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TonyZ

Aspire or NEA Direct Invest

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Hey Everyone,

Doing my research about Aspire to see what investment options they provide and I can’t find any forms with Fees or expense ratios just the investments?  Do I have to contact them to get an investment and fee packet? 

 

Thank you 

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I've been in and out on your thread(s) TonyZ so I may have missed something, but I still think you should take the time to enumerate every 403b and 457b vendor (include state sponsored plans) that your district has approved.

To answer your question about Aspire, I've already done the leg work for you here.

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2 hours ago, TonyZ said:

Hey Everyone,

Doing my research about Aspire to see what investment options they provide and I can’t find any forms with Fees or expense ratios just the investments?  Do I have to contact them to get an investment and fee packet?  

On the Aspire website, after you get to “403b”, select “Fund Search”. Select “Find a fund family” and choose Vanguard. Scroll down and select for example Vanguard Total Stock Mkt Idx Adm (VTSAX). When you click on VTSAX, you will get the Morningstar website that tells you that the expense ratio (ER) is 0.04%. You can get this same webpage by googling VTSAX.

Under Aspire's Resource Center menu, go to FAQ. Scroll down and find “What are the fees to participants?”

Quote

Aspire charges a $40 account fee and a custody fee of 15 basis points (0.15%) of the account value annually for its recordkeeping services. These fees are assessed against the participant's accounts monthly. In most cases, up to $20 of the account fee is used to offset some or all of the TPA's fees.

Take some time to check other parts of the FAQ. There's a lot of useful information there. The only fees you will pay are Vanguard’s ER and Aspire’s 0.15% and the $40/yr. Instead of VTSAX, you may want to use a target retirement (TR) fund which combines both stocks and bonds and keeps them balanced over time. Tell us your age, investment experience and years to retirement and we can help you pick one of the TR funds.

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Target Retirement funds come with various years in their title, which represent the estimated retirement year. You can use the retirement year, or you can decide what stock to bond ration you want, and choose the TR fund with that ratio. For instance, you might be a young teacher just starting out and may guess you would retire in 2055. That has a stock to bond ratio of about 90 to 10, which you may decide is too aggressive. You might decide that a ratio of 70 to 30 is more appropriate for you. If you look at the M* sites on the various TR funds, you'll find that the Vanguard TR 2030 fund fit's the bill. Vanguard TR funds an expense ratio of 0.14%, which is a bit more than the VTSAX fund, but low enough. They do the rebalancing for you as the market goes up and down. They also slowly become more conservative, adding bonds and reducing stocks as you get closer to retirement. You can change your mind and pick a different fund(s) later if you want, without any tax consequences, because the funds are in a 403b account. 

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Thank you again very informative.

Great idea, I will find out what 403b plans are offered, right now no one knows if there are more providers than Axa Lincoln financial and Aspire.  

I’m 37yrs old and I can retire at 55 and will have 30 years service credit. I have no investment experience but I’m willing to learn and research if it can help me save more money. 

Is a one fund TR worth the extra cost of 2-3% total profits in comparison to a three fund portfolio? 

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12 hours ago, TonyZ said:

Is a one fund TR worth the extra cost of 2-3% total profits in comparison to a three fund portfolio? 

It's a personal decision. Some folks have no interest in managing their investment and to them it's worth to pay about 0.05% to 0.10%  more in ER fees. Some folks don't trust themselves to manage it, although it's not difficult, and help is always available here. If you use a 3 fund portfolio of VG index funds, it's very likely that the rate of return over time will be will be slightly higher due to the slightly lower fees. Probably the difference in rate of return would be less than 0.10%, but I would not expect a 2-3% difference. For example, I would guess that the 3 funds (using 70/30 ratio) might have a rate of return over 10 years of maybe 8.4% and the TR 2030 fund 8.3%. I'm making up the numbers, but that's the kind of difference I'd expect.

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I’m 37yrs old and I can retire at 55 and will have 30 years service credit. I have no investment experience but I’m willing to learn and research if it can help me save more money. 

So you could go with the TR 2035 (~18 years from now) fund, or with the TR 2030 fund. Why don't you look up the stock/bond ratio of the TR 2035 fund? Remember there's no problem converting your balance in a TR fund to the 3 fund portfolio in the future after you're more familiar with investing and want to have the absolutely lowest fees possible. Low fees do save you money.

Of course the  big factor in your retirement balance is how much you contribute. The effect of your continuing contributions dwarfs the effects of an extra fee of 0.10% !

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If one were to invest in a target date fund then picking the date based on your expected retirement is fine. However, it is better to pick the fund based on its current bond/stock split and its future glidepath (i.e. how quickly and to what degree it adds more bonds in the future).

Your portfolio needs to match your risk tolerance. 

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Good afternoon any insight to the following information I received today would be greatly appreciated. I stopped all payments effective this month. 

According to Axa Rep:

My fees for this year were 2.28%

growth is 36%

paid in 66k

Currently have 88k 

After further investing approved 403b investors are (no Aspire even though one of my colleagues was put into it by Rep.)

AXA Equitable                    

Great American             

Lincoln Investment         

Metropolitan Life             

SecurityBenefits Life

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45 minutes ago, TonyZ said:

SecurityBenefits Life

Unless I'm wrong looks like you can do the Direct Invest through Security Benefit because its in your plan after all.. If Aspire is  available you need to make sure it gets on the list. So Tony the best move is transfer to SBDI. Surrender charges  possibly apply. Do you understand what a surrender fee is?

 

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Enroll in Security Benefit’s NEA DirectInvest, transfer your AXA stuff into it, and be done with it. Ask questions as needed.

Once you get that sorted out then ask yourself if you’ll ever max out the 403b (19k) and if you will then you can work on getting Fidelity added because they offer the best 457b. 

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ED I agree I just don't want him to be in shock if he sees the surrender fee applied. I've been a few situations when I encouraged others to transfer and they later reamed me out about  not warning them about the surrender charge. 

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47 minutes ago, TonyZ said:

growth is 36%

paid in 66k

Currently have 88k 

 

Over how many years  did you get this 36% return and what were you invested in?  Just curious.

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I have had this account with AXA for 12 years. 

I understand the surrender fee I believe many have said its worth it and I agree. 

Tomorrow I’m going to download all paperwork from SB on DI and read it over and if I have any questions I will reach out. 

 

Thank you

 

 

 

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25 minutes ago, TonyZ said:

I have had this account with AXA for 12 years. 

Good luck you are doing a good thing for yourself. Spread the word to your fellow teachers.

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