Can anyone give me some info that is helpful or questions I should ask before the meeting about this tommorrow? I was looking to put in about $150 every paycheck.
2007-10-10 15:41:43 · 4 answers · asked by fyrechick 4 in Business & Finance ➔ Personal Finance
Make the investment. There is a concept called the 'time-value of money.' In simple terms you make more money even if you are investing less if you have more time.
For Example: If you were to put $500 a month away at an average interest rate of 8% you would have about $1.14 million dollars in 35 years. If on the other hand you didn't start investing the $500 until you are 40, you will only end up with $500,000.
Check out this web site for a good primer on how money works in investments:
http://www.investopedia.com/articles/03/082703.asp
This web site will give you the same information but in a little easier to read format. The page in this link will show you how to calculate the Future value of an investment over a fixed period at an assumed interest rate.
http://www.tvmcalcs.com/tvm/regular_annuity_fv.htm
As for which investments, look for the mutual funds with the lowest costs. All mutual funds invest in the same stocks, so the only difference is how much the management company pays themselves. The more they pay themselves the less gains you have in your account. This can add up to many thousands over the life of the investment.
If you are a newbie, look for a diversified fund. One that invests in a broad range of stocks and bonds. This way you will have a better chance of making money even in a down market.
You need to educate yourself about investments. Many times the investment company that is contracted with your districts 403b offers investment seminars or on-line classes that will help you make smarter decisions about where to put your money.
Hope this helps
2007-10-10 16:57:35 · answer #1 · answered by Dr. Wu 3 · 0⤊ 1⤋
You are doing the right thing for your future retirement. You will be offered several funds to invest into. What you want to do is research each funds and select at least three with the best return. Monitor your investment at all times so that you can switch funds if the market changes. Your employer will match your contributions and the best part is your salary are taxed after the contribution is deducted. Good luck and may you retire rich.
2007-10-10 15:54:05 · answer #2 · answered by Goodhead 3 · 0⤊ 0⤋
This might help. They are good plans. Especially if they match your contributions. Mutual funds are the best. If its a variable annuity beware. Those have high fees. If thats the case you may be better off contributing up to the match and then opening an IRA or investing elsewhere. Visit with the representative about your allocation and risk preferences.
2007-10-10 15:57:54 · answer #3 · answered by jeff410 7 · 0⤊ 0⤋
sure. 403b's are large the form to defer much greater taxes and to construct up a competent nest egg for the destiny. once you're making a contribution to the 403b the money is taken in the previous taxes, leaving extremely much less for Uncle Sam to tax you on.
2016-10-21 23:58:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