Help with American Century Funds

[BTravlin]

My wife has about $78k in a 403b fund at Fidelity but they have advised they are discontinuing their 403b plans. She needs to transfer her funds to an employer approved vendor and American Century is the best choice out of the options available. We are looking to maintain a 60/40 AA and would like some recommendations on which of their NL funds to consider. I'm 52 and she is 47. We have a sizable retirement portfolio already and therefore are not looking to be too aggressive. Any suggestions?

 

[Gotadimple]

Have you tried calling their customer service? They may make recommendations for you.

 

[ERD50]

When you say "they are discontinuing their 403b plans", do you mean that Fidelity is no longer approved by the employer, or that Fidelity is no longer supporting 403b plans?

DWs 403b is with Fidelity, so I hope this is not a Fidelity decision - I wasn't impressed with the other choices that she has (no Vanguard).

-ERD50

 

[BTravlin]

Have you tried calling their customer service? They may make recommendations for you.

No, I've not done that yet but do have to call the local rep assigned to the plan. Will ask then and see what they have to say.

When you say "they are discontinuing their 403b plans", do you mean that Fidelity is no longer approved by the employer, or that Fidelity is no longer supporting 403b plans?

DWs 403b is with Fidelity, so I hope this is not a Fidelity decision - I wasn't impressed with the other choices that she has (no Vanguard).

-ERD50

It reads to me like they are doing away with all 403b type plans altogether although they will allow us to rollover to a Roth 403b. Here is what the letter says:

"Dear Valued Plan Participant,

I am writing today with an important announcement regarding your Fidelity Advisor 403b account. Effective June 21, 2010. Fidelity Investments has discontinued offering the Fidelity Advisor 403b program. In addition, after October 1, 2010, we will no longer accept additional contributions into your account.

The FA 403b program was established in 2001 as a new retirement product for employees of public educational institutions. The program was specifically designed for the K-12 public school market. However, the program has not reached a level that supports the reinvestment necessary to provide you and your plan sponsor with the tools and services needed to remain competitive. Therefore, we have made the difficult decision to discontinue offering this product."

 

[ERD50]

It reads to me like they are doing away with all 403b type plans altogether although they will allow us to rollover to a Roth 403b. Here is what the letter says:

"Dear Valued Plan Participant,
...

Hmmm, I logged onto DWs account and no messages or other info to that effect. Then I called to check, the rep had not heard of this either.

I noted that your letter specifically stated ' Fidelity Advisor ' accounts, and the word 'advisor' does not show up anywhere on our docs. I mentioned this, and the rep said that advisor accounts are a very small part of their business, and although she hadn't heard of them being discontinued, it could be since she doesn't work that end (and not being an issue for me, I didn't bother to press for an answer, since your letter is your answer).

Apparently, Advisor accounts have additional fees associated with them - you might want to ask around and see if your employer can offer some low fee options like the straight Fidelity Investor 403b accounts. IIRC, Fidelity looked to be the only low fee offering for us, I was thankful to have at least one.

So apparently, they (Fidelity) are not 'doing away with all 403b type plans altogether' - they are doing away with their 'Advisor 403b plans'.

-ERD50

 

[DblDoc]

I have a 403b with Fidelity in their NetBenefits program. No notice that it is canceled.

DD

 

[friar1610]

I'm sure you have looked at this thoroughly but because it is a 403B plan, is there any chance that TIAA-CREF is one of the choices? If so, that might be a lower cost, more Boglehead type alternative.

I had American Century funds many years ago (when they were called "20th Century") but have no current experience with them.

 

[BTravlin]

Hmmm, I logged onto DWs account and no messages or other info to that effect. Then I called to check, the rep had not heard of this either.

I noted that your letter specifically stated ' Fidelity Advisor ' accounts, and the word 'advisor' does not show up anywhere on our docs. I mentioned this, and the rep said that advisor accounts are a very small part of their business, and although she hadn't heard of them being discontinued, it could be since she doesn't work that end (and not being an issue for me, I didn't bother to press for an answer, since your letter is your answer).

Apparently, Advisor accounts have additional fees associated with them - you might want to ask around and see if your employer can offer some low fee options like the straight Fidelity Investor 403b accounts. IIRC, Fidelity looked to be the only low fee offering for us, I was thankful to have at least one.

So apparently, they (Fidelity) are not 'doing away with all 403b type plans altogether' - they are doing away with their 'Advisor 403b plans'.

-ERD50

I have a 403b with Fidelity in their NetBenefits program. No notice that it is canceled.

DD

ERD50 is correct that only the 403b Advisor program has been discontinued.

I'm sure you have looked at this thoroughly but because it is a 403B plan, is there any chance that TIAA-CREF is one of the choices? If so, that might be a lower cost, more Boglehead type alternative.

I had American Century funds many years ago (when they were called "20th Century") but have no current experience with them.

TIAA-CREF is one of the choices and they are definitely low cost but their performance has also been pretty mediocre.