Do you invest in 403B plans, IRA, or Roth IRA accounts?
I hope you do, because they are truly phenomenal vehicles to enhance your retirement. It took me a long time to figure that out but, seriously, there are not many other options to see your money multiply over the years.
My own misleading reality
For a long time I resisted the idea of investing in my 403B plan because I thought of it as a scam. Corporations luring you to put your money in and then playing some financial tricks like crashing the economy and leaving you with a depleted account.
It took me a little bit of work researching through books and podcasts on the subject to curve my instincts.
First of all, it is important to address that saving in a tax deferred account such as 403B/401K is not a “get-rich-scheme.” That is the same mindset as people who drink shakes hoping to conquer a sculpted figure.
403B plans are accounts that allow you to save money without paying taxes. In other words, you have the first turn at your own money and whatever is left, is what you will use to pay your federal and state tax.
That is what is called a tax deferred account. Taxes on the growth of your money are deferred until the end when you start taking some of the money out. However, there are strategies to minimize the damage.
But beware, there are some predatory companies tapping into this. Now more than ever, because many districts have decided to hand out the management of OUR plans to the so called third party administrators or TPA for short. Are you dealing with a TPA? Are you handing your money out to one the most predatory companies in the business?
More on this tomorrow…