403b Fees
I am new to the personal finance sphere and discovered my educator 403b with Corebridge has a weighted expense charge of 1.6215. I contribute $1000 per month and have an account balance of $200,000 with a 70/30 stock/bond mix of funds.
My question is what should I do about the outrageous fee-heavy 403b? Stop contributing and move the $1000 per month to the brokerage account or is there another recommendation?
When I retire, I look forward to rolling the 403b into an IRA and working part-time earning $24,000 annually.
Thank you.
Terry Says
The first thing you (and other employees) should do is COMPLAIN. Loudly!
For example, show the administrator of the plan this article:
https://www.plansponsor.com/fresh-excessive-fee-erisa-complaint-lodged-403b-plan/
It is based on excessive fees. There are more like it. The PlanSponsor.com is full of information on this issue.
On a personal basis, if they are matching your contribution in any way, don’t stop — even though the fees are excessive. But do make use of any other opportunities for which you qualify, including a Roth IRA (based on income) and a non-deductible after tax IRA.
AND, you can always save more on an after-tax basis! Or perhaps, make deposits into a combo Life/LTC policy. Read this: https://www.terrysavage.com/long-term-care-insurance-the-latest/
