Are you aware of how much your 403(b) plan may be costing your employees? In this blog post, we will explore the potential financial drawbacks that your employees may be facing and offer insights on how you can optimize their investment opportunities. Discover ways to ensure that your employees are not paying a high price for their retirement plans – read on to find out more.
Is Your 403(b) Costing Your Employees Big?
Introduction
If you’re an employer offering a 403(b) retirement plan to your employees, it’s crucial to understand the potential costs involved. A 403(b) plan can be a valuable benefit for your employees, but if not properly managed, it can end up costing them big. In this article, we will delve into the differences between non-annuity and annuity 403(b) plans and explore the potential risks and benefits associated with each.
Non-Annuity vs. Annuity 403(b) Plans
Non-Annuity 403(b) Plans:
- Non-annuity 403(b) plans are designed to provide employees with a range of investment options, including stocks, bonds, and mutual funds. These plans offer greater flexibility and control over investment choices.
- They allow employees to diversify their investment portfolio, mitigating risks associated with investing in a single asset class or market.
- Investors in non-annuity 403(b) plans have the potential to earn higher returns compared to annuity plans, as they can take advantage of the growth potential of the stock market.
- However, it is essential to keep in mind that investing in securities carries a risk of loss, and past performance is not indicative of future returns.
Annuity 403(b) Plans:
- Annuity 403(b) plans, on the other hand, offer employees a guaranteed income stream during retirement.
- These plans provide a fixed payment amount to retirees, which can be beneficial for individuals seeking a consistent income.
- Investing in annuities typically involves purchasing an insurance contract, which can be expensive and may have surrender charges associated with early withdrawals.
- Additionally, annuities may limit investment options and growth potential, as they are often tied to a fixed interest rate or predetermined income stream.
The Importance of Retirement Education
While both non-annuity and annuity 403(b) plans have their pros and cons, it’s crucial to educate your employees about the potential costs and benefits associated with each option. Here are some key points to consider:
Connect with Fisher Investments: As a retirement plan sponsor, you can help your employees make informed decisions by providing them with access to resources like Fisher Investments. Fisher Investments offers retirement planning advice and tools that can assist employees in understanding the differences between non-annuity and annuity plans. They also have a YouTube video featuring a retirement specialist discussing the nuances of 403(b) plans.
Social Media Connect: Encourage your employees to connect with Fisher Investments on various social media platforms such as Facebook, Twitter, LinkedIn, and Instagram. Following Fisher Investments will provide them with valuable insights and educational content regarding retirement planning.
Ken Fisher’s Expertise: Ken Fisher, the founder of Fisher Investments, is a renowned investment professional. Employees can benefit from his expertise by following him on social media platforms like Facebook, Twitter, LinkedIn, Instagram, and even TikTok. His insights and market commentary can help employees stay informed about the latest trends and developments in the investment world.
Conclusion
In conclusion, it’s essential to educate your employees about the potential costs and benefits of both non-annuity and annuity 403(b) plans. By providing access to resources like Fisher Investments and connecting with them on social media, you can help your employees make informed decisions about their retirement savings. Remember that the information provided is the general views of Fisher Investments and should not be considered personalized investment advice. The opinions expressed are subject to change without notice, and it’s always recommended to consult with a financial advisor for specific investment recommendations.
