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dpfromrockhillsc

Switched From Valic To Edward Jones

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hello all..I'm new here so I apologize if this has been asked before

 

to make a long story short I invested in Valic for about 10 years, became dissatisfied, and switched my 403b to Edward Jones company

 

realistically I have no clue what funds I should be in, or how much to contribute..at one time I was contributing 500 a month into Valic, and when I switched over to Edward Jones I lost a lot of value..now im contributing 275 a month

 

any help or advice is greatly appreciated

 

I have taught for 13 years and have 15 more until I can retire..thanks

 

dpfromrockhillsc

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dp,

 

Sounds like you want advisor support (you had Valic, now you're going to Edward Jones). What is your Edward Jones guy recommending? What state are you located in? Why Edward Jones? What is your risk tolerance?

 

Chad

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Chad..I started in Valic because another school employee was the rep..I was brand new to investing and he was the only rep I had ever met..100% of the people contributing at my school were in Valic..when my account became of less value than the amount I had contributed, me and another guy at school decided to drop Valic. Another school employee had recently quit teaching and went to work for Edward Jones..He simply told me that Edward Jones would outpreform Valic so me and my friend switched (this has been 3 years ago)..I live in South Carolina, and would say that my risk tolerance is moderate..The guy who signed me up for Edward Jones has now returned to teaching and my account was turned over to a former student of mine who went to work with Edward Jones..I am not at all confident in this guy as my account manager, but have taken no action up to this point..he and I have never sat down face to face..my account is spread into 8 different funds, all recommended by the first guy who switched me to Edward Jones..my plan is to learn as much as possible fast, then have a sit down meeting with my account manager and decide what action to take..I have not been active at all in terms of knowing about my account, and recently, I've had the feeling of stopping these contributions altogether and maybe investing elsewhere (was thinking of real estate, as in buying a piece of land and sitting on it)..thanks for any input or suggestions

 

Ira..I do not know what no load funds are, and in fact I don't know if I have a variable, or fixed annuity with Edward Jones..again thanks for any comments or suggestions

 

dp

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dp,

 

No load funds are funds that you can buy that do not involve a salesman. There are no load commissions involved to buy the funds. Generally, these commissions average about 5 percent. Additionally, the annual expenses to management for the funds at a no load investment company is generally considerably less than at load companies.

 

I use low cost funds for investing, as well as many who post here. It's the way to go if you want to maximize your investments .

 

I wonder, if you read any of the advise to develop financial knowledge that was given to other beginner investors on some of the other threads?

 

A recommended web site that several of use is www.diehards.org, part of a morningstar site. This will be informative for you. Additionally there are various books listed there that will give you a good basic orientation to investing.

Although I haven't read the book that Dan Otter wrote, I noticed that it has been recommended at this site by Joe, a person that I respect.

After you develop a little financial knowledge, you will be able to develop your own financial portfolio.

 

IT IS IMPERITIVE THAT YOU GET A GOOD BASIC FINANCIAL EDUCATION BEFORE YOU PROCEED

 

dp, what's your first name.

 

Please feel free to ask questions.

 

Ira

 

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thanks Ira..my first name is David

 

tonight I will go to diehards and read up on investing

 

if I decided to drop Edward Jones what would I do with my money?..how would I go about transfering the funds into something else so I would not lose anything?..also how do you invest without using a rep?

 

thanks

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Hi David,

 

You are asking good questions.

 

There are several parts to the answer, and if I don't answer everything, hopefully other posters will add additional information.

 

As I see it, the two main parts that you have to consider, is the investment that is currently at Edward Jones and new money that you plan to invest.

 

1) New money to be invested---you need to get a list of the companies that are authorized to deduct money for your 403b (from the human resources dept). There will be several that are from insurance type funds and have loads, and only a few that are no load. Some no load companies are Vanguard, USAA, INvestco, Fidelity Investments. Vanguard because of the lowest cost for fund management, in my opinion is the best. If you have a problem identifying the no load fund companies that your employer makes available, post the list and we can pick the no load one's out.

The human resources dept will let you know what steps are required to access the fund company that you decide on.

 

2) Money currently at Edward Jones- this is slightly more difficult to answer. You can contact Vanguard directly at 1-800-onboard where they have a 403b program. They will bring the money into one or more of their funds which you will have to decide on (so you need to acquire a little more financial knowledge).

 

Now, you also have to contact Edward Jones to find out if there is any surrender charges that they impose to get you money out (many of these load companies have surrender charges-- a lot of times you have to have money there for a certain amount of time--). If there is a surrender charge based on time, part of the money may be available to move, while you would have to wait to move other money).

