Why 403(b) Plans Are So Awful So Often
When it comes to building a nest egg for your golden years, there's nothing like a good tax-advantaged retirement account to give you a leg up. Investing through your employer's 401(k) usually means you get matching funds, an instant tax break, and the ease of use that comes from automatic payroll deductions. And one can hope that your company has done well for its employees by picking low-fee, high-quality funds as options.
Yes, a good tax-advantaged retirement account is a fine thing. But if you work for a nonprofit, a government entity, or a school district, you probably don't get a good one. Your choice is called a 403(b), and if you think that's just a different name for the same basic product as a 401(k), you could be horribly, expensively, mistaken. In this segment of the Motley Fool Answers podcast, host Robert Brokamp interviews a couple of experts to find out just why 403(b) plans are the worst: Dan Otter and Scott Dauenhauer of 403bwise.org and the Teach and Retire Rich podcast.
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Source Fool.com
