Enrolling in Your 403b: June 2021
Part I: Why You Need to Enroll in a 403b
- Save almost $500,000: A 25 year old teacher who invests $100.00 per paycheck for 35 years, and assuming an 8% return, will accumulate almost $500,000 by age 62.
- Your 403b investment grows tax free: All earnings, dividends and capital gains grow tax free until age 70.5!
- It lowers your taxable income: If you earn $50,000 per year and contribute $5,000, you only pay taxes on $45,000, a possible savings of $1,000 a year!
- Pensions don’t come with a lifetime warranty: Three out of five retirees will outlive their pension assets.
- You need a back-up plan: Over 40% of teachers leave the profession before becoming eligible for a full pension.
Part II: Enrolling in a Fidelity or Vanguard 403b Retirement Plan
- Go to the Fidelity Retirement Plan website: https://nbacctopen.fidelity.com/
- Fill in the personal information including Brookline’s Plan #, 50049, and establish an account. (If you have a question, please refer to my completed enrollment form.)
- “Choose Investments:” Option #1 – Help me manage my investments: Select Target Date fund, a mutual fund that is based on your projected retirement year. If you’re 30, the enrollment form default will be the Fidelity Freedom 2050 Target Date Fund. The other option is select I’ll manage my own and select a balanced fund, FBALX, an all-purpose investment fund that contains stocks, bonds and cash.
- Keep a copy of your completed enrollment form for your records.
Part III: Completing a Salary Reduction Agreement or increasing your contribution
TSA Consulting Group
https://www.tsacg.com/individual/plan-sponsor/massachusetts/brookline-public-schools/
Follow Instructions for “Online Enrollment Process”
file:///C:/Users/Admin/Downloads/403(b)-Salary-Reduction-Agreement.pdf
Bob Miller: BEU Financial Consultant – odysseus7@comcast.net
