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douglaspark

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The following is a list of companies I can choose from for a TSA. Are any of them good with reasonalbe fees?

Aetna

American United Life

Conseco Annuity Assurance

First Investors

Galic

Horace Mann Life Ins Co

Jackson National Life Ins Co

Lincoln National Life

The Pioneer Group

United Omaha Life Ins Co

Waddell & Reed

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Guest Guest_LBJackson

It appears that your school's list for a tax-sheltered account (TSA) plan allows fund assets to be invested in mutual funds rather than in an annuity. With a 403(b)(7) plan, a custodian must be named. This plan is funded by employee salary deferral, and employees are responsible for directing their investments within the mutual fund options that are available to them. Waddell & Reed offers 403(b)(7) plans with its affiliate, Fiduciary Trust Company of New Hampshire, serving as custodian.

 

Waddell & Reed, as a broker/dealer that represents mutual funds is your best bet. Of the funds they offer there are likely to be no-load, lost managemnt fees.

 

Good luck and I this was helpful to you.

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I would stay away from any annuity product. Waddell & Reed is a good bet. If you do choose an annuity fund, make sure you choose one with low costs. Try to invest only in index funds within the annuity. Good luck.

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Hi Doug,

Why don't you try and get TIAA CREF on the list of approved companies. TC has been mounting an aggressive compaign sign on to K12 school districts for a few years now. TC is the lowest cost annuity around with no surrender fees on all but one product.

Steve

 

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Guest Erik

American United Life is an insurance company however they have a 401k product that give access to no load funds for only $25. I do not know what there 403b product is but you may want to check it out. Call the agent and say, "Hi this is Doug with XISD, you are on my districts 403b list, what product do you offer?" He'll give you an answer, then say "is that a variable annuity?" If he says "yes" ask what the M&E is. Anything over .5% - hang up.

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Guest Guest_mike

If I were you, I would go with first investors corp. They are financial services company who offer mutual fund options for 403b's like american funds. And furthermore, they have provided me with very good service and advice with all my financial needs, something a no-load company can never do.

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Hi douglaspark,

As you can see you have been given differing opinions about what to do. In my humble opinion, stay away from any of the companies on that list. All of them will give you good service and advice but it is up to you about paying for that advice. Also you were told that a no load company can "never" provide you with that level of service. No load companies are for those people who will take the time to learn what they are doing. In my opinion, the service provided by the companies on your list come at a cost that I will not pay. But I am not you. If you know the price and are willing to pay for it, then it is none of anybody business, more power to you. Some people do not mind paying 5% upfront or back end load and paying over 2% annual expenses. Over long periods of time, however, the difference between a fund such as Vanguards .18% on their s and p 500 index and a fund charging 2% per year is staggering. Handholding is NEVER free and it is almost never at the rate of a no load company.

On this site we recommend one thing--educate yourself by reading all the articles here and any book by John Bogle or the 403b wiseguide book advertised on this site. 403b planning is NOT rocket science and just about anybody with some initiative can learn basic investment strategies. You have taken a giant leap by asking a question here. You are already a million miles ahead of 98% of all of our edcuation colleagues. Educating yourself will make all the difference in the world for your successful retirement planning.

Come back and ask more questions and let us know what you did.

Good luck,

Steve

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