Benefits of a 403b account

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In this video, we discuss the benefits of contributing to your 403b plan along with the downsides and things you need to look out for. This video is intended for NY State Teachers and K-12 Public School District Employees.
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School of Personal Finance is an Investment Advisor registered with the State(s) of New York. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Please contact us at 914-299-3843 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend you compare any account reports from SPF with the account statements from your Custodian. Please notify us if you do not receive statements from your Custodian on at least a quarterly basis. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.schoolofpersonalfinance.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.

Опубликовано:

9 сен 2024

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Комментарии : 49

@brizzle799 Год назад

This is the most SIMPLE explanation of a 403b that ive ever seen and ive been purusing through videos for a while. Thank you so much! You made all of this make sense in my head.

@SchoolofPersonalFinance 10 месяцев назад

Thank you! Glad it helped.

@fabbz94 Месяц назад

Hello from San Francisco. My wife has a 403b plan so this was a helpful explanation.

@JaniceHylton 10 месяцев назад

I'm in NJ and I just love this video!!!

@SchoolofPersonalFinance 10 месяцев назад

Thanks!

@barbarafagundes1019 27 дней назад

Great explanation! Thank you!!!

@jrossnjax7 Год назад

Great video! 👍I'm new to TSAs and need all the help I can get. This was very helpful and you explained it well. I just subscribed to learn more.

@SchoolofPersonalFinance 10 месяцев назад

Thanks! More coming!

@FIRE_DrNinjaTurtle 10 месяцев назад

I have a 403b ROTH. It is new and I am loading it up to the max of 30000 a year

@SchoolofPersonalFinance 10 месяцев назад

That’s awesome!! Who is the 403b company?

@breehartley1627 3 месяца назад

The ROTH 403b is awesome for many reasons for teachers. Teachers will need to pay taxes on their pensions, traditional investments and SS so the flexibility it creates with tax free withdrawals is priceless. It does not count against your earned income in retirement. 👏🏼👏🏼

@tonyashaikmohamed4438 18 дней назад

Thank you

@ret4kind Год назад

As a piece of investment advice, I'd stay away from FTX for a while. Ask a public district employee of the Ontario Teacher's retirement fund for reference.

@PeaceLoveFreedom71 3 месяца назад

This comment aged like fine wine.

@theunengagedagent 11 месяцев назад

Thank you for this informative video! This is helpful stuff!

@SchoolofPersonalFinance 10 месяцев назад

Thanks!

@stephenlee5525 8 месяцев назад

I work at a community college and have access to both a 403b and 457. My plan is to contribute mostly into the Roth 457 in index funds and let that grow. That'll be my main account to withdraw from at retirement. With the 403b, there is no match but there is a guaranteed fund that offers 8.25% interest a year (fingers crossed it'll stay that way). I'll use that as my "savings" account/cash bucket. I'll contribute some money there yearly and let it grow so that I can use it as my cash bucket for when the markets are down during retirement. That way I wouldn't be selling my funds at a loss and use the money from the 403b as a buffer during bear markets. Also trying to build a dividend portfolio in my Roth IRA, and use that as another stream of income at retirement. I believe employees at most public university/school settings have access to all these amazing tools at their hand to retire quite comfortably if they are strategic. Not to mention the pension waiting for them as well.

@SchoolofPersonalFinance 8 месяцев назад

That’s awesome! A guaranteed 8.25% account!! Holy moly.

@docb77 2 дня назад

How's milliman as a custodian?

@loveforpaper6203 4 месяца назад

New subscriber ! Thanks for sharing

@Get2KnowJesus1 Год назад

Can you post a video explaining what a pension is?

@SchoolofPersonalFinance 10 месяцев назад

Yes! It is on my to do list lol.

@FIRE_DrNinjaTurtle 10 месяцев назад

I am a college adjunct and I have a 403B and a 457.

@SchoolofPersonalFinance 10 месяцев назад

Awesome!

