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Is your union hiring your financial advisor with your dues?
Old 05-01-2006, 01:30 PM   #1
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Is your union hiring your financial advisor with your dues?

Geez, and I thought FirstCommand was a bad deal!

"[Leaders of teacher's unions] defend the endorsement deals and the prevalence of high-fee annuities. They say that teachers get valuable advice from brokers and financial advisers in return for the fees, and that the companies' contributions to union coffers help pay employee salaries and other union expenses.
Yet no one disputes that this money ultimately comes out of teachers' pockets."
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Re: Is your union hiring your financial advisor with your dues?
Old 05-01-2006, 04:14 PM   #2
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Re: Is your union hiring your financial advisor with your dues?

Quote:
In Wisconsin the teachers union set up its own low-cost 403(b) program. The Wisconsin Education Association, which represents most K-12 educators in the state, charges an annual fee of 0.30 percent of assets. The money pays the salaries of half a dozen registered securities representatives, who answer teachers' questions and provide financial advice over the phone.

"We have no profit motive. Our goal is to cover the cost of operations and keep the cost to participants as low as possible," said Randy Mullis, assistant executive director of the union's Tax Sheltered Annuity Trust in Madison.

Teachers are given a range of investment choices, including a Vanguard stock index fund that charges 0.05 percent a year. With the union fee, the total is 0.35 percent of assets--a fraction of the cost of most union-backed plans. Several years ago, Mullis said, the NEA asked the Wisconsin union to help promote the Valuebuilder annuity. "We said that in all good conscience we can't do that," he said.
good for them I see a lot of stories on teachers being sold annuities. :P
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Re: Is your union hiring your financial advisor with your dues?
Old 05-01-2006, 04:35 PM   #3
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Re: Is your union hiring your financial advisor with your dues?

If you was a good analysis of the whole sorry state of 403b programs for most people in education and most specificly k-12 teachers check out www.403bwise.com
Some conscious teachers have been fighting for years for a decent program from their school district and their union with little to show for it.
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Re: Is your union hiring your financial advisor with your dues?
Old 05-03-2006, 09:37 AM   #4
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Re: Is your union hiring your financial advisor with your dues?

Interesting thread. Being a teacher and all (Minnesota) in a fairly large district with a pretty strong union, I have to say that it isn't the Union here that is keeping our 403B filled with disgustingpoor choices, but the lack of interest/knowledge of the teachers themselves. We have been working for years on getting better choices, but the resounding chorus of "who cares" from the masses makes it difficult. Also working on getting a 403B Roth added. Again "what? who cares!!". Bummer.
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