Option, as in one. It looks like it might be teacher specific. Investment Options:  AXA EQUI-VEST variable annuity offers a wide range of investment options inside this contract. The account fees are high. the amount of the withdrawal charge deducted is equal to 5% of any contribution withdrawn attributable to contributions made within the current and five prior contract years, measured from the date of the withdrawal.”. Vanguard direct does not use their Admiral class funds, only their Investor class, while Fidelity does use their Premier class index funds. However, in general, variable annuities will add at least 1% in costs just for the M&E fee alone, not to mention the fees for the variable sub-accounts and income riders that can (and often are) added on. This offers a guaranteed rate of interest and a guarantee of principal. want a guarantee of principal, you should consider other investment options or products that provide So i am currently investing 15% of my salary in an AXA 403b sponsored by my work. AXA pays agents 1.5% to 2% commissions on every future dollar you contribute to your 403(b) annuity. For the investor who is age 65 and near the time of retirement, this might give you a layer of protection, but keep in mind that with this type of annuity, you’ll be paying over 2.5% annually just to get this benefit, and these fees negatively impact your return potential. A variable annuity is a type of deferred annuity, so there are two phases to your contract: the growth phase, and the income phase. Yet, over 50% of teachers are using them to save for retirement. Statistically speaking, the chances of meeting with an untimely death when the market is down AND when you’ve lost a portion of your contributions may be relatively low. Read prospectuses carefully before investing. The range was much narrower for large plans, with all-in costs ranging from 0.34% to 0.58%. AXA also reminds you that you should buy this annuity based on its features and benefits, so let’s take a look at those. Says AXA: “The Target Date Allocation Portfolios are not guaranteed at any time, including the target date.”. The SIO enables you to seek growth, up to a limit, with some downside protection. This includes school systems, hospitals and healthcare systems, and religious organizations. Investors have access to over 80 variable investment options including numerous equity and fixed income portfolios as well as various asset allocation and target date portfolios. Brokers generally receive an up-front commission when they sell a variable annuity. EQUI-VEST® is a deferred annuity contract issued by AXA Equitable. Its benefits include providing for the accumulation of retirement savings via tax-deferred growth. The sales agent may also tell you that these investments all benefit from tax-deferred growth. My goal is to make my review of annuities as impartial and objective as possible. Be sure to read carefully the marketing materials and prospectus, and if you don’t understand what you’re paying for, ask questions and receive a full disclosure before making a decision. What’s different about this annuity is that you remain invested in the stock market even while you are taking income withdrawals, which is why you have those additional fees. The problem is I've been looking for AXA's fees for the last hour and can't find any comprehensive information on management fees. by harpgirl555 » Mon Sep 17, 2018 8:21 pm, Post Our human resources lady said if I can get 5 people interested in Vanguard's plan, the district could try to add them. How do the fees in this particular annuity stack up against the fees inside other investment options? by Novine » Sat Feb 11, 2017 12:37 pm, Post A teacher who works 40 years and has a variable annuity with AXA, VALIC, Security Benefit, MetLife (just to name a few) can lose over $350,000 due to fees. For someone trying to save for a retirement, fees are an important consideration. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. When it comes between choosing between a 403b direct with Fidelity, direct with Vanguard or with Aspire self directed using either Vanguard or Fidelity, there is very little difference in costs. PlanConnect, LLC, (PlanConnect) provides recordkeeping and administration services for the 403(b)(7) group custodial account program. Re: Does anyone know what the AXA 403(b) fees are? You may also want to consider the relative features, benefits, and costs against or with any other investment that you may use in connection with your retirement. by Vanguard Fan 1367 » Mon Oct 21, 2019 8:59 am, Powered by phpBB® Forum Software © phpBB Limited. Does that mean you get to earn higher returns? If you have a Facebook account, one of the best ways to spread this message around is by “sharing” the post by using the Facebook icon below (it’s a blue square with a white F on it). They are sold only by prospectus. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value. During the growth phase, you can invest on a tax-deferred basis in one or more of AXA’s variable investment options or guaranteed interest options (GIO) or structured investment options (SIO). If you work in K-12 school and participate or plan to participate in a 403(b), there is a good chance you may get pitched the AXA EQUI-VEST variable annuity. Fees to the insurance company associated with risk protection, Fees associated with the investment funds inside the contract, $6,000/ year allowed for catch-up contributions if over 50. My own stupidity for not checking on that before I started investing. The percentage can be as high as 7% and never less than 2.5%.”