UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: Dodgeball Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: 403b Tax Sheltered Annuity Date: 3/18/2000 1:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Sounds like you are forced to go through an approved vendor to invest your 403(b). Many school districts require its employees to choose from a list of people to set up their 403(b). This forces you to pay a commission to someone to help you set up the account. I'm in the same boat, and am extremely frustrated since I am not allowed to bypass these salespeople to invest my hard earned money.

Anyway, these agents generally force you to invest in loaded funds which will pay them a commission. Why no Vanguard funds you ask? Since Vanguard offers no-load funds, the agent can not make a commission off of the sale.

Sounds like your current vendor has you in an annuity, thus the hefty fees. Check with your HR office to find out which agents offer mutual funds, or 403(b) 7's, and which offer annuities or 403(b)'s. Your best bet will likely be the 403b(7)'s, since annuities are typically loaded with hidden fees. Check out post #11725 on this board for more info on annuities.

A word of caution: many of the reps in my district that I have met with have provided false and/or misleading information with regards to 403b's. When you meet with these people, don't forget to ask them the tough questions. You want to know exactly what charges are being levied against your account and so forth. In other words, do your homework!! I am amazed at how many of my colleagues know nothing about what funds they are in or how the 403b's work.

Hope this helps.

Dave
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement