On Your Side
The Teacher Turned 403(b) CrusaderDan OtterAlbuquerque
(MONEY Magazine) – Over the nine years Dan Otter taught grade school, he grew increasingly concerned about how few of his colleagues participated in their 403(b) plan, a 401(k)-like plan for nonprofit employees, and about the poor investment choices they had. He was particularly outraged by the hard sell they got from insurers peddling the plan's high-fee annuity options. So in 2000, Otter and a colleague founded 403bwise.com to educate nonprofit workers about 403(b)s and offer unbiased information about their investment choices. More recently Otter helped persuade the IRS to impose new rules, due to take effect in 2008, that should require better disclosure about 403(b) plans. In the meantime, if you have a 403(b), Otter urges you to sign up (only two out of five public school teachers do), steer clear of high-fee options and lobby your employer for low-cost choices if none are available (often the case). "We don't make enough as teachers," Otter says, "to be paying 2.5% for our investments." ...First, hit spelchek 84% of execs say they wouldn't hire a job candidate with one or two typos on his résumé, reports an Office Team survey... |
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