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Adding Vanguard Or Fidelity To Ocps (Fl) 403(B)/457(B) Plan.

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For OCPS (FL) TIAA charges a 0.58% fee for doing business with them. It looks like they offer:

  • Vanguard S&P 500 - 0.05%
  • Vanguard Extended Market - 0.09%
  • Vanguard Developed Markets - 0.09%
  • Vanguard Total Bond - 0.06%

I get the sense that there is a fondness for TIAA but I view these fees as unnecessarily high.


Given that OCPS has NEA DirectInvest in the 403(b) and PlanMember Direct in the 457(b) there isn't any reason to use TIAA.

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Ed, that's interesting that TIAA is using Vanguard index funds rather than their own index funds. I think the 0.58% additional charge makes TIAA only usable if there was nothing less expensive available.


Tony, I agree that Target Retirement funds can be a good choice for someone who doesn't want to bother with rebalancing from time to time. However in the K-12 403b world, Vanguard direct and Vanguard via Aspire are the only possible low-cost TR plans.


The Fidelity Target Retirement funds that are available in their generic 403b plan are based on managed funds not index funds and have ERs of 0.47% to 0.58%. They are called Fidelity Freedom 20XX. Their Fidelity Freedom Index 20XX funds with much lower ERs aren’t available in their generic 403b (according to 403bcompare). The Fidelity Four-in-One Index (FFNOX) ER 0.15% with an AA of 85/15 is the only Fidelity low-cost index balanced fund listed in 403bcompare.

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Their own index funds are in there but it doesn't make sense to use them. The cheapest TIAA fund is the S&P 500 for 0.3%.


...they've actually got lots of different funds. The most expensive is PSI Tactical Growth Fund Class A for 3.08% gross, 2.5% net and I think it has a 5.75% load.

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If I processed all of the information correctly it looks like the "best" vendors in the K-12 403(b)/457(b) market (at least in FL) allow you to build a diversified portfolio for about:



Fidelity: 0.06% + $24/year (can't be waived)

Security Benefit's NEA DirectInvest: 0.07% + $35/year (waived if you have $50,000)



Vanguard: 0.16% + $15/year (can be waived)

ASPire: 0.21% + $40/year (can't be waived)



PlanMember Direct: 0.41%


...if I got anything wrong please correct me.




For Vanguard, maybe add "$15/fund/year", and for ASPire, call it "ASPire Self-Directed"? If not Self-Directed, there's a 0.60% Advisor fee.

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