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Author: Mark0Young Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75532  
Subject: Re: SRA's and the 403-B Date: 4/28/2004 2:34 AM
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The only place I have heard of an "SRA" is at TIAA-CREF.

TIAA-CREF has low expenses, so their "annuities" don't have the problems that most annuities have with high expenses.

However, it would help to know what is meant by "SRA".

It makes sense to have a Roth IRA as well as a 403(b).

It makes less sense to make non-deductible contributions to a Traditional IRA--the tax savings aren't as good as for a 403(b) or Roth IRA. Same story for a non-qualified annuity: the tax savings aren't that good. And that is assuming that the expenses are low (e.g., at Vanguard or TIAA-CREF).

If the expenses are high enough, the tax savings will be eaten by the expenses, which is why most annuities have a bad name among the financial savy. It gets worse: many variable annuities quote "M&E Fees" and "investment advisory fees" in separate documents so one doesn't see the total annual cost of investing in one place. That is why it is important to find out about expenses as well as what type of tax savings one may be getting, which is why I gladly embrace a 403(b) at TIAA-CREF and a Roth IRA at Vanguard, but anywhere where one can get both a tax break and low expenses for long-term growth is good.
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