Whether your nonprofit is starting a 403 B Plan or you are reviewing your retirement plan investments, having Target Date Funds in the line-up is a good thing. Why are Target Date Funds a good thing in a 403 B or Nonprofit Retirement Plan? At Fairlight, we often find nonprofit employees asking us questions like “Where should I put my money” and “How often do I need to look at my retirement plan”? We also hear Read More
Time to Review Your Nonprofit’s 403b Retirement Plan
For those Chief Financial Officers who may have recently joined a nonprofit organization, you are likely wondering how to choose a 403b plan. As you review the current retirement plan, what are the important facts to know? Contact your Plan Administrator and your Investment Advisor so you can be briefed on the plan. Documents you should have on file for your review are: Summary Plan Description and Plan Read More
Are There Hidden Fees in Your Nonprofit’s 403b or 401k Retirement Plan?
AARP has done several surveys on fees in 401 k and 403 b retirement plans and has noted that 62% of participants are unaware of the fees inside their retirement plans. Why is that? Because the fees are hidden inside the performance of the fund. You know the saying “the devil is in the details”. This idiom refers to a catch or mysterious element hidden in the details. It might look simple at first glance but has Read More
Savings, Investing & Nonprofit 403b Retirment Advice Rarely Changes – So Why Do We Forget it?
Advice my dad gave about 403 B & 401 K savings still holds up today I would regale my friends in college by reading my father’s letters out loud to them as we were getting ready to go out for the night or were procrastinating study time. Sometimes they were three pages typed—harsh words on how I better “shape up or ship out”. After college and early in my career, friends would come to dinner or hear me recount Read More
Nonprofit 403b Retirement Plan Fees Explained
Are there hidden fees lurking inside your nonprofit 403b retirement plan? I recently looked at my husband's retirement plan statement. He is a teacher. I wondered if many teachers are fully aware of the possible fees that may be lurking inside their retirement plans. And then I found fees, not less than 1.5% all the way up to 2% for the cost of the inside his plan. Fund Fees can eat into the overall return that you Read More
How to Choose Your Nonprofit’s 403b Retirement Plan Advisor
How do you Choose an Advisor for a Nonprofit 403 B Plan (or a 401 K Plan)? So why establish a Retirement Plan in the first place? 54% of California private sector employees do not currently own a retirement savings account or participate in a pension. We have a looming crisis. In 2016, California passed legislation requiring employers with more than 5 employees to participate in CalSavers by June 2022. Therefore, Read More
403 B Retirement Plan Rules
“I would like to take an early distribution from my nonprofit 403 b retirement plan so I can quit my job and travel. What are the 403 b distribution rules? What will be the tax consequences if I am unemployed or working free-lance at that point?” Um, what? This was one of the questions I was asked during a financial planning and investment educational session a couple of years ago. Ah, to be in those times once Read More
