No. of Recommendations: 0
Peppermint Patty:

You said: "But there's more to it than that!"

Sure, higher expenses, for one.

"Good quality TSA's will offer a variety of investment accounts managed by different quality managers (e.g. Janus, Putnam, Scudder, etc.)."

Agreed, but the funds are available outside of the annuity.

"And finally, one of the benefits you pay for - the guaranteed "death benefit", which guarantees a minimum lump sum payout to a beneficiary in the event of the owner/annuitant's premature demise!"

Of course, it does: it's an INSURANCE product. It's what the last financial planner tried to sell us! And I don't mean to say its a BAD product. My point, which I may not have made stronlgly enough, is that it seems that 403b participants are not that well informed regarding their choices, and are restricted by law from the benefits enjoyed by 401k participants.

Funny you didn't mention that heavy back end load if the partcipant decides to try mutual funds...

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