Getting out of a bad 403(b)

 

Getting out of a high fee 403b.

The fees in your 403(b) could eat half of your wealth after 30 years.  So what should you do? Consider these steps:

1) It costs nothing to stop the 403b and start a 401k or 457. So, that would be my first step. I can review your 403b if you would like. If you stop the 403b, you MUST start something else, promise me! A bad 403b is better than doing nothing.

2) Your 403b is stuck there for now. However, I can at least help you select the cheapest funds that are available, so we can slow the bleeding.

3) If PSD gets a lower fee 403b (Aspire, direct invest with Security Benefit, etc.) you can transfer it there and only pay the early surrender fee. We are hopeful that there will be a better option soon.

4) If all else fails, when you leave PSD, you can call Vanguard and have them roll it into a low fee IRA. That's what I will do with my high fee 403b when I retire in a few years! Yes, I got stuck in a bad 403b too.

5) If it makes sense, you can use the 403b to buy years in PERA. If that interests you, call PERA and let them make some quick calculations for you. I used a big chunk of my bad 403b to buy two years in PERA. That's allowing me to retire at 50.