@alazizsadiyazayed8430 10 дней назад

Can anyone help me ? which company is best for 403b in texas ? thank you

@michaelo8277 Год назад

Thanks for the video! This is great stuff! I am a teacher in NJ, and I have always had this question… maybe you can answer it in a future video… Most websites suggest you save ~15% of your paycheck for retirement. However how does that number change for a teacher with a pension? What percentage should I put in my 403b if I will be getting a full pension at retirement?

@SchoolofPersonalFinance 10 месяцев назад

I always say the more you have in your 403b when you walk out the door the happier you will be. If you can stick to the 15% for now and even try to max it in the future I think that would great. Obviously it totally depends on your specific situation. The pension definitely gives you a big headstart and allows you to slack a little bit and still have a comfortable retirement...but it is so dependent on your individual situation.

@aykanushkeshishyan1641 Год назад

Thank you for the informative video. I have a 403 b, I chose traditional vs Roth, but was only offered to go with one vendor Voya financial and you are right they do have hidden fees, I wonder if the nurses also have ‘tiers’ that’s something I haven’t heard of, I have to do some digging😀

@SchoolofPersonalFinance 10 месяцев назад

Hopefully the fees are not too bad. Were you able to find out specifics?

@TVHouseHistorian 9 месяцев назад

Ive seen 403b described as an annuity. How does that differ from a pension? Can you outlive a 403b?

@SchoolofPersonalFinance 9 месяцев назад

Tough question to answer on here but A 403b is similar to 401k plan at a private employer. You can outlive a 403b if you withdraw the funds. Some 403b plans offer annuities as the investment option. You can choose to take the 403b annuity and turn it into a lifetime income that you can not outlive. The payout will be based on age and account balance.

@TVHouseHistorian 9 месяцев назад

@@SchoolofPersonalFinance Ahhh okay! That makes sense. I’m looking at an employer who happens to offer a 403b annuity. It doesn’t look like anything that will make you rich, but after 10 years, along with other retirement savings vehicles, it looks like it would be a secure option.

@SchoolofPersonalFinance 9 месяцев назад

Make sure to check on the fees. Is it a variable annuity with investment options? These types of 403b annuities are usually very expensive.

@predatorpursuers115 Год назад

Can I contribute to my 403b from money in my checking account or does that money have to be taken from my paychecks

@SchoolofPersonalFinance 10 месяцев назад

It has to be payroll deducted from your paycheck.

@predatorpursuers115 Год назад

Would you recommend tiaa?

@SchoolofPersonalFinance 10 месяцев назад

It depends lol. Compared to what is the question. But overall I believe TIAA is better than the big insurance players in the 403b space. You want to dial in on the fees. TIAA has a fixed interest account that offers a good rate but it complicated when it comes to withdrawing money in retirement.

@predatorpursuers115 10 месяцев назад

@@SchoolofPersonalFinance can you Make a video on how to set up the fixed account..I let my job pick where to invest my money and don't know how to put it towards fixed

@Africantoothfairy Год назад

I worked for a non profit for a few years but I have transitioned. Can I keep my 403b account and just add money to it myself? Or do I need to cash it out?

@SchoolofPersonalFinance Год назад

You can keep it there but you can not add money to it anymore. Another option is to roll it over into a Traditional IRA. Don’t cash it out. You will owe taxes and a 10% penalty if you’re under 59 1/2.

@CardiacJordan Год назад

I plan on leaving my job early to go to med school and I had a 403b plan . My job matches my contribution. I plan on taking the full amount and using it to support me in school . Will I be able to get the full amount or just what I contributed

@SchoolofPersonalFinance 10 месяцев назад

If you are separated from service you should be able to withdraw the funds BUT you if you are under 59 1/2 you will have a 10% penalty plus owe ordinary income tax. Not an ideal situation but you should be able to withdraw. The match will depend on the vesting rules for your plan. If the match is 100% vested then it is yours.

@angietruss9156 5 месяцев назад

When I looked into taking withdrawals from my 403b and in my research it shows that withdrawals are at 20% when I was under the impression and was told it would be at the tax rate at retirement. What am I missing?

@SchoolofPersonalFinance 5 месяцев назад

20% is the required withholding that gets sent to the IRS but you will end up paying at your actual tax rate when you file your taxes. 20% could be too much but in many cases it is not enough.