Ken Ford and Bruce McNutt discuss 403(b) plans. This podcast is for teachers, superintendents, and teachers union reps.
Links mentioned in podcast:
Model Disclosure Form
Sources for statistical data:
1. AON Hewitt – How 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It. January 2016
2. AXA Equitable Life Insurance Company is the #1 provider of retirement plans for K-12 schools, serving more than 820,000 participants in over 17,000 plans.” from AXA annuity review
3. “Your variable annuity has a mortality and expense risk charge at an annual rate of 1.25%”
4. “On average Vanguard have mutual funds with fees at .1% – .2%…”
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
Mutual fund investing involves risks, including the loss of principal.
S&P 500 Index is an unmanaged index which cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.