403b Plan Investing403b plan investing is similar to the 401(K) plan. The key difference is that the 403b plan is available to companies that are non-profit such as educational institutions, governments agencies and similar organizations. The money is invested tax deferred. The gains on the money grows tax free as well. The money is taxed at withdrawal which is upon your retirement. Employees in most non-profits or educational institutions are provided with a Pension. However, the Pension may not be enough for an individual to retire on. The money may not be sufficient to to meet your monthly expenses in the future. You also have to factor in the rate of inflation which is currently at 3%. However, a lot of folks argue that it's much higher since the inflation number does not include energy and food. I know, its amazing that the government does not include these two numbers since this is where we spend most of our money. Investing in a 403b plan will add a little extra cushion to your retirement so if you plan correctly, you should be fine. In the 401(K) section of the site I wrote that contributing to your plan is very important to your future. The same is true about for a 403b plan. Invest in the plan immediately if you're not doing so. Contact your HR representative and make an appointment to fill out the paper work. If you're not comfortable with the process then speak with employees who are willing to help you out. Don't delay in getting the paperwork done, invest for your future now! Once you get the hard stuff out of the way the rest is easy and that is simply contributing to your account. Its important to get yourself organized at home. Setup a file system, file your quarterly statements after you review them. Most plans will also send you little booklets with tips and strategies on investing. Grab the booklet and take it to work, read on the train or bus. After awhile you'll begin to start understanding a bit more about investing. However, it starts with you simply participating in your 403b plan at work. Get started because the mistake that most people make is not starting at all. 403b plan investing can add to your retirement so please take advantage of all the resources you have at your disposal.
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