403b

403b

PostBy: SuperBeetle On: Tue Mar 24, 2009 7:22 pm

Anyone have any advice for me where I should put money in a 403b? My new employer will match my contribution up to 4% of my salary and I need to try to save some money for the next 20+ years.
SuperBeetle
 
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Re: 403b

PostBy: rockwood On: Tue Mar 24, 2009 8:02 pm

If your company matches 4% then it sounds like a decent company so you could put in at least 4% to get the company match.
There should be a number of funds etc. for you to choose from including your company stock so you will need to research and decide what percentage you want to allocate to each one you choose. If your company's stock price is low right now it might be a good time to accumulate shares if you think it will go up.
I'm not trying to tell you what to do, this is just my opinion. :)
rockwood
 
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Re: 403b

PostBy: tvb On: Tue Mar 24, 2009 8:08 pm

Candy, alcohol, green tech - particularly solar, battery technology, and water purification. Not necessarily in that order.
tvb
 
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Re: 403b

PostBy: Yanche On: Tue Mar 24, 2009 10:53 pm

I was fortunate to work 32 years for a University research lab that had a 403b with employer matching. Decades ago a 403b had more favorable tax treatment, but today it's not much different that other defined contribution retirement plans. The one major difference is that you can retire at age 55 without a tax penalty.

With any retirement plan you need to fully understand the investment choices (usually there are several), when the calender dates are for changing your choices, and when it is vested. Some plans require you to work for a number of years before the employers contribution is yours. It's hard work to make good investment choices, especially when you have no interest in the technical details of judging choices. By far the largest 403b investment company is TIAA-CREF. https://www.tiaa-cref.org/
I'd suggest reading their educational materials even if it is not one of the investment choices available to you.

There is a non-profit educational association. http://www.aaii.com/
AAII seeks to educate members on investment approaches. I'd get their free literature and then consider joining. Be sure to understand the benefit of the long term view and regular portfolio re-balancing. Above all take advantage of the matching money to the fullest. Be wary of the for profit investment adviser and the market timing method of trying to predict the market and getting in and out of the market. AAII has make-believe educational portfolios that you can test your knowledge on. Until you have more knowledge I suggest you make your investment choice a conservative one, one with a guaranteed return. It todays market it will be a low return. Good Luck.
Yanche
 
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