No. of Recommendations: 0

Let's look at your situation from another angle. The variable annuity that you are investing in is most likely loaded with a ton of "miscellaneous" fees. If you check the prospectus, most likely you will see a mortality/expense fee of at least 1%. You will also discover that if you decide to move your money to another plan, you will incur a surrender charge of at least 5%.

Check around with your company and see what other 403b options are available. It is important to remember that 403b's invest in annuities, while a 403b(7) invests in mutual funds. For those who do not receive matching funds, most Fools recommend starting with a Roth IRA and then going from there.

Do your homework and analyze your situation. If you have the means and/or discipline, it it possible to plan for your retirement without using the 403b. I suspect that the person who sold you the variable annuity is getting a nice commission for signing you up for the plan. I have decided not to participate in my school district's 403b plans since I refuse to pay anyone to invest my money.

Check out TMFPixy's post #11725 on this board for a great analysis on variable annuities.

Please post back if you have more questions.

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