Author Topic: Teacher 403(b) Contributions  (Read 825 times)

codingjoser

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Teacher 403(b) Contributions
« on: January 25, 2019, 07:03:03 PM »
Hi Guys and Gals,

I just recently opened up a 403(b) through my district and have my money invested the following way:

19.72% in AmFds EuroPacfc Gr R5
15.03% in Vngrd SmCap Gr Indx Adml
14.63% in TRowerPr MdCap Val R
50.62% in Vngrd 500 Index Fd AS

I had one of the financial advisors at the credit union set this all up for me, but haven't made much money in the last 6 months(in fact I've lost money). I am going to be increasing my contributions to the max (19k per year), but am unsure if my money is in the right funds. There are hundreds of funds and bonds I can choose from, but I don't know what to pick and how much percent to put where. Can anyone recommend a good book/article that they've read to help them choose what funds and bonds to place their money in?

Thank you for your time

JGS1980

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Re: Teacher 403(b) Contributions
« Reply #1 on: January 25, 2019, 07:53:12 PM »
Read J Collins “Stock Series” online. Well worth your time.

I suspect you will eventually decide to put 100% in the Vanguard S&P Index Fund

WhiteTrashCash

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Re: Teacher 403(b) Contributions
« Reply #2 on: January 25, 2019, 08:37:09 PM »
Teacher 403(b) are notorious for high fees. It is going to be very hard to save for retirement that way especially compared to the low fees that private sector workers typically pay for a 401(k). Have you looked into opening a Roth IRA with Vanguard directly? At least that way, you could invest $6000 a year with minimal fees.

Kott308

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Re: Teacher 403(b) Contributions
« Reply #3 on: January 25, 2019, 08:53:38 PM »
Teacher 403(b) are notorious for high fees. It is going to be very hard to save for retirement that way especially compared to the low fees that private sector workers typically pay for a 401(k). Have you looked into opening a Roth IRA with Vanguard directly? At least that way, you could invest $6000 a year with minimal fees.

^^^^Agree x 100

Does your district have a vendor list? I was able to open my 403(b) through Vanguard which gives me access to all of their funds and I only get dinged an extra $5.00/year because Vanguard farms out their 403(b) oversight. Plus, it shows up on the same dash as my Roth IRA and rollover.

 If your district is anything like mine, nobody in HR knows anything about the different vendors or is very helpful in setting these things up. Everybody seems content to place their retirement in the hands of our state's (NJ) grossly underfunded pension.

codingjoser

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Re: Teacher 403(b) Contributions
« Reply #4 on: January 25, 2019, 09:42:29 PM »
These are my fees and expenses:


AmFds EuroPacfc Gr R5

                                                               Annual Operating Expense
Net Expense Ratio   AMC/Net Asset Fee   Percentage%   Per $1,000   

0.53%                  0.65%                   1.18%           $11.80   

Shareholder-Type Fees

The fund house enforces a trade restriction. If a participant exchanges out $5,000.00 or more, they are blocked from exchanging $5,000.00 or more back into the fund for 30 days. Only one roundtrip exchange is allowed in 30 days. 



TRowePr MdCap Val R
                                                                Annual Operating Expense
Net Expense Ratio   AMC/Net Asset Fee   Percentage%   Per $1,000   
1.30%                   0.25%                   1.55%           $15.50   

Shareholder-Type Fees
The fund house enforces a trade restriction. If a participant exchanges out any amount of money, they are blocked from exchanging back into the fund for 30 days. 


Vngrd SmCap Gr Indx Adml

                                                                Annual Operating Expense
Net Expense Ratio   AMC/Net Asset Fee   Percentage%   Per $1,000   
0.07%                   0.65%                   0.72%           $7.20   

Vngrd 500 Index Fd AS
0.04%                   0.65%                  0.69%           $6.90   


For Mid-cap I do have the vanguard option: Vngrd Mid-Cap Idx Fd AS

I see that I need to change my mid-cap immediately. Kott308 my district doesn't have a clue, but the site 403(b)compare.com does list vanguard as a vendor. However, through my nationwide account I have access to around 60 vanguard stocks and bonds. I am also in the process of opening a 457(b) through my nationwide representative. I've read posts on this site in which teachers suggest that you do open 457(b) and 403(b) and contribute, my 457(b) is going to have access to the same stocks and I have many vanguard stocks to chose from. Should I still consider closing 403(b) account and going through vanguard directly?

I am looking to invest a huge part of my income this decade and really don't want to screw this up.

Any advice you all have is greatly appreciated.
Thank you
« Last Edit: January 25, 2019, 09:57:22 PM by codingjoser »

Gronnie

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Re: Teacher 403(b) Contributions
« Reply #5 on: January 25, 2019, 10:13:04 PM »
Those fucking thieves. They are charging fees 15x more or greater as Vanguard charges just to do some bookkeeping. Disgraceful.