A 401(k) is a antisocial business retirement plan usually accompanied by a tax-deductible company match. A 403(b) is a government or non-profit plan normally without a meet. This is because there is no incentive, other than altruistic, to match since non-profits and governments don’t need a tax reasoning.
As a teacher, you most likely have a 403(b). Investing in the 403(b) can be disadvantageous since you can most likely get the same or comparable investment strategy directly with a mutual fund without putting it inside of a costly annuity first. In other accounts, there’s no point in buying an S&P 500 Index fund within an annuity with fees when you can simply seat in an S&P 500 Index fund. One exception to this would be guaranteed, fixed interest accounts with higher net-of-fee proportion ranks.
Dan Stewart
Revere Asset Management
Dallas, TX