Whatever your investment philosophy, you should never put money in an investment you don't understand. h��Tmo�:�+����w'�&$�EZתa�$ć;���c�>\E�����c+CQ�: *$� ��hI8�hE����`�bCx�{@$���E^��6]X. It's up to you to make sure you'll have a comfortable retirement. I naively didnt realize there was such a discrepency in fees. Doctors, nurses, and non-medical staff alike benefit from MetLife's experience and dedication to your employees. Money market mutual funds can only be invested in certain short term, high quality investments issued by the US government, state and local governments, banks and blue-chip companies. Money market mutual funds are a relatively low-risk mutual fund investment that offers lower returns. Also, many Americans are living longer, healthier lives and may need a bigger nest egg in their retirement years. You should evaluate the performance and cost of several options before making a decision. Fixed Interest Annuity offered by MetLife Life Insurance Company, 200 Park Avenue, New York, NY 10166 Mutual funds offered by MetLife Securities, Inc., 200 Park Avenue, New York, NY 10166][Form 1][MET FENRAP][02/01/10 ][Page 1 of 18][TT34][/196551230][A06:012710 Participant Enrollment … These frequently asked questions and answers provide general information and should not be cited as authority. 3 No investment strategy can guarantee a profit or prevent a loss. I don’t want to risk any of my principal. Your choices may include stock, bond, or money market funds. * As of the close of the NYSE on 10/4/13, no new group sales permitted. Brokerage Fee Other Fees MetLife 403(b) and 457 $0 $0 0.00% - 0.25% $0 Admin Fee 0.60% N/A 0.05% - 1.23% $75 origination fee; $50 annual fee $0 $0 N/A N/A $0 VALIC 403(b) and 457 $0 In-service transfer to another vendor lesser of 5% of premiums received over 5 years (10% free out per year without charge) 0% charge upon separation of service 0.0% - 0.25% (Only applies to Ariel … Fill out, securely sign, print or email your metlife 403b withdrawal form instantly with SignNow. I would like a combination of high-risk investments and low-risk investments. Confirm the origination date of the plan and the surrender time horizon, if you are free and clear then rollover the plan to an IRA. This Department of Labor link provides a good overview on what you should know about your retirement plan. They most likely will not have the same performance experience as any publicly available mutual fund. MetLife is one of America’s largest insurance providers and has been in business since 1868, making it one of the oldest insurers as well. 403(b) & Roth 403(b) Supplemental Retirement Plans Fee Disclosure. Your employer's 403(b) plan will allow you to contribute up to a certain percentage of your before-tax pay. Loans. The MetLife Fixed Account is a FIXED ANNUITY issued by Metropolitan Life Insurance Company on Policy Form G.4333-13, which guarantees your principal and interest. h�bbd``b`:$�� ����@�\qD|�A/�`]$��s/��j Contributions to a 403(b) plan will not reduce your Social Security benefit. Your employer may elect to match all or a portion of your contribution. 401(k) plans, on the other hand, are provided by employers engaged in for-profit businesses. The current MetLife insurance companies do not sell individual annuities or life insurance to individuals. bill. Purchase of a primary residence, college tuition or medical expenses may be considered hardship situations. If they don't perform well, you may lose not only any earnings you've made, but even some of your principal. Whatever you choose, remember that you will pay ordinary income tax on your withdrawals; so, taking a lump sum may not be the best way to go in many cases. 4 Other fees and charges apply. The fees on the current 403(b) can be drastically reduced. If you are in a twenty percent tax bracket, you will pay $20 less in taxes every month, so your $100 investment would save you $20 in current taxes. Aggressive Growth mutual fund portfolios include stocks of start-up companies, smaller businesses or firms in high-risk industries. http://www.dol.gov/dol/topic/retirement/index.htm. They're designed to help you hedge your bets—even if the share price falls, dividends may offset the loss. No, I didn’t move between custodians. 403(b) plans can help you save the money you'll need. A custodial account is one where an agent, bank, or other financial organization holds your account for you. MetLife has not endorsed this r… Additionally, if you are age 50 or older, you are allowed to make "catch-up" contributions. Returns reflect deduction of fund expenses. That risk will vary with the investment decisions you make. It's wise, before you change your 403(b) plan, to review your options with a benefits specialist. You will choose where to invest your money from among the vendors listed by your employer. Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Your 403b plan might be better than others but you will need to ask in order to know with certainty what the associated fees, charges and costs are. Call the 403b company directly using the 800 number on your statements. Remember that the key to maximizing your 403(b) contributions is to start early and contribute as much as you can. Re: Which 403(b) company is the least horrible? We have calculated that each participant is paying an average of 2% in AUM fees annually (1.25% annuity fee + .75% ave fund fees). To help determine where your tolerance for risk lies, review the statements at right. Tax law is subject to interpretation and legislative change. These loads may be waived if your contributions are made through your plan account. That is, you are allowed to contribute extra amounts over and above your before-tax 403(b) contribution limit. Variable annuities. With an annuity, you could receive regular