403b Account?

Discussion in 'General Education' started by YoungTeacherGuy, Jan 4, 2018.

  1. readingrules12

    readingrules12 Fanatic

    Joined:
    Jul 3, 2010
    Messages:
    2,796
    Likes Received:
    251

    Jan 6, 2018

    This is why it is so important to get some professional help with these funds. Most schools or districts usually have someone who can help with this.Now most 403bs have a lot of options which wasn't the case many years ago. In my 403b, I have had have index funds that perform as well or better than the market.

    Good point on the subject of fees by another poster. Fees can be quite high, but not always.
     
  2. Tyler B.

    Tyler B. Devotee

    Joined:
    Feb 21, 2012
    Messages:
    1,133
    Likes Received:
    315

    Jan 6, 2018

    In my experience, "professional help" has meant a high pressure salesperson trying to get me to buy high fee financial instruments. The best financial help would come from a fee only financial advisor where you pay for the advice.

    The union had an inexpereinced advisor who urged me to put my money into insurance company annuities - probably the hightest fee "investment" of all. Plus, an annuity is a tax shelter, but in a 403b, which is already a tax shelter, it makes no sense. Avoid annunities.

    An index fund could never beat the market since it is the market.
     
  3. whizkid

    whizkid Rookie

    Joined:
    Aug 13, 2016
    Messages:
    82
    Likes Received:
    17

    Jan 6, 2018

    Yea, but it's beating a bank or fixed income return. Lol
     
  4. whizkid

    whizkid Rookie

    Joined:
    Aug 13, 2016
    Messages:
    82
    Likes Received:
    17

    Jan 6, 2018

    I opened a Roth with Vanguard my first year of teaching and plan on contributing much more than I've done in past years. I plan on drawing at least three checks in retirement: pension, Roth and SS. I also plan on saving more this year. I'm thinking about selling the shares in my brokerage account and dumping the proceeds into my Roth since I don't study individual companies anymore.
     
  5. whizkid

    whizkid Rookie

    Joined:
    Aug 13, 2016
    Messages:
    82
    Likes Received:
    17

    Jan 6, 2018

    In the age of the Internet and lightning fast information, there's no need.
     
  6. Janedo5513

    Janedo5513 Rookie

    Joined:
    Jan 2, 2014
    Messages:
    66
    Likes Received:
    9

    Jan 6, 2018

    I started a 403b at an young age and wasn't getting a great return. Ironically, it was my employer who matched any funds that the employee puts in up to a certain figure (401k). I was with them for five years and was able to roll it over into a Roth. I am still contributing to that Roth to this day. Great return and the company has great customer service.
     
  7. jadorelafrance

    jadorelafrance Cohort

    Joined:
    Jul 10, 2015
    Messages:
    506
    Likes Received:
    187

    Jan 7, 2018

    What company?
     
  8. Janedo5513

    Janedo5513 Rookie

    Joined:
    Jan 2, 2014
    Messages:
    66
    Likes Received:
    9

    Jan 7, 2018

    403b was TIAA CREF and now I am with Fidelity
     
  9. readingrules12

    readingrules12 Fanatic

    Joined:
    Jul 3, 2010
    Messages:
    2,796
    Likes Received:
    251

    Jan 7, 2018

    Fidelity is good. Vanguard is also good.
     
  10. FourSquare

    FourSquare Fanatic

    Joined:
    Aug 4, 2009
    Messages:
    2,722
    Likes Received:
    206

    Jan 7, 2018

    I opened a Roth IRA on Wealthfront, maxed out the risk level, and just let the robo-advisor do its thing. I've only put $4200 into it, but it's currently sitting at $5407. Not bad for not having to actually do anything. Much better return than letting that money sit in the bank. I've done anything from $30 payments to $300 payments. I'm looking to deposit more regularly this year. I won't get anything from Social Security, so I'll need something if the pension system implodes. :eek:
     
  11. Tyler B.

    Tyler B. Devotee

    Joined:
    Feb 21, 2012
    Messages:
    1,133
    Likes Received:
    315

    Jan 9, 2018

    I would agree with this. Teachers should view managing their finances as a part-time job for which they are very well compensated. Many teachers view financial management as an onerous chore that should be avoided.

    We need to study up on our choices and the benefits and disadvantages of each choice and make a plan. This is literally worth a million dollars.
     
  12. cupcakequeen

    cupcakequeen Comrade

    Joined:
    Sep 10, 2014
    Messages:
    257
    Likes Received:
    57

    Jan 9, 2018

    Just curious, for those of you who do have some type of pension plan, what's it like? Here in NC we don't have the best pay, but we have a surprisingly decent and pretty well funded (over 90% I believe) pension plan. I've heard horror stories about pensions in other states, though.
     
  13. John Lee

    John Lee Groupie

    Joined:
    Dec 4, 2009
    Messages:
    1,440
    Likes Received:
    41

    Jan 9, 2018

    The question is: what to do after you've studied? I'm with an insurance company (not an investment company, apparently a no-no), and I've learned that there are fees that need to be fleshed out. When I go to my company and ask those questions, assuming the answers aren't positive for me, what is the alternative? Can I move my contributions to another company?

    I've read that, to make a 403b work, you need district matching. Otherwise, there are better options out there.
     
  14. Tyler B.

    Tyler B. Devotee

    Joined:
    Feb 21, 2012
    Messages:
    1,133
    Likes Received:
    315

    Jan 9, 2018

    Being with an insurance company is not a no-no. You are off and running. Many of your colleagues haven't even started the race yet, so you should feel good about what you are doing.

    The 403b is a wonderful investment device. When you put $100 dollars into one, it reduces your taxable income, so the IRS views you as having made less money, so you save some money on taxes. That $100 might save you $40 on taxes, so you are really making a lot on your contributions.

    If you are not happy with what the insurance company offers you, you can check with the district office to see what alternatives they offer. If one of them is to go with a low cost company like Vanguard, then switch your contributions over there.

    Another alternative is to roll your 403b account to an IRA in some place like Vanguard. You need to check and see if your current account has "surrender fees" and act so you avoid those. Also, you need to contact Vanguard (or whatever new company you decide to go with) and get instructions about how to roll the account over to an IRA. Whatever you do, don't have your current company send you a check. This would trigger a taxable event.
     
    John Lee likes this.
  15. John Lee

    John Lee Groupie

    Joined:
    Dec 4, 2009
    Messages:
    1,440
    Likes Received:
    41

    Jan 10, 2018 at 9:59 PM

    Is this a situation where consulting a financial advisor would be worthwhile? I'm considering one anyway, but I'm confused about how to put my "knowledge" into action. I only know not to go with an insurance company after the fact, but currently still contribute via them. I've only recently become more knowledgeable, but how to apply it? Is still unknown to me. So I do have the idea of consulting an advisor, to help me set myself up to start. I'm reluctant with that too though, because it isn't like I have a ton of money in any case.
     
    Tyler B. likes this.
  16. Tyler B.

    Tyler B. Devotee

    Joined:
    Feb 21, 2012
    Messages:
    1,133
    Likes Received:
    315

    Jan 10, 2018 at 11:21 PM

    It will be a ton of money when you retire. One place to look for a fee-only financial advisor is this company. They will probably charge you by the hour. It's painful to pay for advice, but the "free" advice that salespeople give you is unreliable. If your advisor is offering to sell you something, get a second opinion.
     

Share This Page

Members Online Now

  1. janlee,
  2. MrsC,
  3. mrsf70,
  4. jadorelafrance
Total: 299 (members: 4, guests: 229, robots: 66)
test