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Money, Business and Finance >> Roth IRA vs 403(b) Annuity
| 4/9/09 11:38 AM | |
kungfugrip
Member Since: 1/1/01 Posts: 1647 |
General question: Which would be better investment for retirement, money into a roth IRA investing in Mutual Funds or 403(b) annuity? Any benefits using the 403(b) over the roth IRA? Details: I already have a retirement acct thru the school that i contribute 7.75% into, school matches that. I'm looking to increase my total retirement to 15%. I was planning on investing the remaining 8% into a roth ira, investing in mutual funds. The school is having an meeting with a 3rd party 403(b) consultant to discuss the 403(b)annuity option. is this going to be a better option the the roth ira? I'm guessing this might be too little info, if so ask and I can try to add info. |
| 4/24/09 9:14 PM | |
panic686
18 
Member Since: 3/18/02 Posts: 11790 |
You can only invest up to a certain amount in a Roth IRA per year. However, it grows tax deferred and that is a huge benefit. The bad thing about both of those is that you will pay a 10% penalty on each of them if you withdraw funds before you are 591/2. If you want an investment vehicle without that 10% penalty then you are better off using a mutual fund. In that case you can invest more efficiently for the near and intermediate future. Where do you live? |
| 4/29/09 9:33 PM | |
|
Worth
Member Since: 9/5/03 Posts: 563 |
You can withdraw all your contributions prior to 59 1/2 from a Roth without a 10% penalty. |
| 8/26/09 11:01 PM | |
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koreviewz
2
Member Since: 11/22/08 Posts: 508 KO-REVIEWS.COM, OWNER |
Ummm, it depends. If the 403b allows for pretax contributions, that is your best bet. But I'm not a huge fan of annuities for retirement investing. They are low yield. It all depends on your age I guess. |
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