403B Help

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Topic Author
HotRod140
Posts: 86
Joined: Tue Apr 15, 2008 12:24 pm

403B Help

Post by HotRod140 » Tue Jan 13, 2009 6:47 pm

Hey guys
My new job is offering a 403B. It is with the Principal Financial Group. I was looking at their funds. Ugg!! and high expenses. Anyone know anything about them?. I am thinking of not getting involved

sullivanke
Posts: 154
Joined: Thu Apr 19, 2007 9:40 am

Post by sullivanke » Tue Jan 13, 2009 7:16 pm

Is this the only option you have? If not list all other vendors that are options.
If so, and fees are to high, stick to a Roth IRA and index funds. In the interim pressure your employer to offer a low cost mutual fund provider.

Topic Author
HotRod140
Posts: 86
Joined: Tue Apr 15, 2008 12:24 pm

403B Help

Post by HotRod140 » Tue Jan 13, 2009 8:17 pm

Yes thats the only choices, I told them about vanguard, but they didnt listen. I cant believe how high the fees are. I am gonna stay away, nobody is making money but the fund administrators

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BruceM
Posts: 1842
Joined: Fri Aug 08, 2008 1:09 pm
Location: Manzanita, Oregon

Re: 403B Help

Post by BruceM » Wed Jan 14, 2009 11:40 am

HotRod140 wrote:Yes thats the only choices, I told them about vanguard, but they didnt listen. I cant believe how high the fees are. I am gonna stay away, nobody is making money but the fund administrators
Absent any kind of employer match, I think you're 'stay-away' approach is the correct one.

Once you've figured out how much you need to save each year, I'd set up a payroll allotment and direct the pay to your Traditional IRA (if your AGI allows you to deduct it) or Roth IRA (if you can't deduct your TIRA).

If you need to save more than $5,000 per year, direct this additional amount to a taxable account. If you do this, use your IRA contribution to invest in income producing mutual funds/ETF's and your taxable account for growth related investments.

After you've done this and are satisfied, write an article for your employee newspaper/circular/on-line forum and explain what you've done and why, advocating that fellow employees consider this approach. If you get enough to abandon this expensive plan, change could be forthcoming.

BruceM

Topic Author
HotRod140
Posts: 86
Joined: Tue Apr 15, 2008 12:24 pm

403B Help

Post by HotRod140 » Wed Jan 14, 2009 7:24 pm

its a small non profit office (20 employees) I tried to tell people but no on seems to care. I will just stay away before I will pay outrageous fees. Thanks for responding

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