I am the unfortunate recipient of a not-so-good 403(b) plan. As we all know stocks have been doing horrible this year. I made 13% last year (yeah) and am down 10% this year (boo). But one thing that stands out… I have never liked my retirement company's 403(b) plan (will not name names but – charades, anyone? – first word starts with an A and second compounded word starts with a V – AxxVxxxx). What they offer is 'decent' but not great. And to prove it… my employee contribution fund with the other available retirement company – Txxx-Cxxx – is doing fantastic in the face of trouble: returns are at 9% this year. Each company has the same contribution margins, but the funds available differ. So, why is fantastic company beating 'decent' company? Cuz they're fantastic that is why!

 

What did I do? Finally? Stopped the 'decent' company and opened a 403(b) with the fantastic company. Have yet to roll over due to mass paperwork. That is my next conquering regarding my retirement plan.

 

Question: What is the difference between a 401(k) and a 403(b)?

Answer: 403(b) is for nonprofit companies – like City of Hope.

 

So, do you have a 'decent' 401(k) or 403(b) and don't know how to deal with it to make your money work fantastically? Found a great article on CNN's personal finance page. Enjoy! And good luck with your funds!

 

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