Sunday, February 15, 2009
Thursday, December 11, 2008
Some Relief for 403(b) Sponsors
403(b) plan sponsors still have to comply, but they have some relief available to them.
ScottyD
ScottyD
Monday, October 13, 2008
NEA Valuebuilder Parent Downgraded (Security Benefit Life)
I can't stand Security Benefit Life or the product pushed on unsuspecting teachers (NEA Valuebuilder).....turns out the parent company wasn't so smart - buying into toxic CDO's that are giving them problems.
ScottyD
ScottyD
Monday, September 29, 2008
Nurturing The Nest Egg
School districts get new federal duties in overseeing workers’ 403(b) supplemental retirement accounts.
Thursday, September 18, 2008
Educators Eye Exposure to U.S. Financial Turmoil
Good article looking at exposure that educators have to the recent financial crisis. Check out 403bwise.com.
Friday, August 22, 2008
Clarifying 'Information Sharing Agreements'
Bob Toth of Baker & Daniels clarified Information Sharing Agreements.
Scott Dauenhauer, CFP, MSFP, AIF
Scott Dauenhauer, CFP, MSFP, AIF
Monday, May 19, 2008
Lawsuit Claims Fraud in Teacher Retirement Plan
Ouch, this one is going to really hurt VALIC. Of course, they changed their name to AIG Retirement......coincidence?
To be fair, I don't know all the facts in this case and won't pass judgement. But this is a good illustration of people using sales organization that are not held to a fiduciary duty to help with their finances......the organization is going to act in the organizations best interest.
ScottyD
www.meridianwealth.com
To be fair, I don't know all the facts in this case and won't pass judgement. But this is a good illustration of people using sales organization that are not held to a fiduciary duty to help with their finances......the organization is going to act in the organizations best interest.
ScottyD
www.meridianwealth.com
Tuesday, February 12, 2008
FREE Training - Learn how to tap the lucrative 403(b) Market
FREE Training - Learn how to tap the lucrative 403(b) Market
You've got to see this. This is the baloney that the agents who sell Equity Indexed Annuities respond to.
Pure drivel.
Scott Dauenhauer
You've got to see this. This is the baloney that the agents who sell Equity Indexed Annuities respond to.
Pure drivel.
Scott Dauenhauer
Monday, February 11, 2008
School workers find costlier choices in saving for retirement
The new regulations may be helping the IRS to track 403(b) plans better, but it is at the expense of teachers retirement. In Texas, even fewer low-cost providers are showing up on the approved statewide vendor list, meaning higher fees for participants and lower account balances at retirement. The new regs are having the short term affect of solidifying the high-cost, non-fiduciary based products as the ones that are offered. I hope this will change as the years pass.
ScottyD
Tuesday, January 29, 2008
Friday, January 25, 2008
Tuesday, December 18, 2007
Gatekeeper - New Regulations & Updates
Gatekeeper - New Regulations & Updates
Good synopsis of additional guidance and model plan language recently released by the IRS.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Good synopsis of additional guidance and model plan language recently released by the IRS.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Thursday, November 29, 2007
Changes made by IRS could impact school district staff
Changes made by IRS could impact school district staff
Interesting article about a school districts struggle with the new 403b regs.
Scottyd
Interesting article about a school districts struggle with the new 403b regs.
Scottyd
Monday, November 19, 2007
Swindler gets 9 years in prison for scamming Danville neighbors
Swindler gets 9 years in prison for scamming Danville neighbors
Bill Reimers, the now infamous con artist who ran Plan Compliance Group and a few investment advisory services is going to jail, though not until January.
Why this creep gets to spend Christmas outside of a jail cell and with his family is beyond me. Why he only gets nine years is also beyond me. This is a guy who stole millions of dollars from everyday people - people who couldn't afford to be swindled, many of which won't be able to live anything close to a retirement as they had once imagined.
I personally know some of the victims and it really makes me irate. I hope God will forgive him, I don't think many of his victims will.
The question remains whether crime actually pays - how many of you really believe he'll serve nine years? He'll be out probably within five and perhaps some of the money that he stole still hasn't been accounted for - who knows where it all went.
