Links of the Month

403bwise.com

This month, we’re going to eschew my fondness for financial academic arcana and help out some of my favorite people—teachers. Besides being overworked, overstressed, underpaid, and often disrespected, it is starting to dawn on these folks that for years they have seen the short end of the deal in yet another arena—their retirement plans.

While some teachers benefit from well-run defined benefit plans, even more find themselves in one of the dankest, foulest-smelling cellars of the financial world—the 403(b) plan. School districts love ’em—they require no plan document, no educational effort, and almost no administrative support. Who fills this gap? Usually a motley crew of small-time advisors, broker-dealers, and even moonlighting colleagues peddling the most ghastly assortment of insurance products and B-shares imaginable. (And just who allows this to happen? Think free skybox seats and nights on the town for school administrators and union reps.)

Are you a teacher who has one of these awful plans and worries about a retirement diet of Little Friskies? Are the wonderful folks who teach your kids in this boat? Do you or they even know they have a problem? Log onto 403bwise.com and find out about all the nifty tricks now at your disposal for identifying, fixing, or escaping a bad plan. And if you’re a little rusty on the basics of retirement planning and investing, they’ll help you out there too. Need a speaker for your retirement group? A model plan? They just may be able to help you out. They’ll even make you laugh.

My favorite maneuver: the 90-24 transfer which enables a participant to periodically sweep out his money-market fund (which usually doesn’t carry a load, even in the worst of plans) over to Vanguard or TIAA-CREF. If need betake a look at their sister site, 457bwise.com, as well.

Terrance Odean's Streaming Lecture

Terry Odean's marvelous research and lecture style need no elaboration here. You'll first have to go to his Web site, then click on the "Streaming Video. . ." link. You have my money-back guarantee—you will be entertained!

Copyright © 2004, William J. Bernstein. All rights reserved.

The right to download, store and/or output any material on this Web site is granted for viewing use only. Material may not be reproduced in any form without the express written permission of William J. Bernstein. Reproduction or editing by any means, mechanical or electronic, in whole or in part, without the express written permission of William J. Bernstein is strictly prohibited. Please read the disclaimer.