403(b)

Teacher Money Matters

It’s time for teachers to wrest control of their money from financial predators. We’re here to help. Introducing Teacher Money Matters: Our new Facebook page and group explicitly designed to meet the financial needs of teachers everywhere. Our goal is to empower teachers. It’s nearly impossible to get unbiased answers to their personal finance questions…

It’s Time To Call 911 On 7702 “Retirement Plans”

Why are some insurance salespeople making up retirement plans???? It’s not too hard to figure out the answer. Can anyone say “Huge Commissions.” Collecting 70%-100% of hefty first-year premiums provides the incentive to hock this plan.  For the uninitiated, there’s a subsection of The Internal Revenue Code named 7702. The code explains the tax implications…

Picking Up Pension Nickels In Front Of A Steamroller

Figuring out how to take a pension can be a life or death decision. Mistakes cost millions of possible future dollars. Many New York school districts are tendering teachers early retirement packages. The pandemic tossed the state’s finances into chaos. A way to save money is by offering the highest-paid teachers financial incentives to retire….

How to Go From Retirement’s Outhouse to Its Penthouse

Some days you’re the dog and some days you’re the fire hydrant. Take a guess which category public school teacher’s Non-ERISA 403(b) retirement plans fall under? Help is on the way. Our 403(b) group is collaborating on a unique pilot project with Vanguard, the titan of low-cost, investor-friendly investing. Our joint mission is to transform…

Hidden Investment Costs Are The Most Expensive

Nothing in life is free. The last place to locate this fairy tale is in an insurance company. Recently, we called a large insurer about the surrender fees in a Science teacher’s 403(b) variable annuity. Besides the usual Ground Hog’s day responses, we received this beauty. Dina inquired about the overall costs of this godforsaken…

The Future is Now

It has been almost two years since Tony and I formally embarked on a mission to educate and free teachers from expensive and inappropriate investments in their 403(b) accounts.  Our main message has been buyer beware. A teacher, Chase Malia, has taken it a giant leap forward – proposing Resolution #41 to his union, NYSUT,…

Even A CFA® Can’t Make Sense of Teachers’ 403(b)s

“Make intimidating things painless. Make complicated things simple. Make boring things exciting.” – Morgan Housel This brilliantly describes the attributes of great businesses. The woeful world of public school teachers’ 403(b) retirement plans strikes out on all three of these concepts. It is unfathomable that a new kindergarten teacher will have mind-numbing terms like this thrown at her…

The Worst of Human Nature

   No fun; these two words perfectly describe the ordeal public school teachers endure when they attempt to open up a 403(b) retirement account. On January 14, 1978 in San Francisco, California, the Sex Pistols performed their last concert at the Winterland Theater. Before departing, the group’s leader, Johnny Rotten sneered at the crowd, “Ever get the feeling you’ve been…

Exit Light, Enter Night — We’re Off to 403(b) Land

“Sleep with one eye open gripping your pillow tight.”– Metallica Ruthless predators in disguise are raiding the retirement accounts of public school teachers. Just like wildlife lurking in the rain forest on the banks of the Amazon River, they manipulate their environment to consume unsuspecting prey. In the words of some other famous head-bangers, welcome to…

Conflicted Salespeople Are Ruining a Great Tax Shelter

Here is my latest story for my friends Scott and Dan over at 403bwise. Teachers have some amazing ways to save on their taxes. Unfortunately, their biggest tax shelter, their 403(b) plan, is often riddled with high-cost products sold by conflicted financial salespeople. Imagine a world where teachers could lower their taxes and also have an awesome…