logo

Channel List
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies
Safety
We take forum safety very seriously here at BellaOnline. Please be sure to read through our Forum Guidelines. Let us know if you have any questions or comments!
Newest Members
johnjoni, julio cesper, RoRogue, Khas Khabar, Lisa Hatcher
58121 Registered Users
Forum Stats
58,121 Registered Members
417 Forums
117,596 Topics
836,333 Posts

Most users ever online: 615 @ 04/22/15 10:11 AM
Top Posters (30 Days)
Nancy Roussy 277
Lisa LowCarb / VideoGames 89
Mona - Astronomy 81
Angie 64
Connie - ADD/Sandwiches 43
mary-tea1 23
Korie - California/Yoga/Knitting Editor 21
Lynne - ChristianLiving 16
Angela - Drama Movies 15
Digital Art and Animation 10
Ad Income Supports Charity
Topic Options
#776180 - 08/02/12 04:35 PM 403b plans
AKLisa- Knitting Editor Offline
BellaOnline Editor
Gecko

Registered: 08/07/10
Posts: 753
Loc: Fairbanks, Alaska
Since I work in education I have the option of signing up for a 403(b) plan. This is like a 401K for public educators. Right now I am trying to get prospectus' and then I plan to make a spreadsheet comparing plans. Below is the list of what categories I will put on the spreadsheet. My questions is if anyone has any other suggestions as to what they would add?

_-average return rate
-yearly fees-
-penalties for early withdrawal, by program and IRS
-minimums to start and contribute
-plan type (annuity, money market, etc.)
-if I can choose to throw in extra money when I have it

Well, what would anyone else add? what other criteria did you use when selecting your plan for 401K, 403b, or similar program?


Edited by AKLisa- Knitting Editor (08/02/12 06:14 PM)
_________________________
Lisa Linnell-Olsen
Knitting Website
Knitting Forum

Top
#776501 - 08/05/12 12:57 PM Re: 403b plans [Re: AKLisa- Knitting Editor]
Sandra Investing/HFinance Offline
BellaOnline Editor
Koala

Registered: 07/13/12
Posts: 2025
Lisa,

I think you have a good idea of what to look for in your plan options. I would stay away from annuities and go with mutual funds.

With the mutual funds, look for no-load funds and low fees if they are offered. Also, consider how the funds performance compares to similar funds and the benchmark index to which it is compared.

Keep us posted. I'd love to hear everyone else's thoughts on this issue as well.
_________________________
Sandra Baublitz, Investing/Home Finance Editor
Investing Website
Home Finance Website
Sandra Baublitz Author Webpage



Top
#776512 - 08/05/12 02:05 PM Re: 403b plans [Re: AKLisa- Knitting Editor]
AKLisa- Knitting Editor Offline
BellaOnline Editor
Gecko

Registered: 08/07/10
Posts: 753
Loc: Fairbanks, Alaska
I don't really understand what an annuity is, but it keeps coming up that these are NOT good investment vehicles for these types of plans. Sadly, I think most of my coworkers have their 403(b) in annuities.
There is a guy who comes by our school from one of the companies allowed in the plan, so almost everyone has their 403(b) set up with him. I don't even think they looked at all their options. It's kinda scary, really.
When we got back to work I plan to ask my coworkers some questions very delicately about why they chose the plans they did.
Until then, I plan to keep investigating. I have to contact about 10 different companies for prospectus (or is that prospectii?) I asked our human resources if any charts had been prepared to help us choose plans, and they told me I have to do that myself or hire a CFP to do it.
I want to understand this stuff better, so I am going the DIY route. I really wonder how much my fellow educators understand investing.
_________________________
Lisa Linnell-Olsen
Knitting Website
Knitting Forum

Top
#776575 - 08/06/12 05:45 AM Re: 403b plans [Re: AKLisa- Knitting Editor]
Sandra Investing/HFinance Offline
BellaOnline Editor
Koala

Registered: 07/13/12
Posts: 2025
Lisa,
I agree with you. It is scary. I think too often people are so busy with their careers and families that they don't feel they have the time to understand their options. Sadly, from what I understand, many 401k and 403b plans are set up to benefit the companies offering the plans and not the people participating in the plans.
I admire your due diligence and wish everyone else would do the same. Company salesmen can make any investment sound wonderful even when they are not.
As for annuities, the big drawback is that you lock up your money for years. Returns will either be a guaranteed minimum with a chance at a higher return or will fluctuate with the market. They do defer taxes which I think adds to the allure but the main drawback is that they charge high fees which erode your returns. Plus high penalties to withdraw early.
Please keep me posted and I'll be happy to answer any questions you have.
_________________________
Sandra Baublitz, Investing/Home Finance Editor
Investing Website
Home Finance Website
Sandra Baublitz Author Webpage



Top

Moderator:  Sandra Investing/HFinance 

Want to reply? Register as a Forum Member - it's quick, free and fun!
Brand New Posts
Teaching the Christmas story
by Lynne - ChristianLiving
Christian Living
12:56 AM
What Did You Write Today?
by Lisa LowCarb / VideoGames
Fiction Writing
10:08 PM
The Hobbit: The Battle of the Five Armies (2014)
by Nancy Roussy
Sci Fi/Fantasy Movies
05:05 PM
Lisa's Daily 10pm EST / 8pm MST Meditation
by Lisa LowCarb / VideoGames
Meditation
03:15 PM
What will you do today?
by Angie
Inspiration
12:37 PM
Astronomy On This Day . . .
by Angie
Astronomy
12:34 PM
Getting Rid of "Stuff" and Lightening Up
by Angie
Geriatrics
12:30 PM
Where are you and how is the weather?
by Angie
Inspiration
12:27 PM
New Film Noir From Johnny Ma - Old Stone
by Angela - Drama Movies
Drama Movies
11:05 AM
Zootopia
by Maria - Prime Time TV
Children's Movies
10:18 AM
Register to Post!
Want to post? For security reasons you need to Register as a Forum Member. It's quick, easy and free!
Forum Activities
Book Clubs
Trivia Contests
Who's Online
0 registered (), 69 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Ad Income Supports Charity



| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2016 Minerva WebWorks LLC. All rights reserved.