Like many other educators, high school science teacher Robert Curtiss of Dearborn, Michigan, thought he was doing the right thing by investing in his school district’s 403(b) retirement plan. Then federal regulators charged the company handling Curtiss’ investments with fraud.
In July 2022, the Securities and Exchange Commission said Equitable Financial Life Insurance Co. had misled investors — mostly public school employees — about what their investments cost. Equitable often issued quarterly statements showing $0 in fees, when in reality the expenses were much higher, according to the SEC. Equitable agreed to pay a $50 million civil penalty to harmed investors.
After hearing about the fine, Curtiss learned that his retirement investments were costing him two to three times what a typical 401(k) investor would pay. Getting his money out would cost even more: the investments, known as variable annuities, had surrender charges of 5% to 6%.
“I felt so frustrated,” Curtiss says. “If I would have known sooner, I would have never put my money there in the first place.” In my latest for ABC News, learn why you might want to reconsider that 403(b).
Liz, I’ve had my 403b for 30+ years. I am a retired teacher. I retired in June 2018. I apparently have a Surrender fee if pulled out before 7 years. I currently have the money in fixed interest of 3% (based on when I opened it…I think that’s what they said). I’m not sure how to move it to avoid surrender charges, however, most of the money is more than 7 years invested. This article concerns me – any suggestions on what to do or how to move? Would you recommend waiting until the 7 years from my last deposit is over? Any suggestions would be appreciated.
You’ll find a lot of helpful information at the site I mentioned, 403bwise.org. It also has an active Facebook presence.