Teachers Are Getting Schooled When It Comes to 403(b) Plans: Ritholtz's Isolas

The video discusses the issues with 403(b) retirement plans for teachers, highlighting the lack of fiduciary responsibility and high fees compared to 401(k) plans. It explains the drawbacks of variable annuities and the complexity of choices available to teachers. The importance of education in understanding investment options and fees is emphasized. Potential solutions include moving assets to low-cost options like index funds or ETFs. Legislative challenges in reforming 403(b) plans are also discussed, with a focus on the need for fiduciary rules.

What are the main differences between a 401(k) and a 403(b) plan?

Why are variable annuities considered problematic for teachers?

What role does education play in helping teachers understand their retirement options?

How do high fees impact the ability to accumulate wealth for retirement?

What legislative changes are suggested to improve 403(b) plans?