payments for a specified period or for the rest of your life. Many mutual funds have "loads"—either front or back-end charges that you pay when you contribute to the 403(b) plan or when you withdraw amounts from your mutual fund custodial account. Generally, the variable annuity contract will offer a range of investment or funding options from which you may choose. Although the investment options in a variable annuity contract may have names, investment objectives, and management that are identical or similar to publicly available mutual funds, they are not those mutual funds. * Variable annuities yield a return that varies with the success of the investments you choose, from among those made available by the insurance company under the variable annuity contract. Both are MetLife companies. On the other hand, inflation may erode the earning power of a fixed-rate instrument. MetLife Fixed Index Annuity Variable Annuity Investment Advisory Services Mutual Funds MetLife (FC) Fixed Index Annuity Variable Annuity Investment Advisory Services Mutual Funds National Life Group (LSW) 1-800-732-8939 NY Life Ins. Note however, your Social Security (FICA) taxes are based on your gross income, notwithstanding any deferrals. Is it necessary to fill out form 15G to withdraw PF? Stock prices fluctuate for a wide range of reasons, and stock mutual funds are subject to the same market risk as stocks. Text may be reproduced with written permission only. Union!City!BOE!403(b)!Plan! Need help? Mutual Funds 1-800-835-7305 *Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Finding the right company to manage your 403b is just the beginning. Top. Not all stock mutual funds are the same or have the same level of risk. One has been filed against excessive fees in a university’s 401(k) plan. www.403bwise.com Your employer's 403(b) plan will most likely offer you a variety of investment choices. Do they have unusually high fees? I am confused on the highlighted part. This is really, really bad, and you should avoid these at all cost (pun intended). In many instances, Social Security will not provide you with as much money as you were earning before you retired. Government bond mutual funds can invest in U.S. Government, state government, or local government bonds. Review it when you experience changes in your life, such as when you get married, divorced, or have a child. Who is eligible for a 403(b) plan? A slight increase in fees can substantially reduce the growth in your account which will reduce your income in retirement. h�b```f``�e`a`�c`@ �+s\`8��_P�:CEH�QD��·B3��(5 ���F f��` b�Z �b`;6��A,��ϰ����ՆN�������������A���I�˹%�vq�10���y \#� The amount of fees varies greatly depending on the product. monthly basis. If you can’t find an answer to your question, please don’t hesitate to reach out to us. They are not generally recommended as investments for 100 percent of your retirement money unless you are very close to retirement age. Information about the MetLife Fixed Account was furnished by Metropolitan Life Insurance Company, New York, NY 10166. In the past two weeks, eight lawsuits have been filed against large universities concerning excessive investment and recordkeeping fees for their 403(b) plans. Your earnings are tax-deferred. Growth and income fall in the middle of the risk spectrum for stock mutual funds. And regular principal and interest payments must be made. There are specific exceptions. Annuities may be fixed or variable. Check with your tax advisor regarding tax rules that may apply to you. To learn more about the impact of fees, and the different types of fees please refer to the Explanation of Fees piece located in the Help & Resources. Many annuities, however, allow participants to switch investment options; e.g., to move a portion of your 403(b) account balance from a stock index funding option to one that invests in growth stocks. The year-over-year growth in 403(b) plan assets of these major players is presented below: How do I fill this out? … %PDF-1.5 %���� They won’t be able to answer your questions clearly enough, most likely. The variable annuity contract offers a variety of investment options. Instead I waited out the 12 years in one to avoid surrender fees and in the other, I had front-loaded fees so I could stop contributing at any time. 403(b) Hardship Distribution Request Form This form may be used if you are an active employee and you wish to request a distribution due to a hardship. Growth and Income mutual funds generally invest in companies believed to have growth potential and a solid dividend payment record. When we set up the accounts we knew that the fees weren’t optimal, but we also decided that with the employer matching they offered, plus the opportunity to move $17,500 out of our taxable income, that it was a smart move. Now you have to find a qualified financial advisor to assist in choosing the right investments. This is a review, not a recommendation to buy or sell a variable annuity. You are permitted to leave the money in your annuity contract or 403(b) custodial account. Importantly, this fee difference gets much more extreme if you choose anything other than the three Vanguard choices in MetLife. MetLife Fixed Index Annuity Variable Annuity Investment Advisory Services Mutual ... including flat fees, fund expense ratios, etc., for investing $10K in an S&P 500 index fund?" Any discussion of taxes in this article or related to this booklet is for general information purposes only and does not purport to be complete or to cover every situation. http://www.dol.gov/dol/topic/retirement/index.htm The IRS permits you to borrow money from your 403(b) accounts. Growth mutual fund investments span a broad range of industries, and may or may not pay dividends. 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