403bwise is a 501(c)(3) nonprofit organization.

The K-12 403(b) is broken.
Together we can fix it.
Dan's Blog

K-12 403(b) Fees are Bigger in Texas ⬆️

July 27, 2020

There are so many reasons we love the 403bwise Facebook Group. The direct messages of thanks are probably the most rewarding. They so encapsulate the core issues around the K-12 403(b). Here’s one from a Texas K-12 teacher that came over the weekend.  

I do love this wonderful group. You guys have helped me understand the 403b so much better. About Security Benefit, I believe their rep came to my school and I signed up with him without really knowing what I was doing and how the 403b worked. He was very attentive in the beginning but after the first year, not so much. I transferred all the money I had with them to buy back some of the years that I withdrew from the Texas Retirement System. BTW, withdrawing that money from TRS was a huge mistake and it cost me dearly.

Here’s a post on the Group home page, also from this weekend.

It should surprising exactly no one familiar with the K-12 403(b) plan that if you work at MD Anderson Cancer Center you have some excellent, low-cost options.

Here's my podcast partner Scott Dauenahuer's response to the employee of the MD Anderson Cancer Center. 

 

Here's Scott's follow up message.

Dan Flynn Ensures That Texax K-12 Teachers Can't Win. 

I wrote about the Texas-size K-12 403(b) plans last year. In short, Texas Representative Dan Flynn wrote what can only be described as anti-teacher legislation. He authored House Bill 2820 which eliminated a 403(b) product registration requirement (goodbye fee transparency), and ended modest fee and surrender charge caps. The legislation went into effect on September 1, 2019.

Open Season on Texas Teachers

Veteran Dallas Morning News writer Scott Burns wrote that Flynn's law “declared open season” on teachers and made Texas safe for investment “predators.” Scott Dauenhauer, CFP®, minced no words either: “The original provisions were abusive, but not abusive enough for the insurance industry.”

Not even a mask can hide how bad K-12 Texas teachers are being treated. 

Stay well.