Things We Liked in 2023
January 2, 2024
When you do K-12 403(b) education and advocacy it's easy to see half full glasses. There are so many uninformed school district and union officials. There are so many terrible vendors targeting educators. And of course the big one: the K-12 403(b), unlike the 401(k), is not subject to ERISA fiduciary requirements. School districts don't have to act in the best interests of their employees — always jarring to type this — so too many don't. But as Scott and I look back on 2023, we think it was actually a pretty fantastic year for 403(b) advocacy, education and 403bwise. Here are a few of the highlights...
403bwise Facebook Group Closes in on 14,000 Members
As I type this on December 30th we are at 13,845 members. I continue to be blown away by the interest in this group, and the rich discussion in the group. It's become a bit of a group cliche, but first posts come in two general flavors...
- "I just found this group. I had no idea how bad my 403(b) vendor is. Why would my district allow this company to sell such expensive products?"
- "How do I get out of Equitable?" It's no surprise that year-after-year one of our most read stories is How to get out of AXA/Equitable.
Here's to hitting the 15,000 member mark.
Presentations to Educators
We do free one-hour Zoom sessions for educators, administrators and union officials. In 2023 we did 19 of these. They are so enjoyable. We love meeting the amazing educators working in our schools. Our favorite part is watching the "aha! moments when attendees learn the impact of investing fees. Hands raise. Questions are posted in the Chat box and follow up-emails ensue. Another favorite part: When the reps who have been selling high-cost products in the district go into spin mode. As educators exit their bad plans the reps frantically try to justify their high-cost products. Guest what? They can't.
A 2023 presentation highlight was our February address to a Meeting of Directors and Chiefs of Finance, Human Resources, Purchasing, Risk Management, and Internal Auditors for the Council of Great City Schools. In an in-person presentation titled State of the K-12 403(b)/457(b): Are you informed? Are your employees informed? we shared school district plan data, our vendor rating system, and investment fee impact to representatives from 78 of the nation's largest urban school districts. The reaction could not have been better. Attendees searched the grade we had assigned their district, asked how they could educate employees, and asked how they could improve their plan. Our presentation was voted the best at the conference. Not bad considering we spoke just before lunch, and just after an address by the charismatic superindentent of Los Angeles Unified School District, Alberto M. Carvalho.
Note: We do free one-hour Q&A sessions over Zoom each month.
Latest School District Grades
Speaking of district grades, we are working to post and grade as many school district 403(b) vendor lists as possible. Here are our latest numbers.
- 144 A (3.1%)
- 19 B (<0.5%)
- 2,868 C (62.5%)
- 883 D (22.9%)
- 655 F (16.4%)
- 17 N (0.4%) (N = Need more information)
Total: 4,586
How we grade vendors and districts.
Top K-12 403(b) Stories of 2023
Largest U.S. Teachers Union Allows Private Equity To Prey On Educators
Story, with quotes by 403bwise Director of Research Scott Dauenhauer, CFP, calls out National Education Association's relationship with Security Benefit (link to postcast with author below).
Investing for Retirement: Why You Might Want to Reconsider That 403(b)
Syndicated article has to be one of the most-read stories on K-12 403(b) issues. We can trace hundreds of Facebook Group signups to this article which has a nice mention of 403bwise. We will be interviewing the author, Liz Weston, in January.
How a Former Teacher is Educating the World About 403(b)s
Huge honor for 403bwise.org and the advocacy movement.
Favorite Pods
Like our children, Scott and I love all of our pods, but these were some of our favorites this year.
5 Minute Case for Single Vendor
10 Taylor Swift Songs About the 403(b)
Did Bush Admin Get DC Plans Right? - We tracked down one of the architects of a never-implemented plan to simplify saving for retirement.
Secure Act 3.0 - Our plan to simplify saving for retirement
What's in Store for 2024?
So much and we can't wait to get started. Thanks again for all of your support! We couldn't do it without you.
Stay wise and well (and lets make 2024 and even better year for K-12 403(b) education and advocacy).
Related Podcast:
Largest U.S. Teachers Union Allows Private Equity To Prey On Educators That's the claim made in an article for The Lever by our guest Freddy Brewster. Listen Now »