Author Topic: Opening up a 403 (b) So many choices  (Read 2082 times)

imustachemystash

  • Bristles
  • ***
  • Posts: 413
  • Age: 39
  • Location: Seattle
Opening up a 403 (b) So many choices
« on: May 27, 2015, 11:16:32 AM »
I want to open up a 403 (b) and was given a list of vendors from my school district.  I want to invest in something I understand so I crossed off all the life insurance and annuities companies, as well as companies that have websites that are hard to navigate.  I am left with Oppenheimer Funds Distributer and American Century Investments.  Do any of you have feedback on either of these companies?  If so, are there any funds you recommend?  I am used to investing with Vanguard and this is a new experience for me.  Any advice would be much appreciated.

MDM

  • Walrus Stache
  • *******
  • Posts: 9791
Re: Opening up a 403 (b) So many choices
« Reply #1 on: May 27, 2015, 11:26:22 AM »
If you have the fund ticker symbols you might use Morningstar to compare performance with, for example, a similar Vanguard fund.  This is the "if it walks like a duck..." approach to ensuring the fund does what it says it does.  Then go for the lowest fees among funds that match your desired asset allocation.

Does that make sense?

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: Opening up a 403 (b) So many choices
« Reply #2 on: May 27, 2015, 11:38:06 AM »
Look for the expense ratios on the funds available. Then see if the comparable Vanguard fund is close. That will tell you how good the fund is. You may not have great options, but pick the best ones available. I say to compare it to the Vanguard fund, because some kinds of funds are more costly than others by their nature.

imustachemystash

  • Bristles
  • ***
  • Posts: 413
  • Age: 39
  • Location: Seattle
Re: Opening up a 403 (b) So many choices
« Reply #3 on: May 27, 2015, 11:47:06 AM »
Okay!  Thanks so much for the tips.  I will report back after I have taken some time to look.

DrF

  • Bristles
  • ***
  • Posts: 464
Re: Opening up a 403 (b) So many choices
« Reply #4 on: May 27, 2015, 11:47:54 AM »
Are you also eligible for a 457? If so, it is the opinion of many that it is a much superior account for those seeking FIRE. If you are only going to contribute to one vs the other, I would recommend the 457.

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: Opening up a 403 (b) So many choices
« Reply #5 on: May 27, 2015, 11:57:09 AM »
Are you also eligible for a 457? If so, it is the opinion of many that it is a much superior account for those seeking FIRE. If you are only going to contribute to one vs the other, I would recommend the 457.

If so, you can actually max out both: $18k in each. It's a great deal.

imustachemystash

  • Bristles
  • ***
  • Posts: 413
  • Age: 39
  • Location: Seattle
Re: Opening up a 403 (b) So many choices
« Reply #6 on: May 27, 2015, 12:20:38 PM »
Yes.  I have already maxed out my 457 and am looking to put the remainder in a 403 (b). 

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: Opening up a 403 (b) So many choices
« Reply #7 on: May 27, 2015, 12:30:44 PM »
Yes.  I have already maxed out my 457 and am looking to put the remainder in a 403 (b). 

Sweet deal! Nice going!