Why so many 403(b) plans flunk the smell test
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.
On this Motley Fool Answers podcast, co-hosts Robert Brokamp and Alison Southwick have invited a couple of experts to explain just why 403(b) plans are the worst: Dan Otter and Scott Dauenhauer of 403bwise.org and the Teach and Retire Rich podcast. But first, there's a "What's Up, Alison?" segment in which Alison digs into the details and revelations that lead to WeWork's tumble from highly anticipated IPO to toxic hot mess.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Alison Southwick owns shares of Amazon. Rick Engdahl owns shares of Amazon, Facebook, and Microsoft. Robert Brokamp, CFP owns shares of Facebook. The Motley Fool owns shares of and recommends Amazon, Facebook, Microsoft, and Slack Technologies. The Motley Fool has the following options: long January 2021 $85 calls on Microsoft. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
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