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Hi Everyone,

 

A while back a friend of mine chose Voya for their 403B. We now have access to Vanguard and I want to be able to provide her with "proof" that she is paying more for her Voya plan than it would cost for her to move to Vanguard. Where do you suggest I start my research to find out the costs of Voya vs. Vanguard? Any help would be greatly appreciated.

 

Thanks in advance.

 

JC

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JC

I say start right here at 403bwise.org. Lots of informational links on the main home page . Teacher  testimonial stories on here would help too ,and Dan's book Teach and Retire Rich opened my eyes and may do the same for her.  It's written in an easy to understand way that a newbie can grasp. Buy it for her as a gift. It's pretty cheap .Some folks need to see it in print before they believe something.  I don't blame them. I'm the same way. Just telling her won't do much good usually because everyone has an opinion.Plus ,some folks trust financial advisors because they are  seen  as experts and  many seek them out as knowledgeable  and because they don't want to do the research themselves.  But we know  how  often they   take advantage of teachers. We here  are on to them. They are nothing more than commissioned salespeople not true advisors.

From there I would take her to the Vanguard website and show her the fees they charge on their mutual funds. They have a nifty tool called fund comparison which might be useful as it will breakdown info about the funds you type in. Here is the link; 

https://personal.vanguard.com/us/faces/JSP/Funds/Compare/CompareEntryContent.jsp

Now if she has a Voya sales rep you can bet he/she will try and keep her right where she is by any means necessary  if she tries to transfer and  will feed her all sorts of misinformation. She might not see the urgency of changing  unless you encourage and help her with the transfer.

I don't mean to hate 403b salespeople, they are trying to make a living in a bad delivery system  but it's in your friends best interest to move over to Vanguard. But she won't have a helping advisor there and some folks need that and are willing to pay for it. In that instance Voya might be a better choice for her if she needs extensive handholding. Voya I believe might allow her to self direct into Vanguard but she will pay more in that structure.

Sorry to have rambled on so much. Hope I've helped a little.

Tony

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As a clarification of my above post that I wrote late at night and probably went on way  too long , The info I gave you is for retail funds which are not 403b specific  (taxable accounts. IRA. etc)so the fees within a 403b will probably be  somewhat different. Still it allows her to see the differences and why Vanguard over time with lower fees is a superior choice.  Honestly If she gets in the right funds  with VOYA  it is not necessarily a bad choice for her if she needs an advisor.

Low fees alone  are not enough to make someone a successful  investor if they don't understand the rest so educating her on the basics is always a good idea.

 

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20 hours ago, tony said:

Thank you so much for your thoughts. You are right. I should focus on educating my friend. I'm on it. Have a great weekend.

JC

I say start right here at 403bwise.org. Lots of informational links on the main home page . Teacher  testimonial stories on here would help too ,and Dan's book Teach and Retire Rich opened my eyes and may do the same for her.  It's written in an easy to understand way that a newbie can grasp. Buy it for her as a gift. It's pretty cheap .Some folks need to see it in print before they believe something.  I don't blame them. I'm the same way. Just telling her won't do much good usually because everyone has an opinion.Plus ,some folks trust financial advisors because they are  seen  as experts and  many seek them out as knowledgeable  and because they don't want to do the research themselves.  But we know  how  often they   take advantage of teachers. We here  are on to them. They are nothing more than commissioned salespeople not true advisors.

From there I would take her to the Vanguard website and show her the fees they charge on their mutual funds. They have a nifty tool called fund comparison which might be useful as it will breakdown info about the funds you type in. Here is the link; 

https://personal.vanguard.com/us/faces/JSP/Funds/Compare/CompareEntryContent.jsp

Now if she has a Voya sales rep you can bet he/she will try and keep her right where she is by any means necessary  if she tries to transfer and  will feed her all sorts of misinformation. She might not see the urgency of changing  unless you encourage and help her with the transfer.

I don't mean to hate 403b salespeople, they are trying to make a living in a bad delivery system  but it's in your friends best interest to move over to Vanguard. But she won't have a helping advisor there and some folks need that and are willing to pay for it. In that instance Voya might be a better choice for her if she needs extensive handholding. Voya I believe might allow her to self direct into Vanguard but she will pay more in that structure.

Sorry to have rambled on so much. Hope I've helped a little.

Tony

 

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17 hours ago, krow36 said:

I think you should start out looking for both vendor's fees in 403bcompare:     https://www.403bcompare.com/Vendors/Browse

Once you know the fees, you can use this calculator to find the balance over time by running it for each vendor: https://www.bankrate.com/retirement/calculators/403-b-calculator/

Great site. I will head there now. Thank you.

 

JC

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