Don’t be a sheep. Don’t buy into the idea that a 403b that will take care of you in retirement. If you’ve been diligently putting money into your account you’ll have your nest egg, but it may not be worth what you think.
What if you get to retirement and the stock market tanks? Think it can’t happen to you? Talk to one of the Baby Boomers who had their retirement dreams eliminated or put on hold by the great recession! Many of them saw their 403bs lose half their value. It is pretty disheartening to work your whole life and then see your nest egg disappear just when you need it most.
For most people the prevailing logic is, invest in the market, over time you will come out ahead. They are like sheep, blindly trusting their “Investment Advisor.” They trust their advisor because the market is complex and they don’t know what else to do. I’m not being critical, I feel the same way. The market is complex. I rely on my “advisor” and I’m sure he will do his best to help me invest my money wisely BUT…he has no control over the market!
I don’t like putting my money into investments that I don’t understand and I have no control over. That is why I have invested only a portion of my retirement savings in 403bs.
What if you took a portion of your money and invested it in something else, like real estate or a small business? Sure there is more work involved, BUT it is easier to understand AND you have more control over it! It also provides income for you now, not years or decades from now.
I’m not saying don’t fund your 403b, I’m saying fund something else too. You don’t want to be one of those people that get to retirement and then realize they aren’t prepared! Follow the advice of author Robert G. Allen and create “Multiple Streams of Income!”