403(b) Plans

The IRS named 403(b) retirement plan operates like the 401(k) but is for non-profits. Rules about rollovers and withdrawals may vary slightly, and 403(b) regulation always has the potential for government modification, so check with your organization's investment planner.

Any retirement plan is better than none, and the 403(b) distribution can operate in conjunction with an IRA to help build your retirement nest egg. If you make the maximum contribution to your account and are wise about continuing your investment through thick and through thin, you'll know you're

doing all you can to ensure a comfortable retirement. When you get started, use one of the online calculators to figure out how much you need to start saving in order to reach your goals.

There is a special risk when a company or non-profit employer allows an insurance company to manage the employee retirement plans. Insurance companies have a nasty way of getting what they want, which is often not to the employee's advantage. One example of this is the tax-sheltered annuity, or TSA. TSAs usually don't perform as well as mutual funds. Insurance agencies get rich off annuity plans because investors don't! If you have the option of taking a reasonable mutual fund over an annuity plan, take the mutual fund, which will probably best the annuity because of its diversified holdings. If the organization offers you a choice of investments, don't just take the word of the advisor; read about your options, compare their benefits and pick the best ones based on the information you have and your understanding of safe investments.

Insurance agencies are not investment agencies, although they may control their own mutual funds or other "offerings" such as term life insurance. While investing in an insurance agency is usually a safe bet when it makes up part of your mutual fund, it's not wise to put your livelihood in the hands of insurers who may not have your best interests at heart. When working with any broker, independent investigation is always a smart move for the individual investor. After all, it's your savings.

Big companies like Vanguard work with 403(b) plans., but unless you're involved in choosing a plan for your organization, you may not have much choice.

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How to stick to a household budget
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1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

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