Do not assume that your employer has approved or checked out any product or firm selling 403(b) plans, as they most likely have not. That is why it is important for you to do your homework on your options. Remember to ask questions before starting, so you can avoid making an investment decision with irreversible consequences.
Selecting a 403(b) plan–3 important questions to ask
There are a lot of plans you could use, but many have high fees, surrender charges, and commissions.
Before you select a 403(b) plan, make sure you ask these questions.
1- Will I have penalties if I change my investment choices? If so, how much?
Depending on the type of product, you might need to pay surrender charges, redemption fees, and other fees.
2- What are the annual fees I pay?
Fees can vary widely on investments. Remember that even a seemingly small amount in fees can have a corrosive impact on your overall savings.
3- Does the person selling the product make more money by selling one product or another?
You should always find out how the person selling you the plan is getting paid.
The CTA 403(b) plan
Because CTA is committed to helping educators have a secure financial future, we have created the CTA retirement savings plan. It’s the only plan endorsed by your union and created for California educators.
The plan features high-quality investments and low fees.
You can find more information on the CTA 403(b) plan by going to: The Plan