Currently my 403b plan is within a Multi-Fund Variable Annuity. From my reading and very limited knowledge, this is a terrible option for a 403b.

Being a small, non-profit agency, no one in my agency (including Human Resources) understands a thing about retirement and unfortunately made this choice.

The CEO is interested in my pleas to consider moving away from an annuity. He is looking to me to help him understand why this is not a good option.

I was hoping that someone can give me easy to understand information for myself and my company as to why an annuity is not a good option as the only investment vehicle for a 403b plan. I have read about mortality expenses, higher admin. fees and the like, but don't really understand it all. I have also read something about where most 403bs principal and earnings grow tax-deferred whereas only an annuity's earning do, but I still don't really understand these concepts.


So, any help is appreciated. There is a very good chance that I will be with this company for my entire woring career, so I am quite concerned. If a don't explain this well, I may lose my opportunity to change the system!

Thanks in advance for your help.