Author Topic: Question about our 403(b) -- is this really a fixed annuity?  (Read 992 times)


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Question about our 403(b) -- is this really a fixed annuity?
« on: October 28, 2015, 06:17:47 AM »
My husband recently switched school systems and we enrolled him into a 403(b) plan with VALIC (as well as a 457, Roth IRA, etc - we have our bases covered).

The 403b is invested in Fidelity & Vanguard index funds (FSIIX, VIMAX, VSMAX, FUSEX) and some global bonds.  We contribute $175/pp, and 2 pay periods in our balance is just over $350.  This seems to be a straightforward investment vehicle.  It was the lowest fee option we had via the county. 

However, under 'account details', the product name is stated to be "Group Mutual Fund w/ Fixed Annuity."

This isn't really a fixed annuity, right?  I don't understand how it could be.  Is that name just an artifact of the history of 403b plans?  I called to ask, and the guy wasn't chill with answering my questions since its my husband's account (so annoying how all investment companies are like that), but when I said "This isn't really a fixed annuity, it's stocks, right?" he said yes but explained nothing.

I just want to make sure I fully understand what we are investing in here.