Thank you for the kind words. Happy to help.

Hi Ngoc and thank you for the comment and questions. CalSTRS invests the funds as most other pension funds. They pool everyone's money together and invest in a variety of different securities and implement different strategies according the actuarial needs of the fund. I believe some of CalSTRS benefits can be rolled over but I would consult with a CalSTRS representative to be sure.

Thank you for the kind words. Be sure to get my 2020 Financial Planning Cheat Sheet located here www.theastuteadvisor.com/2020cheatsheet

Thanks for the question. I'm suprised they allocate it among separate custodians. That definitely makes it difficult to keep track of. I would consider using Fidelity. TIAA has some funds that have major time commitments and restrictions. For example, I've had several clients invest in the TIAA guaranteed portfolio. What they didn't realize is that you can only withdraw a certain percentage of it each year. One client invested in it 10 years ago and left the employer a few years back. When we contacted TIAA to roll it into an IRA, they informed us that you could only access a portion of it over the coarse of 9 years. I've seen this several times. I don't think TIAA is adequately explaining this to 403b participants. I don't even think they should offer something like that. I hope this helps. If it does, consider checking out my 2021 Financial Planning Cheat Sheet www.theastuteadvisor.com/2021cheatsheet

@@davidn.waldropcfp2260 Wow! Thank you so much for taking the time to reply with such detail. Yeah, I was blown away when we logged on at first and it was spread out like that. I’m so glad to hear you say this because - late last night - I decided that we were going to have to be fully with Fidelity. So this gives me peace that I made the right decision. And yes, I agree - the idea of having it separated out seems way too much to handle. Again, thank you for taking the time to reply - I really appreciate it. I’ll check out that link you sent right now.

Hi and thank you for the question. In general, stocks has a positve return last year. However, to be sure, you should review your account statements. It's a little concerning to me that you were only offered one plan. Most school districts offer multiple investment providers to choose from. If you'd like me to look into your situation in more detail, we should schedule a call to review. You can reach me via my website at www.theastuteadvisor.com

Thanks so much and hope you found it helpful!

Hi Joji, if the investment lists a 5 letter ticker symbol after the full name of the security, likely a mutual fund, if index mutual fund, will likely say "index" in the name of the fund. If annuity, they will often be referred to as "sub account." Ultimately, to be sure, you will need to read the detailed description of the investment or consult a plan representative.

If you have a long term time horizon (plan to be invested for more than 10 years) and are comfortable seeing the investment fluctuate by +20% or -20% and possibly more, it may be appropriate for you. Everyone has a different time horizon, risk tolerance, and investment objective so it's impossible for me (or any advisor) to say without knowing more about you. If you'd like to book a one hour consulting call with me, send me an email. If you're new to investing, a consulting call with me will help you get on the right track. You can email me through my website www.theastuteadvisor.com

403b is the way to go

I think you mean VTSAX? That's what I invest in. Solid option in my opinion.

Hi Norma, thanks for the question and apologies for the delayed response. Unfortunately, i don't have enough information to completely answer the question. However, in general, the goal should be that you put as much as you can into the 403(b) or other type of retirement account as possible. Be careful though. If the investment product is an annuity or some other account with high fees and restrictions, you might be just fine staying away from the the 403(b) and invest in an IRA instead (depending on how much you contribute).

You should contribute the maximum allowed.

I'm sorry to hear this. I have not encountered a scenario like this and am hesitant to weigh in. Please let us know how it develops.

@@davidn.waldropcfp2260 Let's say someone on your team screwed up and did this. Wold it be "mistakes like this happen from time to time and we have ways of correcting it that are not a big deal" or would it be "o crap hopefully our little teacher client doesn't get a tax attorney and sue us because we messed up big time"? Can you give me a reaction on that much?

@@royburnacoven3559 I think it would be more like the former. Most things can be corrected. However, that doesn't mean the correction won't have an adverse effect on you. I would make sure that if they are acknowledging it was their error, they need to cover the costs associated with fixing it

Apologies for the delayed reply. VALIC is a major player in the 403(b) annuity and variable annuity market and has been around for many years. I'm not endorsing them as a company nor any of its brokers or employees. Ultimately, you would want to consult with an independent advisor to review any products your are considering, regardless of the company.

@@davidn.waldropcfp2260 thank you. Sorry I never saw your reply. I was just revisiting this video. I had valic and rolled over to vanguard.

Very true Rich. Thanks for your input!

I’m glad you found it helpful. You should also check out my 2020 Financial Planning Cheat Sheet (linked below). It’s been updated for the new retirement rules taking effect this year. www.theastuteadvisor.com/2020cheatsheet

Do you have any plans for the impeding Apocalypse?

Hi Leo, Thank you for contributing to the conversation. You can have multiple Roth IRAs and contribute to all of them so long as you don't go over the IRS contribution limit for that year. However, while you can do it, contributing to multiple Roth IRAs isn't the best way to go about it. Be sure to get my 2020 Financial Planning Cheat Sheet located here www.theastuteadvisor.com/2020cheatsheet

I'm not a teacher. I’m so sorry I’m seeing this just now. I wasn’t getting the notifications for some reason. I’ve got a lot to reply to. If you download my 2023 Financial Planning Cheat Sheet, I will be able to respond directly via email. Here’s the link: www.theastuteadvisor.com/2023cheatsheetLP

Hi Tommy, you would likely benefit from a portfolio review by a professional. They can make sure your investment objective, time horizon, and risk tolerance are matched up with the fund you're invested in. Just be sure to work with a CFP who is independent and not trying to sell you anything. In other words, a fiduciary advisor. Good luck