| Stuck with bad investment choices? Frustrated at lost savings opportunities? Use our information and tools to lobby your employer for better choices. This guide will help you find just the right information to make your case. | |
| First, Try the Simple... Just Ask | |
| The best course of action is a frontal assault. Simply ask your employer to begin offering better choices. Enlist co-workers, and point out the differences in fees and performance. Use the chart from this story on fees to clearly show the effects of high-fee investments on return. Many employers, especially K-12 ones, claim that it is too difficult to offer low-fee plans and be in IRS-compliance. Nonsense! Point them to this story about crafting a Model 403(b) Plan. | |
| Not Doing the Trick? Try This.... | |
| We also recommend that you to make copies of our widely lauded book Teach and Retire Rich available to co-workers and decision makers. The book details the workings of teacher retirement plans in an accessible user-friendly way with particular attention focused on investing in quality, reasonably priced products. Finally, armed with all of this information use this lobbying letter to format a letter to make your case. We encourage you to send a copy to all decision makers including superintendents, board members, presidents, etc. | |
| You Can Always Play the Compliance Card | |
| Thanks to comprehensive new 403(b) regulations set to go into full effect January 1, 2009, employers have a unique opportunity to create a quality plan that is both employee-friendly and in IRS-compliance. See our information on the new regulations in the Employer section. It should be noted that prior to September 24, 2007 participants could perform something called a 90-24 asset transfer into an outside-of-plan financial institution of their choice. Unfortunately, that option is no longer available. | |
| Last Resort | |
| If all else fails, you may want to simply invest in a Roth IRA with the financial institution of your choice (see: 403(b) or Roth IRA?). While Roth IRA contributions are after tax money, and the contribution limit is small (currently $4,000 annually going up to $5,000 for 2008), the money grows tax deferred and is NOT taxed upon withdrawal at retirement. Plus you can pick virtually any vendor you want to invest with. After setting up a Roth IRA, you can then focus on getting your employer to Wise up about the 403(b). Good luck! You may also want to post a question on our Discussion Board so that you can get some more opinions, and so that others can learn from your question. | |
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Start a 403(b) » |
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