Jump to content
Adrienne

AXA drop out

Recommended Posts

Hi all-

I am a NYS teacher for 15 years with AXA. Recently I am seeing how I am NOT making as much money as I should be.What is the best way to get out of this without surrendering so many fees.....?

Thanks in advance.

Adrienne

Share this post


Link to post
Share on other sites

The first step is to look up your district's 403b vendor list. It should be on their website or that of the district's third party administrator. Hopefully there will be a low-cost vendor. You can stop your contributions to AXA and as soon as you've got the new account set up, you can start the process of moving your AXA balance to a lower-cost vendor. 

Teachers in NY state have an excellent 457 plan run by the state. You can contribute to that as will as to a 403b. See if your district has the state plan on its 457 vendor list, and if it does, I would sign up and contribute to it after stopping the AXA contributions. You can't move your 403b balance to the 457 plan, so you need a low-cost 403b plan to hold your AXA balance, whether you want to continue contributing to a 403b plan or not. 

So, to help you out, we need the 403b vendor list for your district.

Share this post


Link to post
Share on other sites
11 minutes ago, krow36 said:

The first step is to look up your district's 403b vendor list. It should be on their website or that of the district's third party administrator. Hopefully there will be a low-cost vendor. You can stop your contributions to AXA and as soon as you've got the new account set up, you can start the process of moving your AXA balance to a lower-cost vendor. 

Teachers in NY state have an excellent 457 plan run by the state. You can contribute to that as will as to a 403b. See if your district has the state plan on its 457 vendor list, and if it does, I would sign up and contribute to it after stopping the AXA contributions. You can't move your 403b balance to the 457 plan, so you need a low-cost 403b plan to hold your AXA balance, whether you want to continue contributing to a 403b plan or not. 

So, to help you out, we need the 403b vendor list for your district.

 

D6762B15-4BD0-456A-A390-84F6692ED9ED.jpeg

Share this post


Link to post
Share on other sites
13 minutes ago, krow36 said:

The first step is to look up your district's 403b vendor list. It should be on their website or that of the district's third party administrator. Hopefully there will be a low-cost vendor. You can stop your contributions to AXA and as soon as you've got the new account set up, you can start the process of moving your AXA balance to a lower-cost vendor. 

Teachers in NY state have an excellent 457 plan run by the state. You can contribute to that as will as to a 403b. See if your district has the state plan on its 457 vendor list, and if it does, I would sign up and contribute to it after stopping the AXA contributions. You can't move your 403b balance to the 457 plan, so you need a low-cost 403b plan to hold your AXA balance, whether you want to continue contributing to a 403b plan or not. 

So, to help you out, we need the 403b vendor list for your district.

Here is the 457 list. TIA.

C4820EC1-8F5A-4A98-A5B3-AA014D0161DC.jpeg

Share this post


Link to post
Share on other sites

Adrienne

My advice is that you self direct into Aspire which is a non insurance product and invest in a Vanguard Target Fund closest to your age of retirement, Then let it ride until you retire. You will do well and you won't have to mess with it any further as it is self managed for you . Its low cost and you will do well. Its made up of index funds which outperform over time.  Self directing means you write self direct on the Aspire application form and you don't use an advisor which saves you on fees. It appears it's already circled  on your potocopy.

You can call Aspire or download the application form from their website. Your school system might also be able to supply the forms if the website confuses you.

Your 457b seems like a hodgepodge of choices none which seem  all that good. Plus the fees are not shown.  From what it shows i would be hard pressed to put a diversified portfolio together  at low cost plus while TRP is a good company I think their Target funds might be higher cost than Vanguard through aspire.

Tony

Share this post


Link to post
Share on other sites

Thanks so much for the info. What is your advice on getting out of AXA with surrendering fees( I think it’s 10 years???). Should I just take the hit or stop contributing until I can move it free of charge? Again, thank you.

Share this post


Link to post
Share on other sites

Adrienne

How much money do you have in the account? 

You can  stop AXA contributions  and take the hit and move on to Aspire through a transfer (Aspire has no surrender fees BTW) or you can periodically transfer from AXA to Aspire every few months as money clears from the surrender fees. You can call AXA  main office (not the salesperson)every few months to see how much money can be transferred without a surrender fee. This means you will have to fill out transfer paperwork over and over until you drain the account.

Most people bite the bullet, pay the surrender fee and move on . You will eventually make up that lost money by paying lower fees.

This is what I would do and then focus on saving all i can. Others might offer different advice. You will have to weight any differing opinions.

Share this post


Link to post
Share on other sites

Now that Krow shows the fees I feel better about the 457b but I still don't like the choices!  Too many different companies and kind of confusing but Krow's choices would certainly work at a very good cost level.

I still vote for  a Vanguard  Target Fund through Aspire. If you want a hands off approach I still say go Aspire-vanguard..

Just my opinion. STAY AWAY FROM INSURANCE COMPANIES AND THEIR ADVISORS!!!

Share this post


Link to post
Share on other sites

 

13 minutes ago, Adrienne said:

Tony navigating through the AXA account is not easy. Nothing on my account shows any fees, in general, or for surrendering. I will be inquiring tomorrow.

It's not easy on purpose. It's often intentional complexity to make you feel helpless and need of an advisor. Call AXA directly and ask the hard questions directly. Also check your monthly or quarterly statements. The info might be there. We can help you transfer to either Aspire or your 457b plan whichever you choose. However I'm not sure you can transfer your 403b account to your 457b. I'd check on that. I assume your AXA account is a 403b?

Share this post


Link to post
Share on other sites

The administration fees of the NY state 457 are low: $20/yr plus 0.03%. The TRPrice target retirement funds have an expense ratio of 0.38%, so I would skip them. We can give you suggestions on the percentage of the 3 funds if you'd like. Or maybe you've already settled on an asset allocation? Stocks/bonds? % of stocks in international?

Unfortunately the 403b can't be transferred to the 457 unless the 403b was with a previous employer. Previous posters have confirmed this with the NY state 457. I think it's an IRS rule. 

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...