I did some research on 403(b)s last night for a different librarian friend (funny, that). My main concern about investing in a 403(b) is the type of investment you get to put it in. If Krudita can pick a nice low-cost stock fund, then investing through a 403(b) is great. But if her only options are annuities, or variable annuities, I'd be leery of it. Very leery. One particular thing to check for is something called "surrender charges". With surrender charges, if you decide you don't like your investment and switch it to something else during the first several years, you can get hit with whopping great penalties, as much as 8%. (!) I don't like annuities for other reasons, too, but I think I've said enough to make your eyes glaze over enough already. :)
If you decide you don't like Krudita's investment options through the 403(b), but you do think the tax advantages make it more attractive than paying down your debt, then you can always get an IRA through the provider of your choice.
If you want more specific advice, based on, maybe, your ACTUAL finances instead of numbers I pulled out of my ... er ... hat, feel free to email me directly. :) I'm at the same email address still. I can leave it in your LJ if you've lost it. :)
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
timeasmymeasure
Second: 403(b)s
Date: 2003-01-11 02:09 pm (UTC)If you decide you don't like Krudita's investment options through the 403(b), but you do think the tax advantages make it more attractive than paying down your debt, then you can always get an IRA through the provider of your choice.
If you want more specific advice, based on, maybe, your ACTUAL finances instead of numbers I pulled out of my ... er ... hat, feel free to email me directly. :) I'm at the same email address still. I can leave it in your LJ if you've lost it. :)