 

Additionally, if there is a match from your employer, I think that the ability to move money is somewhat affected(frankly,I'm not really sure of the restrictions, but I heard it discussed at this site). I don't know if this affects you. Please let us know.

 

FYI. There is also a site that you can access called 403bcompare which lists expenses that various fund companies charge.

 

I hope that the above answers are answered.

 

I look forward to hearing back from you.

 

Ira

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thank you Ira..im digesting your post in small units

 

if i cannot move my funds from Edward Jones, and if i were to start new with a no load fund,wouldnt i lose a lot in the compounding department?..so i would really have 2 seperate accounts?

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Hi David,

 

New money can go anyplace that you designate. It can go to any fund company that you want. In fact, you can have money in different funds, at different companies. Where the new money goes will not affect the money that you have already invested.

 

When you develop an asset allocation(Iknow that this a foreign word for you, but you will understand it when you read your first financial book) you take all your investments into consideration.

 

By the way I just finished reading a book called, "The only guide to a Winning Investment Strategy (the 2005 edition) by Larry E. Swedroe. I recommend the book.

 

I hope that I understood your question.

 

Ira.

 

 

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David,

 

Sounds like you haven't been getting much service from your rep. If I were you I would contact TIAA-CREF and explain your situation to one of their support people. They can suggest a few of their funds that would give you a moderate risk allocation. Their fees are low and the performance on their funds is pretty good. Good luck.

 

Chad

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Guest Sierra

Posted: Jun 12 2005, 10:10 PM

 

 

 

 

 

 

Group: Members

Posts: 4

Member No.: 795

Joined: 12-June 05

 

 

 

hello all..I'm new here so I apologize if this has been asked before

 

to make a long story short I invested in Valic for about 10 years, became dissatisfied, and switched my 403b to Edward Jones company

 

realistically I have no clue what funds I should be in, or how much to contribute..at one time I was contributing 500 a month into Valic, and when I switched over to Edward Jones I lost a lot of value..now im contributing 275 a month

 

any help or advice is greatly appreciated

 

I have taught for 13 years and have 15 more until I can retire..thanks

 

dpfromrockhillsc

 

 

 

 

Chad..I started in Valic because another school employee was the rep..I was brand new to investing and he was the only rep I had ever met..100% of the people contributing at my school were in Valic..when my account became of less value than the amount I had contributed, me and another guy at school decided to drop Valic. Another school employee had recently quit teaching and went to work for Edward Jones..He simply told me that Edward Jones would outpreform Valic so me and my friend switched (this has been 3 years ago)..I live in South Carolina, and would say that my risk tolerance is moderate..The guy who signed me up for Edward Jones has now returned to teaching and my account was turned over to a former student of mine who went to work with Edward Jones..I am not at all confident in this guy as my account manager, but have taken no action up to this point..he and I have never sat down face to face..my account is spread into 8 different funds, all recommended by the first guy who switched me to Edward Jones..my plan is to learn as much as possible fast, then have a sit down meeting with my account manager and decide what action to take..I have not been active at all in terms of knowing about my account, and recently, I've had the feeling of stopping these contributions altogether and maybe investing elsewhere (was thinking of real estate, as in buying a piece of land and sitting on it)..thanks for any input or suggestions

 

Ira..I do not know what no load funds are, and in fact I don't know if I have a variable, or fixed annuity with Edward Jones..again thanks for any comments or suggestions

 

dp

================================================

THIS IS THE KIND OF TRAGIC ABUSE THAT 403b EMPLOYERS HAVE INFLICTED ON THEIR EMPLOYEES OVER THE PAST 46 YEARS. IN MY VIEW IT IS CASE STUDIES LIKE DPs THAT HAVE GREATLY INFLUENCED THE IRS TO ISSUE FINAL 403b REGS.

 

dp: You have at least the next 15 years to recover from this abuse. Think of all your colleagues that have been in these 2 percent shark investments for 30 or more years and maintain them into retirement! It is common to come in contact with people that have been in these high cost 403b investments well past age 70-1/2 when their account balances become subject to Required Minimum Distributions.

 

The 2 percent 403b sharks of the world have copied the tobacco industry's business plan: Get them "addicted" when they are young and keep them "addicted" until they die!! And laugh all the way to the bank!

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Sierra..........I for one agree with your point that people have been hurt by shark attacks, not only in the 403b investment world by insurance companies, but also in other industries, to include tobacco where there has been distorted presentations of information in order to get the consumer to purchase the product (to his or her detriment). In the case of 403b and tobacco, the most profit is realized by selling to a new eligible worker, or a young potential smoker who will be encouraged to keep using the product (until outside pressure is brought on the industry to stop them).

 

Ira

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