I'm a teacher. Which is better for me, a 401(k) or 403(b)? What is the difference? From whom do I get these plans?

401(k), Asset Allocation
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January 2017
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The structures of the two are similar. I used to work with a lot of teachers, my sister is a teacher in the Minneapolis area. Considering most 401(k)s don't offer individual stocks or options, for practical purposes, they are often the same. It is up to your school to choose a plan. As mentioned in the Investopedia article, if they don't offer a plan, look at opening your own Roth or IRA. You might want to open one, even if they do.

You can't just set up a plan yourself, like a self-employee person, but you can lobby your school to start a plan. There are many low-cost easy options available today, with great low-cost transparent investment options. I often use Employee Fiduciary or Vanguard when I help clients set up plans. The best investments for most plans are low-cost Dimensional or Vanguard funds.

If you need a contact at Employee Fiduciary, feel free to reach out.

Good luck contacting human resources!

Mark Struthers CFA, CFP®

November 2004
September 2017
January 2017
January 2017