Jump to content
Sign in to follow this  
EdLaFave

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

Recommended Posts

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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:

 

Great

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

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

 

Good

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

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

 

Mediocre

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.

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...
Sign in to follow this  

×
×
  • Create New...