How to get non-annuity 403Bs in workplace?

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fortfun
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How to get non-annuity 403Bs in workplace?

Post by fortfun » Wed May 15, 2019 2:07 pm

DWs workplace has wonderful, non-annuity, options in her 403b. My workplace has only terrible, annuity based (insurance companies), funds in its workplace. Is this due to only insurance companies going to the bother of completing the 403b RFP? We also have a great 401k and good 457 plan available but these 403b insurance salesman show up to our staff lounges pedaling their annuities and many of my colleagues don't know any better. Sadly, no 401k or 457 salesmen show up... Some of my colleagues have a lot of their retirement money tied up in these plans with horrible ERs, annuity management fees, early withdrawal penalties, etc. How can I get my workplace to get a non-annuity based 403b like DWs? I doubt Fidelity is going to fill out an RFP for smallish amount they would stand to gain.

redbird24
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Re: How to get non-annuity 403Bs in workplace?

Post by redbird24 » Wed May 15, 2019 2:42 pm

I've dealt with the same situation as well. As a teacher, I have a 403(b) as well, and have learned a lot about the 403(b) setup, especially through this forum. I have since switched my 403(b) to Aspire, which offers access to Vanguard and Fidelity funds with a $40 annual fee and 15 basis points going to Aspire. I had to help our district office fill out the paperwork so setup the plan.

In my experience, I have learned you can't force them out of the 403(b) and force them to learn about the high level of fees. If people ask me, I will give them my opinion with my reasoning. People have to learn on their own when it becomes important to them. You can share things on social media about the high level of fees, but it doesn't really mean that much to most people. For people on this forum it matters, but not too many people outside of it, they just don't care.

I too wish everyone would understand how high fees really do eat away at a nestegg, and I do try to do my part in teaching my students about fees in my Consumer Ed/Personal Finance class.

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fortfun
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Re: How to get non-annuity 403Bs in workplace?

Post by fortfun » Wed May 15, 2019 2:56 pm

redbird24 wrote:
Wed May 15, 2019 2:42 pm
I've dealt with the same situation as well. As a teacher, I have a 403(b) as well, and have learned a lot about the 403(b) setup, especially through this forum. I have since switched my 403(b) to Aspire, which offers access to Vanguard and Fidelity funds with a $40 annual fee and 15 basis points going to Aspire. I had to help our district office fill out the paperwork so setup the plan.

In my experience, I have learned you can't force them out of the 403(b) and force them to learn about the high level of fees. If people ask me, I will give them my opinion with my reasoning. People have to learn on their own when it becomes important to them. You can share things on social media about the high level of fees, but it doesn't really mean that much to most people. For people on this forum it matters, but not too many people outside of it, they just don't care.

I too wish everyone would understand how high fees really do eat away at a nestegg, and I do try to do my part in teaching my students about fees in my Consumer Ed/Personal Finance class.
How hard was it for you to convince central office to switch to Aspire? I have a feeling it will be an uphill battle in my district. Good for you!

redbird24
Posts: 7
Joined: Fri Mar 22, 2019 2:55 pm

Re: How to get non-annuity 403Bs in workplace?

Post by redbird24 » Wed May 15, 2019 3:06 pm

fortfun wrote:
Wed May 15, 2019 2:56 pm
redbird24 wrote:
Wed May 15, 2019 2:42 pm
I've dealt with the same situation as well. As a teacher, I have a 403(b) as well, and have learned a lot about the 403(b) setup, especially through this forum. I have since switched my 403(b) to Aspire, which offers access to Vanguard and Fidelity funds with a $40 annual fee and 15 basis points going to Aspire. I had to help our district office fill out the paperwork so setup the plan.

In my experience, I have learned you can't force them out of the 403(b) and force them to learn about the high level of fees. If people ask me, I will give them my opinion with my reasoning. People have to learn on their own when it becomes important to them. You can share things on social media about the high level of fees, but it doesn't really mean that much to most people. For people on this forum it matters, but not too many people outside of it, they just don't care.

I too wish everyone would understand how high fees really do eat away at a nestegg, and I do try to do my part in teaching my students about fees in my Consumer Ed/Personal Finance class.
How hard was it for you to convince central office to switch to Aspire? I have a feeling it will be an uphill battle in my district. Good for you!
It wasn't necessarily a switch, more of an additional option. We've had another teacher switch to it as well after he realized how bad he was getting hit by the fees.

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