Higher Ed 403b: How the administration picks your core funds?

 

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
Contact Information: ncarmany@thewatermarkgrp.com, 317-805-0840

Topics:
1. Participant responsibilities
2. Relevant investment criteria
3. Discussion of criteria

Source:

http://www.purdue.edu/hr/Benefits/currentEmployees/retirement/retirementInvestmentPolicy.html

 

403(b) Letter to the Editor

I recently sent a letter to the editor at the Purdue University newspaper, The Exponent.  I also wanted to share it here.

To the editor:

Protecting a workers retirement funds and portfolios from unethical acts will always be a noble cause.  The Department of Labor accomplished this with their newest rule where financial professionals need to act in a fiduciary capacity by putting the consumers’ needs first.  The problem has been that most consumers assumed this has always been the case when in fact the financial professional may have recommended a product based on it being  a suitable option (not necessarily the best) paying a high commission.

The new fiduciary rules cover accounts like the 401(k) and IRA.  The new rule does fall short for those accounts (403(b) plans and non-IRA retail investing accounts) outside of the Department of Labor’s jurisdiction.  The result will be a smaller pool of buyers for those advisors who sell products based on the old suitability standard.  403(b) plans will be at the center of the smaller pool leaving some consumers unprotected.

Future teachers or those just entering their career in k-12 schools need to exercise extra caution with whom they discuss their 403(b.)  Planning with a fiduciary practicing advisor will reduce stress, and will help in making those financial decisions when an unexpected event happens.

I can only hope the Securities and Exchange Commission creates a similar rule for those accounts not covered under the new ERISA standard.  In the meantime, here’s how 403(b) participants may protect themselves:

  1. Deal with a financial professional who automatically puts your interest first, like someone with a Certified Financial Profession designation or willing to sign a fiduciary pledge.
  2. When reviewing your 403(b) ask for a list of internal fees, expenses, and any potential commissions earned. Some annuities contain total fees up to 3%.
  3. Check your adviser’s history on brokercheck.com for any disciplinary actions.

Higher Ed 403b Service Levels

 

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
Contact Information: ncarmany@thewatermarkgrp.com, 317-805-0840

Service Levels
1. Do it yourself
2. Plan Sponsor
3. Independent Advisor

Investing Lesson from Isaac Newton Part 2

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
Contact Information: ncarmany@thewatermarkgrp.com, 317-805-0840

Here is the video for part 1:


TOPICS
1. Isaac Newton
2. Stock bubbles
3. Cognitive Dissonance

 

 

 

 

 

Purdue: Road to Retirement and Social Security Changes

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
Contact Information: ncarmany@thewatermarkgrp.com, 317-805-0840

Article Outlining the Social Security Changes

http://www.forbes.com/sites/investor/2016/01/31/social-security-changes-you-need-to-know-about-before-its-too-late/#7e1f9e9f6343
Road to Retirement Workshops

http://www.purdue.edu/hr/Benefits/currentEmployees/retirement/roadToRetirement.html

http://www.purdue.edu/hr/Benefits/currentEmployees/retirement/retirementReadiness.html

http://www.purdue.edu/newsroom/purduetoday/releases/2016/Q1/purdue-benefits-announces-spring-date-for-road-to-retirement.html

 

Higher Ed Retirement Plan Investment Options and Insights

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
Contact Information: ncarmany@thewatermarkgrp.com, 317-805-0840

TOPICS
1. Fidelity Higher Ed Faculty Study.
a. https://workplace.fidelity.com/sites/default/files/Fidelity%20Higher%20Ed%20Faculty%2055_Exec%20Summary_FINAL_101413.pdf
2. Global market caps
3. Lopsided nature of employer retirement plans

Sources:
http://www.businessinsider.com/map-countries-scaled-to-equity-market-capitalization-2015-8
http://www.nuveen.com/Home/Documents/Default.aspx?fileId=56087

Creating Tax Diversification with Tax Buckets

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
ncarmany@thewatermarkgrp.com
317805-0840
TOPICS:
1. Two Thanksgiving Holidays per year
2. Benefits of tax diversification
2. How tax buckets work
3. Employee and business own tax diversification

 

Portfolio Income Buckets

 

I help Purdue faculty make the most of their benefits and 403(b) retirement plan.
ncarmany@thewatermarkgrp.com
317-805-0840

TOPICS:

How to generate income from your portfolio.

Asset Allocation