Jump to content
Sign in to follow this  

New Jersey 403(B) State-Wide Choices?

Recommended Posts

In Jan 2013, Joel L Frank posted the following in the 457b forum.

"On or about July 1, 2013 the list of participating employers [in the NJ ACTS 403b plan] will grow by about 600 when the State's school districts will be added. This is great news for the vast majority of New Jersey public educators---the public school teachers of New Jersey."
The current ACTS website indicates that this 403b program is not an option for K-12 teachers.
"Employees of county colleges, state universities and colleges, the Commission on Higher Education, the Department of Education, and the Office of Student Assistance are eligible to participate in the ACTS Program."
What's the story here? The TIAA/CREF option would have been a big improvement over the usual expensive insurance 403b providers available to NJ teachers wouldn’t it?
The one NJ state 403b program that seems to be open to K-12 teachers is the SACT. On a Bogglehead thread, NJ teacher mikew041 asked for help finding a 403b that was worth using: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=179734
I compared the SACT annual performance using their unit values with the performance of Vanguard’s Life Strategy Moderate Growth (60/40).
2012——— 8.27%—— 11.76%
2011——— 1.71——— 0.26
2010——— 13.01—— 13.31
2009——— 14.86—— 20.33
2008***** -34.13*** -26.50
2007——— 0.33—— 7.36
2006——— 11.85—— 13.31
2005——— 4.35—— 5.69
2004——— 8.21—— 10.57
2003——— 23.56—— 22.40
2002******** -27.47** -10.32
2001******** -12.04** -4.48
In 10 out of 12 years, SACT significantly underperformed LSMG. I couldn’t find any discussion of SACT’s expenses but I’m guessing there’s an expense drag of more than 1%. Not a very impressive showing of the NJ Dept. of Treasury, is it?

Share this post

Link to post
Share on other sites

Hi Krow36,

"Not a very impressive showing of the NJ Dept. of Treasury, is it?"


I agree with your analysis, and I am not defending SACT because I know nothing about it, but compared to a typical 403b TSA annuity sold to millions of public school educators throughout the country would make SACT an improvement (of course we have to know the costs).

Sure, we all want Vanguard, but it's not available for most public k-12 educators.



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.

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.

Sign in to follow this  

  • Create New...