1. Teach and Retire Wealthy
403(b)’s: Building for Retirement!
Things you should know!

2. Who Am I and Why Am I Here?

3. NYSUT 403b History Summary
New York State United Teachers or NYSUT has 500,000 members
620 School Districts
1989 NYSUT endorsed two arrangements
ING Life Insurance and Annuity Company — the Opportunity Plus variable annuity
Opportunity Independence 403(b)(7) custodial account.

4. 403(b)’s: Somethings you need to know to make them work for you!
When should you start investing?
How do fees affect your returns?
How to you find hidden fees?
What you can do to get better investment options?
How can you better educate yourself about 403(b)s?

5. Benefit of Saving Early
The chart below from JP Morgan shows how one saver (Susan) who invests for only 10 years early in her career, ends up with more wealth than another saver (Bill), who saves for 30 years later in life.
By starting early, Susan was able to better take advantage of compound interest.
Chris, the third saver profiled, is the ideal: He contributed steadily for his entire career.

6. Benefit of Saving Early
This chart by Business Insider's Andy Kiersz also emphasizes the impact of compound interest, and the importance of starting early. Saver Emily, represented by the blue line, starts saving the exact same amount as Dave (the red line), but begins 10 years earlier. Ultimately, she contributes around 33% more than Dave over the course of her career, but ends up with almost twice as much wealth as he does.

7. Benefit of Saving Early
Compound interest can get you pretty far. In fact, Business Insider calculated — based on your current age and a 6% return rate — how much you need to be saving per month in order to reach $1 million by age 65. You can also see the calculations based on different rates of return.

8. Fees and How They Affect Your 403(b)
Expenses have a direct and dramatic impact on your earnings.
You can't control the market but you can control how much you pay for your investments.
The difference of just a few extra percentage points in fees may seem minimal, but over time this seemingly minimal difference can steadily eat into your overall earnings, costing you thousands of dollars.

9. Fees That Can Affect Your 403(b) Returns
12b-1 Fee
This charge generally allows distributors to compensate broker/dealers for selling their funds, with a payment to the representative who sold the fund. It also can be a charge to cover marketing and distribution costs of the investment.
Custodial Fee The charge for safekeeping or physically holding the securities in the fund.
Expense Deductions Charges for investment management, administration and distribution services.
Management Fee Also called the investment advisory fee, this represents the company's cost for managing the money in the fund.

10. Fees That Can Affect Your 403(b) Returns (con’t)
Mortality and Expense Fee (M&E) This applies to some types of annuities and covers insurance related costs.
Transfer Fee This is an amount charged by a fund to transfer either within the fund family or to another company.
Wrap Account Fee Charged by some types of funds for fund management, this is an annual percentage of the investor's assets in the account.
Withdrawal Charge (a.k.a. Surrender Charge) A fee charged by some annuities and funds when an investor takes money out of his or her account.

11. How Fees Steadily Eat Away at Your 403(b)
Value after 35 years, assuming $250 contributed monthly with an 8% average annual return (source: Meridian Wealth Management)

12. Finding Hidden Fees
By using this carefully written , your provider can’t evade or avoid the truth.  Cut, paste and modify the text below and  it to your current plan provider. You can likely find your provider’s on your quarterly statement.
Subject: Inquiry about the fees deducted from my retirement accounts
 Dear (provider name):
 I’ve recently learned that the fees taken out of my Teacher retirement plan (403B) and other retirement accounts can have a big impact on the amount that I will have to fund my retirement. Maybe I missed something in all of the paperwork, but as your client would you please provide a detailed description of any fees that are paid from my accounts? This might include fees paid for fund management, trading commissions, custodial or investment advisory services. Please show me any compensation that you or your firm receives from 12b-1 fees, loads or any other fees from funds, which are in any of my accounts. I understand that some fees are hard to see, for example the fees for funds inside of target date funds and other funds that include other funds. I wish to know any and all fees whether I’ve listed them here or not. 
Thanks so much, 
Your Name

13. John Oliver Explains Retirement Plans

14. Recommended Books

15. 3rd Party Provider

16. 403b Wise Website and Podcast

17. The Millionaire Teacher Podcast

18. Late Bloomer Millionaires

19. New York Times Articles

20. Motley Fool Article

21. Kiplinger Article

22. Bruce McNutt Website

23. Vanguard: Minimize Cost

24. Were do you start? https://www.403bcompare.com/

25. NY Times

26. 3rd Party Provider

27. Aspire

28. Aspire Providers
Your total asset under management fee of 0.85% includes the 0.40% that Ritholtz receives.

29. https://personal. vanguard. com/us/funds/vanguard/compare

30. Vanguard Compare Funds: Fees and Minimums

31. Vanguard Compare Funds: Ten Largest Holdings

32. Teach and Retire Wealthy
Question?
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Door Prizes

33. Teach and Retire Wealthy
Question?
Thank you for coming!
Door Prizes