I for one would like to know the full story, perhaps Reimers can write a book while in prison - maybe even sell a few copies and provide a little restitution to those people he hurt so badly.
For now we will close this book and move on, learning a little something that will hopefully allow others not to be taken for a ride.
Scott Dauenhauer, CFP, MSFP, AIF
Bill Reimers, the now infamous con artist who ran Plan Compliance Group and a few investment advisory services is going to jail, though not until January.
Why this creep gets to spend Christmas outside of a jail cell and with his family is beyond me. Why he only gets nine years is also beyond me. This is a guy who stole millions of dollars from everyday people - people who couldn't afford to be swindled, many of which won't be able to live anything close to a retirement as they had once imagined.
I personally know some of the victims and it really makes me irate. I hope God will forgive him, I don't think many of his victims will.
The question remains whether crime actually pays - how many of you really believe he'll serve nine years? He'll be out probably within five and perhaps some of the money that he stole still hasn't been accounted for - who knows where it all went.
I for one would like to know the full story, perhaps Reimers can write a book while in prison - maybe even sell a few copies and provide a little restitution to those people he hurt so badly.
For now we will close this book and move on, learning a little something that will hopefully allow others not to be taken for a ride.
Scott Dauenhauer, CFP, MSFP, AIF
Monday, October 29, 2007
Teacher retirement plans more limited, confusing
Article by Pamela Yip on the new 403(b) regulations and how they'll affect normal, everyday teachers - it isn't looking good.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Thursday, October 25, 2007
Motley Fool Skewers AIG VALIC on Fees
Is Your Retirement Plan Robbing You Blind?
The Motley Fool's Tim Hanson skewers AIG VALIC in article about his wife's high fee account. Tim's wife is a school teacher who is forced to use AIG VALIC and her account experiences excessively high fees, you'll enjoy this read - its not just educational, its kind of funny to read and imagine Tim getting all worked up!
ScottyD
949-916-6238
www.meridianwealth.com
The Motley Fool's Tim Hanson skewers AIG VALIC in article about his wife's high fee account. Tim's wife is a school teacher who is forced to use AIG VALIC and her account experiences excessively high fees, you'll enjoy this read - its not just educational, its kind of funny to read and imagine Tim getting all worked up!
ScottyD
949-916-6238
www.meridianwealth.com
Wednesday, October 24, 2007
A LESSON IN STEALING PENSIONS
A LESSON IN STEALING PENSIONS
The New York Post joins the Los Angeles Times in ripping the NEA for continuing to sell the ridiculously expensive NEA Valuebuilder product to teachers (we like to refer to it as the ValueKiller).
My wife is an NEA member as are most of my clients - they want their union to stand up for them, not use them.
When will the NEA begin treating the 403(b) and 457(b) like they do healthcare and advocate for a better system instead of profiting from the current one.
Luckily many state affiliates do not follow the NEA lead and working to better the 403(b), cheers to those affiliates.
ScottyD
www.meridianwealth.com
949-916-6238
The New York Post joins the Los Angeles Times in ripping the NEA for continuing to sell the ridiculously expensive NEA Valuebuilder product to teachers (we like to refer to it as the ValueKiller).
My wife is an NEA member as are most of my clients - they want their union to stand up for them, not use them.
When will the NEA begin treating the 403(b) and 457(b) like they do healthcare and advocate for a better system instead of profiting from the current one.
Luckily many state affiliates do not follow the NEA lead and working to better the 403(b), cheers to those affiliates.
ScottyD
www.meridianwealth.com
949-916-6238
Wednesday, October 17, 2007
AIG VALIC Launches New Low-Cost, No-Load Mutual Fund Platform in 403(b) Market
AIGVALIC, the largest purveyor of 403(b) products to k-12 school districts has launched a "no-load" product called the "Profile Retirement Program". Interestingly enough the program is not to be easily found, or found at all on their website and the press release that appears above on BusinessWire is not found on their Press Room section of their website......wierd. Is it possible that this program is simply a ploy to answer the critics that their products are too expensive? They can now say, "but we have a no-load product". This isn't a serious attempt to help employees lower costs, it appears to just be PR - otherwise why an announcement, but no details.
