesser evil at the time. When my wife retired we quickly rolled over to a Vanguard IRA. Now when I look back at that 12 year period I realize my high commissioned AXA actually beat the SACT. Just saying the SACT isn't the answer to everything.

Lucky for me 10 years ago my district did have Vanguard as one of the vendors. My wife and I are now done with our 403B contributions but my son is just starting out so I still keep in touch with forums like 403B wise. Currently his district only has the high cost vendors so for now he is just using a Roth with Vanguard for his retirement savings.

Sorry I don't mean to sound like a Vanguard fan boy here. You can substitute any of the reputable low cost providers in place of their name. It's just that I have some experience with them.

 

Hi Mike;

 

All of us are not sold on SACT---in it present state. This is the very reason for the establishment of a Committee---to change the fundamental operation/investment policy of the SACT.

 

After 50 years, the State has decided it no longer wants to manage the SACT-Tax Sheltered Plan and has set in motion the transition of the SACT Tax-Sheltered Plan into the ACTS Tax-Sheltered Program. The only reason, and a fragile one for sure, that makes this transition great news for the k-12 community is the fact that T/C is on the ACTS Tax-Sheltered Program investment provider menu. Except for T/C the ACTS Program is infested with 403(b) sharks.

 

Having said that, the reason for the "Committee" is to make the SACT Regular Plan (the after-tax plan) much more appealing than it has been over the last 50 years. Remember, the SACT Regular after-tax plan is not affected, at all, by the SACT Tax-Sheltered Plan being transitioned into the ACTS. The SACT Regular after tax plan will remain in full force and affect. The SACT Regular after tax plan is available to all active members of the five State-administered Defined Benefit pension plans.

 

The SACT Regular after-tax plan is a section 401(a) Defined Contribution Plan. The maximum contribution for 2014 is $52,000. This is much more than one can contribute to a Roth IRA or a Roth 403(b) or a Roth 457(b). Upon retirement the after-tax portion (contributions made) of the SACT Regular Plan account is eligible for rollover to a Roth IRA while the gains portion of the account is eligible for rollover to a Traditional IRA. I don't want this great retirement planning tool to be eliminated but I am afraid it will be lest the public-sector labor movement in this State demands a fundamental change to the set-it-and-forget-it-one-size-fits-all-investment-policy of the Board of Trustees of the SACT.

 

Mike, this Committee meeting, in my view, should be attended by the younger and older generations. Why not attend with your son?

 

Best,

 

Joel

Share this post


Link to post
Share on other sites

I am attending the meeting with the hope that we can speed up the transition of the tax sheltered part of SACT program to ACTS so teachers have opportunity to invest in TIAA-Creff. Personally, the post tax part of SACT would not work for me but I would be happy to support it to help those that are in that situation.

 

I was part of a group of teachers that tried to keep Vanguard in our school district and we were unsuccessful. The school board's lawyer and the business administrator blocked us.

 

I am so angry that such poor choices are offered to me and other teachers. I am tired of being angry and not being able to do anything about it. I'm really hoping that we can make a difference.

Share this post


Link to post
Share on other sites
Guest Joel L Frank

Ok Joel, I'll bite. I sent an email name on the 403b section of the NJEA website last week- PLomonico@NJEA.org Any other ideas?

 

NJteach,

 

Has Mr. Lomonico replied to your email?

 

Joel

Share this post


Link to post
Share on other sites

hi Joel-He answered it but really could not give me any information. His director was going to try and find out more information and I should contact him (Phil) every 1 or 2 months to remind him of the question-when SACT I switching to ACTS.

Share this post


Link to post
Share on other sites
Guest Joel L Frank

hi Joel-He answered it but really could not give me any information. His director was going to try and find out more information and I should contact him (Phil) every 1 or 2 months to remind him of the question-when SACT I switching to ACTS.

 

Dear Phil Lomonico,

 

Why should you need a personal reminder every 1-2 months to find out about when the SACT Tax-Sheltered Plan will be transitioned into the ACTS Program? Why do you trivialize the retirement savings needs of teachers? Your arrogance is noted.

Share this post


Link to post
Share on other sites
Guest adirondacks

Boy-oh-boy---- time does fly when you follow (or at least try to follow) this stuff. Yesterday, August 1, 2014, Governor Chris Christie established a Study Commission to report back to him in 30 days. Rumor has it that a "hybrid" plan as the mandatory retirement benefit is being looked into. That said, the k-12 403(b) issue should be a part of any overall "solution".

 

Respectfully,

 

Joel

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...