Skip to main content
No. of Recommendations: 0
Having an annuity in a 403(b) is a waste. The 403(b) is already tax-deferred, but the annuity charges you a fee to make it tax-deferred.

Please excuse my ignorance if I am incorrect, but I understand an annuity to be what you get after you retire. In other words, during your working days, you are investing in some sort of "fund" or other "investment" and when you retire, these outfits want you to "annuitize" you "investment" in order to determine your payout. I am in a TSA/403(b) with Valic and am invested in their various funds. I will retire in about 6 months and they are already suggesting I "annuitize" my investments when I retire since I will be making no further payments into them. I do not choose to do this, so they plan manager is saying, OK, leave your money in our funds and let it grow and withdraw as necessary. Since I have an IRA also, I plan to set up the IRA for my living expenses and roll the TSA into a self-directed IRA with Waterhouse. If this is incorrect, please help us all by correcting now. Thanks. HE2
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.