403b help

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Determined
Posts: 7
Joined: Sat Aug 12, 2017 7:43 pm

403b help

Post by Determined » Sat Aug 12, 2017 8:13 pm

Hello,

I am new to the forum but have been reading the wikis and threads over the last four months. As of January both my parents have passed, and at 47 I have been on a steep learning curve as far as investing and retirement.

I have no loans or debts other than a manageable mortgage. I have 23 years in STRS. I have maxed out my 457 and my HSA . I have college money for my 11 year old. I have a 403b in Am Funds but stopped funding it when my employer dropped the provider I was using. I switched to the 457 that I fund directly in Lifepath35.

I have extra money to invest and I can enroll in a new 403b September 15. I have two questions.

1. It is extremely likely that I will be relocating next summer. I can job hunt in Ohio. Should I still start a new 403b?
2. i know nothing about my provider choices. Anyone have an opinion?
American Fidelity
Ameriprise Financial Services
Great American Financial Resources
Lincoln National Life Insurance Company
Metropolitan Life Insurance Company

Thank you for this wonderful resource.

Determined
Posts: 7
Joined: Sat Aug 12, 2017 7:43 pm

Re: 403b help

Post by Determined » Sat Aug 12, 2017 9:41 pm

i forgot to list my Roth IRA, and I do not get employer contributions to the 403b. I would like to be able to tax defer some extra money this year if I can, but perhaps there are better options.

MNGopher
Posts: 185
Joined: Tue Jun 16, 2015 1:44 pm

Re: 403b help

Post by MNGopher » Sat Aug 12, 2017 9:56 pm

I would not start a 403B with any of those insurance companies, especially if you will be changing employers within the next year.
They may have surrender charges and make it difficult to get your money to a new provider.

User avatar
FiveK
Posts: 2621
Joined: Sun Mar 16, 2014 2:43 pm

Re: 403b help

Post by FiveK » Sat Aug 12, 2017 9:57 pm

Determined wrote:
Sat Aug 12, 2017 8:13 pm
1. It is extremely likely that I will be relocating next summer. I can job hunt in Ohio. Should I still start a new 403b?
2. i know nothing about my provider choices. Anyone have an opinion?
1. Yes (probably - see below).
2. We need a bit more information. See Investment Planning - Bogleheads.org, and then the link at the bottom of that post.

Determined
Posts: 7
Joined: Sat Aug 12, 2017 7:43 pm

Re: 403b help

Post by Determined » Sun Aug 13, 2017 11:50 am

Looking at the posting link was very helpful. I see I have a lot of organizing to do before I really have a handle on my investments. I know where they all are, but listing percentages will take me some time.

In regards to the 403b, I did some more reading as well as visited 403bwise. Although I would love to put a little more away in a tax advantaged account, my timeline and vendor options don't make sense. When I relocate, I will likely rollover my existing 403b since the fund fees at .7 are by far the highest of anything i have.

I will keep reading. Thank you so much.

User avatar
FiveK
Posts: 2621
Joined: Sun Mar 16, 2014 2:43 pm

Re: 403b help

Post by FiveK » Sun Aug 13, 2017 12:03 pm

Determined wrote:
Sun Aug 13, 2017 11:50 am
Although I would love to put a little more away in a tax advantaged account, my timeline and vendor options don't make sense. When I relocate, I will likely rollover my existing 403b since the fund fees at .7 are by far the highest of anything i have.

I will keep reading. Thank you so much.
Perhaps include [Wiki suggestion] Invest in taxable or 401(k)? - Bogleheads.org, and the wiki article discussed there, in your reading.

MNGopher makes a good point about not investing in something (usually some form of annuity) that will charge a surrender fee, but especially because you expect a rollover in ~1 year, high fees now are much less important than using the use-it-or-lose-it tax advantaged space this year.

krow36
Posts: 1270
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: 403b help

Post by krow36 » Sun Aug 13, 2017 1:13 pm

The only provider on your list that offers a mutual fund custodial account rather than an annuity 403b is Ameriprise. Check them out on 403bcompare (run by CA State Teachers Retirement System). They sell class A and C Columbia funds (front and back loaded) which also have high ERs. However they offer 1 index fund MNSAX (small cap) with an ER of 0.45%, and the load is waived. There is no surrender fee. It might be worth investigating. You should avoid all their other offerings.

Mudpuppy
Posts: 5174
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: 403b help

Post by Mudpuppy » Sun Aug 13, 2017 2:09 pm

The providers for a 403(b) are the first step. The second step is seeing what investment lineup each provider has. Some otherwise decent providers might have horrible lineups for your district. Likewise, you can sometimes find decent lineup options with providers that generally have mostly fee-heavy insurance products. It all depends on how your district set up their plan with the providers. All this talk of surrender fees is important so you know they exist, but each district has quite a bit of liberty with how they set up their plan. Some districts are actually wise to the tricks and make things nice for their employees (rare, I know, but they exist).

If you feel comfortable posting the links to your plan documentation, we can provide more specific feedback as to whether or not you should invest, given your plan to move within the year.

Post Reply