A GUIDE FOR EDUCATORS

Your 403(b) has homework due. Most teachers never see it.

You've got a retirement account taken straight from your paycheck — but no one ever walked you through what's actually in it. This guide breaks down the four things that quietly decide how much you'll retire with, plus two calculators to see your own numbers.

A Typical 403(b) Report Card

Performance vs. benchmarkC
DiversificationC
Expense ratioD
Advisor / product feesF
Illustrative example based on commonly sold 403(b) annuity products in K-12 plans — not a specific product or fund. Your plan may look very different.
THE FUNDAMENTALS

Four things that move your number more than anything else

Your 403(b) statement shows a balance. It doesn't show you why that balance is smaller — or larger — than it should be. These four factors are where most of the difference lives.

01 — Performance

Chasing last year's winner is a trap

A fund that topped the charts last year rarely repeats. What matters is performance relative to a fair benchmark, over a full market cycle — 5 to 10 years, including a downturn.

Watch for: sales materials that only show returns from a cherry-picked start date.
02 — Diversification

One fund is rarely a full plan

Many educators end up in a single balanced or target-date-style annuity option because it was the only thing presented to them, not because it fits their timeline or risk tolerance.

Watch for: your entire balance sitting in one proprietary fund or annuity subaccount.
03 — Expense Ratios

A "small" percentage is not small

Expense ratios are charged every year, on your entire balance, whether the market goes up or down. A 1% difference sounds tiny — over 25 years it can consume a meaningful share of your growth. See the calculator below.

Watch for: total annual costs above roughly 1% once fund fees, administrative fees, and any insurance "wrapper" costs are added together.
04 — Advisor / Product Fees

Know who's paid, and how

Some 403(b) reps are compensated through commissions built into the product, which can create an incentive to sell a specific annuity rather than what's best for you. A fee-only, fiduciary advisor is paid the same way regardless of which investment you choose.

Watch for: surrender charges — a penalty for moving your own money out of a product within a set number of years.
SEE YOUR OWN NUMBERS

Two calculators. Your salary, your timeline.

These are educational estimates to help you think through your options — not a projection of what any specific investment will actually return. Move the sliders to match your situation.

01

What would I actually contribute?

Estimate your paycheck impact and potential tax savings from a traditional pre-tax 403(b) contribution.

Annual salary$65,000
Contribution rate8%
Estimated tax bracket22%
Per paycheck (biweekly)$0
Annual contribution$0
Estimated annual tax savings$0
This assumes a traditional pre-tax contribution. Roth 403(b) contributions work differently — happy to walk through which fits your situation.
02

What could this grow into — and what could fees cost me?

Hypothetical growth of your contributions over time, compared under a low-cost scenario and a high-cost scenario.

Current 403(b) balance$15,000
Monthly contribution$430
Years until retirement25 years
Assumed annual return (before fees)7%
Low-cost plan (0.3% annual fees)
High-cost plan (1.75% annual fees)
$0

The projected difference at retirement between the low-cost and high-cost scenario — same contributions, same market return, different fees.

NEXT STEP

Want a second set of eyes on your actual plan?

Bring your 403(b) statement to a short, no-obligation review. We'll walk through your real fund options, what you're actually paying, and whether your current plan matches your timeline — teacher to teacher, plain English.

Request a plan review

No cost, no obligation. We'll respond within 1-2 business days.