"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote in message news:<ovpc00te215nr0lfkl8tq2e7dqbnp53cu8[at]4ax.com> ...
- quote -

OK I asked and this is what the guy at Asia pacific wrote (emailed):

"403b is not an employer plan, it is a supplemental retirement plan,
established by yourself, DOE helps you by offering payroll deduction
to
make it easier to save for yourself.
Your employer retirement plan is actually your Gov Guam retirement
plan.
Hope that answers your question.
Talk to you later."

He is referring to my defined benefit plan here.

So the question remains: Would it be better to give these guys pre-tax
deductions from my paycheck WITH 5.75 percent load OR simply invest my
after tax savings into a no-load fund. Let's assume I buy basically an
index fund in both cases. Which option is better?

Thanks, JMK

Look at the plan and see if it always partial rollovers while keeping the
contributions on going. This way you can move the pretax money out into an
IRA.

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
newsvpc00te215nr0lfkl8tq2e7dqbnp53cu8[at]4ax.com...
- quote -

- quote -

OK I understand you here but what about the advantage(?) of lowering
my taxable income each year I deduct $ from my paychecks (before tax
contributions) into the 403B. I'm a single guy with no dependents...

I'm told, though I really don't understand exactly how or why, that
this is SUCH a great advantage over simply taking one's after tax
savings and funding a 403B. Can you help me understand what is the
truth here?

Again, thanks; JMK

"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote in message news:<ovpc00te215nr0lfkl8tq2e7dqbnp53cu8[at]4ax.com> ...
- quote -

I'm pretty darn sure the guy at Asia Pacific said the 403B has a 5.57
percent load, but I've been wrong before so I'll check again tomorrow.

I don't think Gov Guam matches anything for a 403B...I'm under the
Government's "old" defined benefit plan. This has been replaced years
back with a defined contribution plan. They of course want me to
switch plans but I'm sticking to defined benefit.

I'm keeping my defined contribution...I believe it is the best plan
option. I was just thinking about adding another retirement plan...a
403B in addition to my defined benefit. My co-worker does this, he has
the defined benefit plus a 403B deducted from his paycheck. I just
worry that 5.75 percent load is too much to pay up front.

Thankyou very much for your advice; I'll answer those questions asap.

JMK

On Thu, 15 Jan 2004 04:03:22 CST, jkitchar[at]yahoo.com (John Kitchar)
wrote:


- quote -

It's unusual but not illegal. Usually, load funds waive their loads
when in an employer plan. So double check this with the local plan
administrator AND with Oppenheimer through their toll-free number.


- quote -


It depends on the investments. Some will produce enough to offset the
load and some will not - but no one knows in advance how any
investment will turn out. If the investments (in the plan and
outside the plan) are identical except that the inside investments
have a load, the outside will outperform the inside by the compounded
value of the load.

Get back after you confirm a load, and ask for non-qualified
alternatives. At that time tell us what, if any, matching
contribution your employer makes to the plan.


-HW "Skip" Weldon
Columbia, SC

Here is my situation--I thank anyone with sound advice for me.

I live on Guam USA...I work for the Government of Guam and I can
invest with Asia Pacific (Oppenheimer Funds) deducted from my
paychecks in a 403B retirement plan. I checked the fees today, and
discovered that they charge 5.75 percent up front.I believe this is my
only 403B option for deduction from Gov Guam payroll...through Asia
Pacific. Am I forced to use Asia Pacific for my 403B just because they
say they are the "only game" in town?

That sounds high to me...is it?

If it is too high, would I be better off just taking my after tax
savings and funding something like a no-load Vanguard online account?
Is a 403B with a 5.75 percent load better than simply investing
savings into a no load fund?

This would be additional income for me...I have 9 more years to go
before I can retire with the Government of Guam's defined benefit
plan.

Thanks for your time, JMK