Thursday, March 24, 2011

P & I: 403(b) participants hurt by unfair rules

I've been saying this for years, its nice to see others echo it.

The link above may not work, so some of the story is reprinted below, it begins:

While there has been significant convergence between 401(k) and 403(b) plans, 403(b) participants are still treated as second-class citizens when it comes to getting the best pricing on their savings for retirement.

401(k) plans are free to have the most appropriate and cost-effective investment structure — including mutual funds, annuities, commingled trusts and separate accounts. But not 403(b) plans.

Instead, because of anachronistic laws, 403(b) participants are limited to mutual funds and annuities — regardless of the size of the plan. This is unfair and counter to our social policy that seeks to encourage working individuals to contribute toward their retirement security.

Essentially arcane 403(b) rules limit participants ability to buy into cheaper investment options. In some plans I work with we can use Collective Investment Trusts to dramatically lower expenses or provide investment flexibility to participants - this cannot be done in 403(b)'s and leads to higher costs.

Of course, this is not the only issue with 403(b) plans, but its a start that Congress should get to work on now.

Scott Dauenhauer CFP, MSFP, AIF

Sunday, March 20, 2011

Ronald Reagan: Collective Bargaining = Freedom

Does this sound like the Republican party of today? For all the talk of how Reagan is the role model for the Republican party one wonders if they actually know what Reagan stood for. I rarely get political in this blog, however, the title is The Teachers Advocate and what has happened in Wisconsin is not only a blow for freedom, but an attack on people who are not the ones who have caused this economic depression (that would be government and Wall Street).

Reagan once said that he didn't leave the Democratic party, it left him. I wonder if he would say the same about the Republican party of today.

Scott Dauenhauer CFP, MSFP, AIF

Thursday, March 10, 2011

Two New TIAA White Papers

I have NOT had a chance to evaluate either of these papers. They are for your review only. When I do read, I will be sure to post my comments and thoughts.

Scott Dauenhauer CFP, MSFP, AIF

Reforming K-12 Educator Pensions: A Labor Perspective

Pensions and Public School Teacher Retirement

Monday, March 07, 2011

Crisis In DairyLand: Jon Stewart's take on Wall Street vs. Teachers

Who is more important Wall Street or Teachers?

I might have a unique perspective because I worked on Wall Street and am married to a teacher (full disclosure, I do consulting work for Teacher Retirement Plans). I'm here to tell you, it isn't Wall Street - but you'd never know it by the current discourse. Jon Stewart skewers some people who still cling to the notion that the average teacher is a part-time worker. My wife is a teacher and I can tell you - there is nothing part-time about her work.

Scott Dauenhauer, CFP, MSFP, AIF