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Insurance contracts and mutual funds are the customary invesment choices for 403(b)'s. Can I shares be put in aplan as well?

 

I don't know of any plans that offer individual shares of any kind; I believe that's a function of the internal revenue code, but I wouldn't swear to that. Next step from i-shares is probably index funds, which should be available in most 403(b) plans.

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I-shares are index funds. They are Exchange Traded Funds and I know of a least one company that is offering them in a 403(b)7 distributed by fee-based/only advisors. I do not know if this conforms with the IRC and am checking in to this - I will let you all know when I find out.

 

Warm regards,

 

Scott

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Too many people make the mistake of buying an ETF as though they were buying a mutual fund. They merely decide to order on a particular day at the going price.

 

However, ETFs do not trade like mutual funds that are priced only once at the end of the day; ETFs are priced throughout the day. And sometimes, share prices swing by 3%, 4% or 5% in a single trading session. (Some have found the average daily range of the Nasdaq 100 (QQQs) to be more than 5%!)

 

You must be active and awake when you buy and sell sector ETFs. You're looking for an auction price in the marketplace that meets your personal trading criteria. Pick your price that you want to buy at and use a limit order, not a market order.

 

 

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