You might disagree with me but hear me out on this.
403b retirement plans are much like standard 401k plans in the way they are set up and taxed.
403b plans are severely limiting and the returns are generally pretty low.
If you want to maximize your returns and have more control over your account, you should consider rolling over to a self-directed IRA.
Here are 5 big reasons why this is something to consider.
1.
403b retirement plans do not have tax-advantages.
They are set up like traditional accounts, meaning that the contributions are tax-deductible but your earnings and withdrawals are taxed.
This means more paperwork and generally more taxes.
If you think you are going to be in a higher tax bracket when you retire or if you expect tax rates to be higher, your best bet would be to rollover your 403b plan to a self-directed Roth IRA.
Contributions to Roth IRAs are taxed but the earnings and withdrawals are tax free.
2.
403b plans are severely limited in terms of what assets you can hold.
They are generally limited to mutual funds and annuity contracts.
With a self-directed Roth IRA you have a much wider range of options and freedom to choose the investment venues you prefer.
This means you have more opportunities to increase your returns.
3.
With 403b retirement plans, you do not have the option of investing in real estate.
Real estate is the best investment option because it is stable, low-risk, and lucrative.
There are companies out there that are set up to help you self-direct your account and they can help you make all the right investment choices.
These companies can guarantee to double your returns or pay the difference.
They will most likely even triple or quadruple your current rate of returns.
Real estate is stable because there will always be a high demand for it and it is insured against common forms of loss like natural disaster.
Furthermore, real estate tends to increase in value over time.
4.
You do not have ultimate control over a 403b plan.
Your account manager will generally keep you in the dark and you will only know what is happening in your account when the quarterly reports come in.
Since your employer controls the account, they will inevitably make choices that benefit them more so than you.
If you want complete control over your investments and a say in what happens to them, roll your assets over to a self-directed IRA.
With a self-directed IRA, you will have an account custodian help you but you will have the ultimate say in what goes.
Your account custodian will simply listen to your wants and act in your best interest so you don't even have to be an experienced investor.
With no extra work on your part, you will be able to sit back and watch higher returns roll in.
5.
403b retirement plans give low returns.
If you want to maximize the returns you are getting on your investments, roll over to a self-directed IRA and invest in real estate.
There are companies that buy up old homes or neighborhoods, renovate them, and re-sell them to working class families.
Because they don't expect unrealistically high returns on the homes, the process only takes 4-6 weeks.
As a result, your money can be invested and re-invested in the same process, giving you higher returns.
Your next step? Take this information and use it as a guide to help you weigh your options.
403b retirement plans simply don't provide a sufficient rate of returns to help you meet your financial goals.
If you want to maximize the returns on your investment without any extra work required on your part rollover your 403b to a self-directed IRA.
By doing so, you will be able to retire in comfort without entering into any risky venture.