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mattl

How To Get Out Of My 403b(7) With The School Board?

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Hi,

 

I've been working with the school board for about 20years now, and just in the last two years or so, I have started participating in my 403b(7) plan at work.

 

After really taking a good look at the investment options, I don't like what I see based on current market conditions, and was wondering, is there a way for me to transfer my 403b(7) into another account, so I can purchase gold or commodities stocks without leaving my current employer.

 

If I don't transfer my money, I believe I will loose about 75% of my portfolio in the next two years.

 

Thanks!

 

 

Matt

 

 

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You are predicting that you will lose 75% of your money in the next two years> You are a guru. And your solution is to buy commodities and gold?

 

You can only transfer to another financial institution on your approved vendor list. See if you have one that offers a brokerage or self directed account.

 

If I may comment. Certainly we all know the market is heading south but what makes you think jumping to gold or commodities is a refuge? You are a market timer and a performance chaser.

 

If you are determiined to move your money I'd move it to a money market account until you come to your senses.

 

I would also study up on assett allocation. Not that anything is a sure thing in this market but I don't think a 403B was intended to be a ######.

 

 

Respectfully,

 

Tony

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You can only transfer to another financial institution on your approved vendor list. See if you have one that offers a brokerage or self directed account.

 

 

Can this be done while I'm still employed with my current employer (school system)?

 

 

Thanks.

 

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If you are planning to leave your current employer than once you leave you can roll it to an IRA choice of your own, so if you plan on leaving do it after you seperate from service. Just get a rollover form from the company you want to roll your money into.

 

If you plan on staying with your employer you can (usually) transfer your money to another approved vendor that is on your choices list using a transfer form. You won't be able to chose beyond the approved

list your employer has established. This is a mjor limitation.

 

Be careful as you may have surrendar fees involved. Check out all details before proceeding.

 

 

Also, I don't want to give you false comfort but many many folks are selling out of their funds out of a fear of collapse and loss of money. But, be aware that once you sell and move to a different harbor you are pretty much sealing the deal that your money is lost.

 

I am of the thought that the market will eventually turn around and you might be better off holding on to what you have, stopping new contributions, and put new money in a treasury money market until you are feeling better about this market.

 

At that point start working on a conservative assett allocation. Slow and steady wins the race not speculation and guessing what the next ###### area will be.

 

Hope I've helped. I've made all the mistakes so I not just shooting from the hip. I'm still learning.

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No - what you want to do is not allowed.

 

I believe that 403(b) Plans are (by Law) limited to investment offerings of annuities or mutual funds. Gold coins, commodities, gold stocks, commodities stocks - all of these are not permitted investments. These could be used within a mutual fund or annuuity that is a plan option.

 

If you do not believe your 403(b) provides investment options that make sense for you, then I'd just pay the tax on income and invest without the limitations of the 403(b) plan.

 

As to the wisdom of your investment tactics, that is really a separate issue.

 

Good day & good luck!

 

DC

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