Depew Teacher’s 403b Retirement Plan Options

As a Depew teacher, you have access to a 403b retirement plan—similar to a 401k, but with more choices. While having options can be great, it also means more responsibility to choose wisely. Depew offers 11 different providers, which fall into three main categories:

1. Insurance Companies

These providers often offer variable annuities, which may sound appealing but can come with high fees (2–4% annually) and long-term contracts (5–12 years). You typically get 20–50 investment options, but the costs and surrender charges can eat into your returns.

Providers in this category:

• AIG (formerly VALIC)
• Equitable (formerly AXA)
• MetLife
• Voya

Pros: Some income guarantees and insurance features.
Cons: Expensive, limited flexibility, and potentially high penalties for early withdrawal.

2. Mutual Fund Companies

These firms offer a range of mutual funds—diversified portfolios of stocks and bonds. They usually charge a 5.75% upfront commission plus an annual fee of around 1.25%. Investment choices range from 20–100 funds.

Providers in this category:

• Invesco/Oppenheimer
• PenServ/Foresters Financial

Pros: Straightforward investments, decent variety.
Cons: High upfront fees, limited to the company’s own fund lineup.

3. Independent Financial Professionals

These advisors offer more flexibility because they aren’t tied to one company. They can often help you find low-cost, diversified investments—sometimes even no-load mutual funds or low-cost index funds. Fees vary, but they may be more transparent and lower overall.

Providers in this category:

• Aspire - Bentham Wealth
• Orion (L&M Financial)
• PlanMember
• Sgroi Financial
• The Legend Group

Pros: More investment options, potentially lower fees, personalized advice.
Cons: Quality depends on the individual advisor, so do your homework.

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Here's a simplified side-by-side comparison chart of the 403b providers available to Depew teachers. This gives you a clearer picture of what each option offers:

What Should You Look For?

• Compare Fees: Small differences can cost you thousands over time.
• Understand What You’re Buying: Know whether you’re investing in annuities, mutual funds, or low cost index funds.
• Seek Help if Needed: A financial advisor can help you make the best decision based on your goals. Here is what to look for in a financial advisor:
  • Is a CERTIFIED FINANCIAL PLANNER™ professional‍
  • Is a Fiduciary and will sign a Fiduciary Pledge – This means they agree to put your needs ahead of their financial interests.
  • Works with other Depew teachers and understands Depew's employee benefits
  • Transparent about all costs