Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
403(b) choices?
Old 07-07-2014, 06:58 PM   #1
Confused about dryer sheets
 
Join Date: Jul 2014
Location: Baltimore
Posts: 3
403(b) choices?

Hi everyone! I'm new to this forum. I found my way here reading a few threads abuot 403(b) plans. I'm a teacher (7th year in the classroom) but new to the public school system, so I'll be starting my 403(b) plan this year. My district offers three choices:

-VALIC
-Lincoln Financial
-ING

Does anyone have any insight into if one of these companies is better or preferable than the others? I have contacted the companies directly to get more information into what they offer, but I know it's a lot to expect a salesperson to make an unbiased comparison to other programs, so I thought I'd ask here!

According to the comparison chart provided by my school district, each charges between .27%-.50% of assets plus "underlying fund charges" that are not specified. This doesn't seem like a huge difference to me, which is why I'm struggling to choose.

A little background on me if it's helpful: I'm 30, single-income, and I hope to buy a house in the next year so I will be making very conservative contributions to whichever fund I end up choosing.

Thank you for your help and insight!
__________________

__________________
elise_hoffman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-07-2014, 07:30 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,278
We probably need a bit more information. VALIC, Lincoln Financial, ING appear to be companies - but what products do they offer? It's kind of like saying 'Should I buy this Ford, or this Chevy or this Honda, w/o knowing what vehicles were being offered, or what your needs are.

Unfortunately, these are probably companies that only offer annuities, which are probably not the best match. It seems to be rare for 403B plans to include any low cost providers, like Vanguard or Fidelity. And if they do, they are buried and marginalized.

I'd love to know why this is the case. Somebody must be getting a kick-back somewhere, or they simply buy the annuity sales pitch. But shouldn't teachers be the ones most likely to educate themselves on these matters (being educators themselves)? Shouldn't the Union be looking out for them?

Something seems fishy that this is so common - but hopefully, there are some good choices buried in there, if you can find them.


-Good Luck - ERD50
__________________

__________________
ERD50 is offline   Reply With Quote
Old 07-07-2014, 07:34 PM   #3
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,705
The difference between the e/r's is not huge, but measured over 20-30-40 years it is very significant.

Once you see the actual funds and associated expenses it will be clearer which to choose. An educated guess is ING coming in as best choice. Still, that's a guess.
__________________
target2019 is offline   Reply With Quote
Old 07-07-2014, 07:51 PM   #4
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
I had an unpleasant time dealing with VALIC (before the 2008 mess they were AIG-VALIC) on behalf of a parent. The 403(b) plan was opaque (opposite of transparent) and limited. I agree about options closer to Vanguard and Fidelity if available.
__________________

steelyman is offline   Reply With Quote
Old 07-07-2014, 08:03 PM   #5
Confused about dryer sheets
 
Join Date: Jul 2014
Location: Baltimore
Posts: 3
Thank you for the insights - I'm obviously a beginner at this stuff! The information out there is very overwhelming so it's helpful to have real folks to chat with.

Out of my three choice companies, I see that only ING offers Vanguard Target Retirement, while the others offer T. Rowe Price Retirement. This is making me think that ING may be a good choice for me to get started with.
__________________
elise_hoffman is offline   Reply With Quote
Old 07-07-2014, 09:12 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,278
Quote:
... ING offers Vanguard Target Retirement, while the others offer T. Rowe Price Retirement.
Ahhh, you might have some nice choices then - good! I think you'll find the Vanguard fund to likely have the lowest expenses, assuming ING doesn't throw some exorbitant fees on top of that. Then at least more of your money is working for you.

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 07-08-2014, 10:25 AM   #7
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,705
Quote:
Originally Posted by elise_hoffman View Post
Thank you for the insights - I'm obviously a beginner at this stuff! The information out there is very overwhelming so it's helpful to have real folks to chat with.

Out of my three choice companies, I see that only ING offers Vanguard Target Retirement, while the others offer T. Rowe Price Retirement. This is making me think that ING may be a good choice for me to get started with.
Just need the e/r for the company (ING, for instance) and the fund. ING may be .27 and the target fund is

There are probably other fund choices, but this is how enlightenment begins.

Somewhere your employer has a comparison, and the fees must all be revealed. Sometimes they forget.
__________________
target2019 is offline   Reply With Quote
Old 07-21-2014, 06:23 PM   #8
Confused about dryer sheets
 
Join Date: Jul 2014
Location: Baltimore
Posts: 3
Hi everyone! I've been researching the Vanguard funds that ING offers and so far I've got:

Total Bond Market Index Fund
Short-Term Bond Index Fund
Vanguard 500 Index
Vanguard Wellington Fund
Vanguard Extended Market Index Fund
Target Retirement Funds

Does anyone recognize any of these as being better than any of the other options? Any red flags or ones to avoid?

Also, Vanguard assesses an annual 0.50% fee and a 0.20% mutual fund fee. Is this pretty standard?

Thanks again, everyone, for your help and patience as I learn more about this!!
__________________
elise_hoffman is offline   Reply With Quote
Old 07-21-2014, 07:21 PM   #9
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
I have the equivalent of some of these (not all in Vanguard, because my plan doesn't offer them but they're much the same).

There's a "live" thread now about investing books that people like. Maybe you could park your money for now split between the S&P fund and total bond and check those recommendations out (it's summer, you can have iced tea too!).
__________________

steelyman is offline   Reply With Quote
Old 07-26-2014, 08:38 PM   #10
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 103
Quote:
Originally Posted by elise_hoffman View Post
Also, Vanguard assesses an annual 0.50% fee and a 0.20% mutual fund fee. Is this pretty standard?
That doesn't sound right. Most of Vanguard's index mutual fund expense ratios are in the 0.10-0.20% range, but I'm not aware of Vanguard charging a 0.50% of assets annual fee on top of that. ING, as the plan custodian, may be the one assessing that.
__________________
segfault is offline   Reply With Quote
Old 07-26-2014, 09:25 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,570
Quote:
Originally Posted by segfault View Post
That doesn't sound right. Most of Vanguard's index mutual fund expense ratios are in the 0.10-0.20% range, but I'm not aware of Vanguard charging a 0.50% of assets annual fee on top of that. ING, as the plan custodian, may be the one assessing that.
+1

Check out the fund prospectus it will have the fund's fee. I'm guessing the plan description would list out the custodians fee.
__________________
MRG is online now   Reply With Quote
Old 07-27-2014, 07:43 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,424
I think your best alternatives would be Wellington or a 65%/35% mix of the 500 and Extended Market Index funds or a target retirement fund that is almost all equities (stocks). Look at the expenses of those three combinations and select the one with the lowest cost.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 07-27-2014, 07:49 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,048
These fees suggest this may be an annuity product with some investments tied to it. Please read the product information carefully, as this is likely the reason for all the fees. Vanguard is not imposing the fees, ING is.

I would make sure I funded my IRA before I bought into an annuity product in a 403b plan.
__________________

__________________
Another Reader is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Regular 403(b) or Roth 403(b)? lhamo FIRE and Money 0 02-16-2008 08:14 PM
Need advice: traditional 403(b) vs. Roth 403(b) vs. Roth IRA vs. taxable account Silhan FIRE and Money 12 06-07-2007 11:08 AM
403(b) help? brewer12345 FIRE and Money 10 07-01-2005 02:06 PM
403(b) vs. 457(b) Differences WanderALot FIRE and Money 3 01-18-2005 01:55 PM
401(k)/403(b) and RE WanderALot Young Dreamers 2 09-10-2004 11:46 AM

 

 
All times are GMT -6. The time now is 12:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.