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Investing/Strategies / Retirement Investing
|Subject: Re: 403-B's and my options||Date: 9/10/1999 9:22 AM|
|Author: Leviathan||Number: 13835 of 80175|
1. Is it common for qualified plans to offer only annuities as the investment vehicle?
2. If an annuity is our only option here, do the tax advantages offered by the 403-B out-weigh the additional costs and potentially "restricted" returns offered by the mutual fund subaccounts offered through the annuity?
I'm not sure I understand that question. Having an annuity in a 403(b) is a waste. The 403(b) is already tax-deferred, but the annuity charges you a fee to make it tax-deferred. I'm not 100% positive about this, but I believe that you can invest outside the given choices in a 403(b). Check with a financial planner or with a mutual fund company. You'd be much better off going outside those choices and putting the money into mutual funds yourself.
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