Jump to content
Shannon

District 457 Approval

Recommended Posts

4 hours ago, EdLaFave said:

If you eventually enroll in the Fidelity 457b, please come back and tell us whether or not you have full internet access.

Our Third Party Administrator is TSA Consulting Group and when I was working to add Fidelity and Vanguard to our vendor list, one of their VPs (on a conference call with the folks at district) had an excessive amount of negative stuff to stay about the low cost vendors. I haven't looked at the financial arrangements but I believe the TPA must benefit from the high cost vendors and therefore they do what they can to discourage districts from adding Vanguard/Fidelity and they discourage employees from enrolling in the plans if they're available.

So it wouldn't surprise me if this is all nonsense in an effort to nudge you away from Fidelity. Or maybe they're right. Or maybe it is pure ignorance. I'd like to find out.

 

I'm sure you're right that the TPAs do benefit from the high cost vendors and intentionally steer employees away from the low cost choices.  I have experienced this myself firsthand.

 

Share this post


Link to post
Share on other sites

I was told that information by my third party rep. We have Tax Deferred Solutions. I told him that I would like to move forward with the Fidelity 457, so I will definitely keep you posted after I enroll. He says there will be a wait, so it may take some time.

~Shannon 

Share this post


Link to post
Share on other sites
8 hours ago, EdLaFave said:

What was your experience?

 

About 3 or 4 years ago our district started working with a Third Party Administrator to handle our 403B's.  About that time they came to our district to put on a presentation about the benefits of tax deferral and why most people should be saving more, etc.  This same year I just happened to notice that vanguard and fidelity were added to our approved vendors list.  However during the TPA's power-point presentation they only listed the 10 or 12 insurance companies that have been offered forever as approved 403B vendors.  At the end, during Q and A time, I asked about this.

Me:  "I noticed Vanguard is on our approved vendors list, but you did not include them in your presentation. So, is Vanguard an option for us?"

TPA:  After an awkward pause, as if she was carefully choosing her words, she coldly replied..... "They're on the list".        (and then crickets chirping)

 I went home and began the process of moving to Vanguard, whom I already had other accounts with.

Share this post


Link to post
Share on other sites
3 hours ago, MNGopher said:

 

About 3 or 4 years ago our district started working with a Third Party Administrator to handle our 403B's.  About that time they came to our district to put on a presentation about the benefits of tax deferral and why most people should be saving more, etc.  This same year I just happened to notice that vanguard and fidelity were added to our approved vendors list.  However during the TPA's power-point presentation they only listed the 10 or 12 insurance companies that have been offered forever as approved 403B vendors.  At the end, during Q and A time, I asked about this.

Me:  "I noticed Vanguard is on our approved vendors list, but you did not include them in your presentation. So, is Vanguard an option for us?"

TPA:  After an awkward pause, as if she was carefully choosing her words, she coldly replied..... "They're on the list".        (and then crickets chirping)

 I went home and began the process of moving to Vanguard, whom I already had other accounts with.

Thanks for pointing this out. We all have horror stories. Its worth repeating what the sales person who has no compassion whatsoever, "They're on the list." Those people will NEVER change either. It is utterly incomprehensible that many teachers become these ice-cold people who ONLY think about their best interests. 

With my money in Vanguard, I know it is out of the hands of much of the insurance and financial institutions of this country. But it's not just me, it's you, Tony, Ed, Dan and Scott, and over 20 million additional Vanguard clients also sense that something stinks with the vast majority of industry people who get lucrative salaries and commissions to manage our money. 

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...