Join Shaun Morgan as he sits down with Dan Otter, the founder of 403bwise.org, to discuss the challenges with the K-12 403b and how you can overcome them.
Explore the show notes at:
https://www.teachermoneyshow.com/show39
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The Problem
403b plans for teachers often have high fees (1-2% is considered a high fee!), limited investment options (often only annuities), and predatory sales practices (like pretending they're endorsed by the school). A little education can help teachers overcome these problems, but you have to know it is a problem first.
How 403bwise helps
403bwise.org provides free resources to educate teachers about their 403b options and advocate for lower-cost plans. For example, Teachers can research their district's 403b vendors using the vendor rating tool on 403bwise.org. If no good options exist, teachers can advocate to their district, explore other accounts like 457b, or invest in IRAs.
Advocating for a Better Future
But, we don't want to just fix the problem for one teacher, let's fix it for everyone! Get an army of teachers at your school or district together to ask for a better 403b option (or better yet) go single vendor with the right choice. And, if you have the clout, take it to the legislators and get this problem fixed!
Tune in to this episode for a deeper dive into these topics and more. Subscribe to The Teacher Money Show for more insightful episodes on financial empowerment for educators!
