Fixing Your 403(b): Everything You Need to Know

If you’re facing issues with your 403(b) retirement plan, whether it’s poor investment performance, high fees, or lack of guidance, this guide will help you navigate the process of fixing it.

1. Assess Your Current Situation

Review Your Statements:

• Look at your recent statements to understand your account balance, contributions, and investment performance.

Identify Issues:

• High fees? Poor investment choices? Lack of diversification? Note any concerns you have.

2. Understand Your Options

Investment Choices:

• Familiarize yourself with the investment options available in your plan. Are there better-performing funds you can switch to?

Transfer Options:

• If your current 403(b) isn’t meeting your needs, you may consider rolling it over to another account, such as an IRA.

3. Evaluate Fees

Understand the Costs:

• Review all fees associated with your 403(b), including management fees, expense ratios, and any administrative fees.

Compare Costs:

• Consider whether the fees are reasonable compared to the investment performance. Look for lower-cost alternatives if necessary.

4. Diversify Your Investments

Check Your Asset Allocation:

• Ensure your investments are diversified across different asset classes (stocks, bonds, etc.) to reduce risk.

Rebalance Regularly:

• Periodically rebalance your portfolio to maintain your desired asset allocation.

5. Increase Contributions

Maximize Contributions:

• If possible, increase your contributions to take advantage of employer matches and boost your retirement savings.

Catch-Up Contributions:

• If you’re 50 or older, consider making catch-up contributions to enhance your savings.

6. Seek Professional Help

Consult a Financial Advisor:

• If you’re unsure about how to fix your 403(b), consider consulting a financial advisor who specializes in retirement planning.

Utilize Resources:

• Many employers offer access to financial education resources. Take advantage of these to better understand your options.

7. Monitor and Adjust Regularly

Regular Check-Ins:

• Set a schedule to review your 403(b) at least annually. Adjust your strategy as needed based on performance and life changes.

Stay Informed:

• Keep up with changes in your employer’s plan and any updates to retirement laws that may affect your 403(b).

Final Thoughts

Fixing your 403(b) can set you on the right path toward a secure retirement. By assessing your current situation, understanding your options, and taking proactive steps, you can ensure that your retirement savings work harder for you. Don’t hesitate to seek professional guidance if needed, and make your financial future a priority.