. Personal Income Benefit Charge: This is the charge for Income Rider, an optional fee common for deferred annuities. I am a teacher. There are situations when the withdrawal charge is waived—for example, if you are confined to a nursing home for more than 90 days—and they no longer apply after the completion of 12 contract years. by runner9 » Sat Feb 11, 2017 12:47 pm, Post I think for Vanguard's 403b you do not have access to admiral shares. Underlying Portfolio Operating Expenses: This is another ongoing fee charged for the investments inside of the variable annuity. Variable annuities invest directly in the market, and as such, they can lose money just like stocks and mutual funds. This annuity does not offer that. That might sound good for someone who is nearing retirement and wanting to protect their nest egg. Tax-deferred Growth: One of this annuity’s main advantages is that the investments inside this product give you tax-deferred growth. But how good is the protection? by Duckie » Fri Feb 10, 2017 8:42 pm, Post A fee charged by an investment manager to manage an investment fund. None of the third parties referenced in this communication are affiliated with Warwick Valley Financial Advisors, Private Advisor Group or LPL Financial. “A hat tip to AXA, a provider of often expensive annuities, which you can read more about in one of Tara’s 403(b) articles from last year. 403(b) plans work almost identically to 401(k) plans. This fee is pretty standard for annuity contracts of this nature. Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it.". Before buying into an annuity, it’s important to understand how it works, what benefits it may provide, the cost to you in fees, and perhaps most importantly, the role it can help play in your overall retirement plan. The world of investments can be intimidating, but really it’s like any other shopping experience. This is a detailed post about a popular 403(b) annuity product, the AXA EQUI-VEST variable annuity. This pdf is only for an American Dental Association plan. So, even if you die, you’ve been paying that 1.25% M&E fee all this time to guarantee that your beneficiary (in this case, your spouse,) will still get all the money you paid into this account. [1], Income Rider Benefits: Personal Income Benefit. Thanks for reading this review. They won’t charge you the $30 fee if your account value is $25,000 or more. Personal Income Benefit investment options give you the ability to turn your retirement savings into an annual withdrawal benefit. I did that for you. My Action Steps And 403(b) Wise. Thanks again for reading, and as always, if you have any questions or would like to have your retirement portfolio reviewed, don’t hesitate to reach out and schedule your no-obligation consultation. If you have extra money to do 457 and 403b then go for it, but I'd start with Ohio 457 for each of you, fees will be lower than your current 403 be offering, hard to get any lower going forward. As I found out through researching AXA 403(b)’s, they are, in my opinion, one of the worst products on the market. AXA may waive this fee if your account value is higher than $50,000. Trying to get something introduced in our district that gave people the most options and made sense financially. This is on top of all the underlying expense fees. A modest $250 month investment with an 8% return over 35 years yields drastically different results depending on the 403(b) fees. It’s specifically designed for education and non-profit professionals, has the flexibility to adjust as your needs change and can help you turn your salary into a more comfortable retirement. by runner9 » Tue Feb 14, 2017 7:46 am, Post There are no up-front fees, no back-end fees and some of … During this phase, you may receive periodic payments for life or for a specified period of time. Any investment inside a 403(b), 401(k), IRA, or tax-qualified retirement plan has the potential to grow tax-deferred, even if they aren’t inside an annuity. by krow36 » Tue Sep 18, 2018 12:21 pm, Post If I try to add Axa as a straight Brokerage account I can login, but the account is reported as "Unknown Type". AXA Equitable Life Insurance Company is the #1 provider of retirement plans for K-12 schools, serving more than 820,000 participants in over 17,000 plans. Before purchasing any investment product, be sure to do your own due diligence and consult a properly licensed professional should you have specific questions as they relate to your individual circumstances. by tchasteen » Sat Feb 11, 2017 12:00 pm, Post There is no additional tax benefit to you when you buy this annuity inside a 403(b) or retirement plan. What if you know you need more money than that? Guarantees are based on the claims paying ability of the issuing insurance company. If you’re not familiar with variable annuity products and how they work, fees can be confusing to decipher. This means that if you move jobs you won’t need to worry about changing your MPO log in details. We only have one option: variable annuities with AXA. Find out more on the website. 2000 A.M. Best Company, Inc. 20 Apr. In fact, millions of people who save in 403(b) plans may be losing nearly $10 billion each year in excessive investment fees, according to a recent analysis by Aon, a retirement consultant. The contract also offers death benefit protection and, as discussed earlier, it offers a Personal Income Benefit for an additional cost. Detailed information about these fees can be found by digging through the prospectus. 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