LRDave
Thinks s/he gets paid by the post
DW has a mandatory 403(b) plan at her employer as a SS substitute.
Only two possible choices for providers: TIAA-CREF and Valic. She is with TIAA-CREF.
We were wondering about increasing her contribution. We certainly can increase her contribution, but her employer has contributed all they are going to contribute.
While searching here, I found the 403bwise site and also read the 403b-related threads. My conclusion was that TIAA-CREF was "better than the average bear" when it comes to costs and fees for administering to an annuity plan.
Her "Personalized rate of return" last year with TIAA-CREF was 3.8%. I found how they calculated that figure in her quarterly statement - Modified Dietz method. OK -I can dig that.....I understand IRR calculations and their method seems reasonable and we aren't getting hoodwinked with fuzzy math on return calculations. (I think....)
(OK - here's where the dumb questions part of this post starts....)
So I was trying to find out how much it costs us in fees or admin charges or whatever for her participation in this 403(b) plan. I read every word and number on her statements and it was not there anywhere. So I called TIAA-CREF. I did not get a satisfactory answer. Well, I guess I really got no answer. I finally got to the point at the end of the conversation where I was told fees were discussed in prospectuses with links on the home page and I could go sort it out if I wanted. The main point I was beaten over the head with was: "Look, any fees are already calculated in in your personalized rate of return - so don't worry about it."
Let's say DW and I want to devote an extra $250/month to retirement savings. We can fill out a form and it becomes a payroll deduction. In the spirit of full disclosure, DW and I have not always been the best savers (I can't find an embarrassed emoticon...) and pre-paycheck deductions will likely provide the support for the spine we sometimes lack.
Or we could take after-tax dollars and start the Roth IRA we really should do with Vanguard and known-and-low fees. (We don't even have a Roth in our portfolio - embarrassed emoticon again....)
Any thoughts or insights are appreciated.
Only two possible choices for providers: TIAA-CREF and Valic. She is with TIAA-CREF.
We were wondering about increasing her contribution. We certainly can increase her contribution, but her employer has contributed all they are going to contribute.
While searching here, I found the 403bwise site and also read the 403b-related threads. My conclusion was that TIAA-CREF was "better than the average bear" when it comes to costs and fees for administering to an annuity plan.
Her "Personalized rate of return" last year with TIAA-CREF was 3.8%. I found how they calculated that figure in her quarterly statement - Modified Dietz method. OK -I can dig that.....I understand IRR calculations and their method seems reasonable and we aren't getting hoodwinked with fuzzy math on return calculations. (I think....)
(OK - here's where the dumb questions part of this post starts....)
So I was trying to find out how much it costs us in fees or admin charges or whatever for her participation in this 403(b) plan. I read every word and number on her statements and it was not there anywhere. So I called TIAA-CREF. I did not get a satisfactory answer. Well, I guess I really got no answer. I finally got to the point at the end of the conversation where I was told fees were discussed in prospectuses with links on the home page and I could go sort it out if I wanted. The main point I was beaten over the head with was: "Look, any fees are already calculated in in your personalized rate of return - so don't worry about it."
Let's say DW and I want to devote an extra $250/month to retirement savings. We can fill out a form and it becomes a payroll deduction. In the spirit of full disclosure, DW and I have not always been the best savers (I can't find an embarrassed emoticon...) and pre-paycheck deductions will likely provide the support for the spine we sometimes lack.
Or we could take after-tax dollars and start the Roth IRA we really should do with Vanguard and known-and-low fees. (We don't even have a Roth in our portfolio - embarrassed emoticon again....)
Any thoughts or insights are appreciated.