UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: BillEuclid Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76882  
Subject: Re: 403b vs. variable annuity Date: 11/21/1998 2:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
From what I have heard, the primary difference is that VALIC will charge participants 1% of total assets each and every year for the rest of the life of the plan, whereas I believe that Fidelity does not.

The next effect is that you can expect your total accumulation to be roughly 20% worse when you retire in 20-some years, than if the employer had stayed with Fidelity.

So why did they change? Quite possibly because VALIC bribed the employer (legally, in the technical sense of offering to give the employer a portion of that 1% excess surcharge, thereby making the employer's costs substantially less than if they had stayed with Fidelity).

If so, then clearly, the employer does not have the employee's best interests at heart.

You can check the veracity of the above by asking how a 100% investment in an S&P500 index fund would have done over the past few years, and compare that result with Fidelity's or Vanguard's. That would give you a comparison figure -- perhaps it will show I'm wrong (because maybe their policy is different from what I've heard).

Bill
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Buffett's Biggest Mistake
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement