403b Transfers

This is the last of our 6-part series discussing the basics of variable annuities and mutual funds in 403(b) plans.  We have discovered that many teachers are unaware of the high fees hidden within their 403(b) plans.

But there is a way to change this, and we can help.  The following steps are best undertaken with an experienced advisor:

1. A determination needs to be made of the surrender fees involved in the variable annuity contract that is usually based on how long you have had the policy.
2. Calculation of funds that can transfer out of your policy penalty-free.
3. Research the vendors available in your school district.
4. Begin the transfer/enrollment process to the new vendor.

At NXT Phase Financial, John Carbonara has worked with dozens of Long Island teachers in transferring out of variable annuities into mutual funds, so their hard-earned money works for them and not toward high fee variable annuities.

• The complete series:
  • 1) Intro to 403(b) Plans
    
  • 2) Variable Annuity Contracts
    
  • 3) Variable Annuity Fees
    
  • 4) Variable Annuity Death Benefit (M&E Fee)
    
  • 5) 403(b) Custodial Account - Mutual Funds
    
  • 6) 403(b) Transfers (How We Can Help)
    
• Continue to Teacher Services
  
• Download our free whitepaper "Retirement Questions For Educators" and learn how  you should consider these unique retirement strategy challenges so that you can best prepare to retire on time, and with the income you require.