We thought you might be interested in reading the following article by New York Times columnist Tara Siegel Bernard on 403(b) fees. The article raises a number of issues that we have been talking about for many years:
- Teachers are being ripped off by 403(b) products that charge excessive fees.
- Beware of insurers that offer high cost variable annuities with surrender charges that make it hard to get to your money.
- School Districts do not conduct due diligence on companies on the endorsed provider lists.
- And, there are too many providers and choices which are confusing and costing teachers more.
- There are too many conflicts of interest. As an example, the NEA receives at least $2.7 million each year from Security Benefit, their endorsed provider. Think the system is protecting you? Think again!
We suggest working with a fee-only fiduciary instead! A fiduciary MUST act in your best interests. If you don’t know how much your 403(b) is costing you and want to know, please contact us. We will tell you and we don’t even sell 403(b)’s! We want what is best for you!
And, be sure to come to our next workshop, Tuesday, February 28, 2017 to learn more!