The product is available through 403(b) Compare, but the disclosure is not exactly eye-opening either as they give a range of fees, not the exact fee. The underyling investment options appear to be priced around .70%, with the S & P fund priced at .36%. However, AIGVALIC can charge a wrap fee of up to 1.00% and up to an additional .65% if the "Guided Portfolio" is chosen. Doesn't sound low-cost, but at least it's no-load!
I'll give you more information if and when AIGVALIC decides to distribute it.
In a parallel story, the NEA has come out with their own no-load product (about five years after saying they would do so). The name of the product is DirectInvest Online and is also a difficult product to find out information on. It is not registered on 403bCompare.com and thus not available in California. I had to type in "directinvest" in the search box at www.neamb.com and then click on a press release, which then had a link to the special website. If you are looking for this product to be marketed on the "Investments" section you will not find it. The website is located here. Amazingly there is little info on this site unless you really dig - for example, the fact sheets for each investment option do not list the expense ratio of the fund.....how difficult would that be to add to a sheet that is supposed to give THE FACTS?
There are four index funds and the Target Date's are done by T. Rowe Price, a good company.
The main question an investor must ask themselves is why they would choose AIGVALIC or NEA Valuebuilder for their 403(b)? Neither product is that low in cost, though they are no-load and there are much better choices out there for individuals if they want to go direct. These two products might be alluring for those individuals in school districts that have a limited provider list and offer the high cost VALIC and Valuebuilder products - through those payroll slots you should be able to access these lower cost, no-load products and thus have at least a decent option.....that is of course if you can find out any information on them.
Scott Dauenhauer, CFP, MSFP, AIF
The product is available through 403(b) Compare, but the disclosure is not exactly eye-opening either as they give a range of fees, not the exact fee. The underyling investment options appear to be priced around .70%, with the S & P fund priced at .36%. However, AIGVALIC can charge a wrap fee of up to 1.00% and up to an additional .65% if the "Guided Portfolio" is chosen. Doesn't sound low-cost, but at least it's no-load!
I'll give you more information if and when AIGVALIC decides to distribute it.
In a parallel story, the NEA has come out with their own no-load product (about five years after saying they would do so). The name of the product is DirectInvest Online and is also a difficult product to find out information on. It is not registered on 403bCompare.com and thus not available in California. I had to type in "directinvest" in the search box at www.neamb.com and then click on a press release, which then had a link to the special website. If you are looking for this product to be marketed on the "Investments" section you will not find it. The website is located here. Amazingly there is little info on this site unless you really dig - for example, the fact sheets for each investment option do not list the expense ratio of the fund.....how difficult would that be to add to a sheet that is supposed to give THE FACTS?
There are four index funds and the Target Date's are done by T. Rowe Price, a good company.
The main question an investor must ask themselves is why they would choose AIGVALIC or NEA Valuebuilder for their 403(b)? Neither product is that low in cost, though they are no-load and there are much better choices out there for individuals if they want to go direct. These two products might be alluring for those individuals in school districts that have a limited provider list and offer the high cost VALIC and Valuebuilder products - through those payroll slots you should be able to access these lower cost, no-load products and thus have at least a decent option.....that is of course if you can find out any information on them.
Scott Dauenhauer, CFP, MSFP, AIF
The Free Fallacy - Why Free 403(b) TPA's Are A Bad Idea
This is a piece I wrote that I believe is one of the most important papers I've written since "Does The NEA Practice What It Preaches" back in 2001. This paper, like the last is an expose on the industry that is attempting to serve school districts across the United States in relation to their compliance for 403(b) retirement plans. A bevy of Third Party Administrators of 403(b) Compliance have popped up to offer "Free" compliance services, or low-priced compliance service - but they are all driven by product sales.
The compliance piece is simply a way to get to school employees to sell them product, not a comprehensive plan to keep them in compliance.
My paper examines the true costs of these "Free" TPA's and concludes that they are a bad idea and probably a lawsuit waiting to happen.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
The compliance piece is simply a way to get to school employees to sell them product, not a comprehensive plan to keep them in compliance.
My paper examines the true costs of these "Free" TPA's and concludes that they are a bad idea and probably a lawsuit waiting to happen.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
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