Depew UFSD Teachers: Your Guide to 403b Retirement Plan Options

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Introduction

As a teacher at Depew Union Free School District, your 403b plan is a key part of building your financial future. With 11 approved providers to choose from, you want to make informed decisions to maximize your retirement savings. This guide breaks down the options into three clear categories and offers tips tailored for Depew educators.

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1. Insurance Company Providers

Providers like AIG (VALIC), Equitable (AXA), MetLife, and Voya fall into this group. These plans:

• Often include variable annuities
• Typically come with higher annual fees (2%–4%)
• Enforce long surrender periods (5–12 years)
• Offer around 20–50 investment choices

✅ Pros: Certain income guarantees and built-in insurance features.
❌ Cons: Higher costs, less flexibility, and punitive early exit penalties.

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2. Mutual Fund Company Plans

Examples include Invesco/Oppenheimer and PenServ/Foresters Financial. These providers:

• Offer access to 20 to 100 mutual fund choices
• Often charge a 5.75% upfront commission plus about 1.25% in annual fees

✅ Pros: Simpler investment structure and decent diversity.
❌ Cons: High fees and limited ability to shop across multiple companies.

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3. Independent Financial Professionals

These advisors act independently and are not tied to any single provider. Options for Depew teachers include Aspire – Bentham Wealth, Orion (L&M Financial), PlanMember, Sgroi Lawley Financial, and The Legend Group. Benefits typically include:

• Ability to access low-cost index funds or no-load mutual funds
• Greater investment flexibility and transparent financial advice
• Personalized service tailored to your goals

✅ Pros: Lower costs, access to a wide range of investments, and custom guidance.
❌ Cons: Experience and service quality depend on the individual advisor—do your due diligence.

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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:

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✅ What Depew Teachers Should Look For

1. Compare Total Costs: Even small fee differences compound over time.
2. Know What You’re Buying: Understand annuity contracts, mutual fund options, and index funds.
3. Work with a Fiduciary Advisor: Prefer Fee-Only Certified Financial Planner™ professionals who legally put your interests first.
4. Plan for Long-Term Needs: Factor in your NYSTRS pension, Social Security, and future educational or lifestyle goals.

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✅ Why Work With a Fee-Only Fiduciary Advisor?

Many Depew teachers don’t realize that not all advisors are required to act in your best interest. That’s where fee-only fiduciary advisors stand apart:

• No hidden commissions
• No conflicts of interest
• Focused on helping you make informed, unbiased decisions
• Integrated advice: 403b, NYSTRS pension, student loans, estate planning, and taxes

Working with a fee-only firm like Bentham Wealth ensures that your retirement planning is based on what’s right for you—not what pays a commission.

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📚 FAQs: 403b Retirement Planning for Depew UFSD Teachers

Q: Do Depew teachers need a 403b if they have NYSTRS?
Yes! While your NYSTRS pension provides a great base, it likely won’t replace 100% of your income. Your 403(b) helps fill that gap with tax-advantaged savings.

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Q: What’s the best 403b option for Depew teachers?
Generally, fee-only platforms that offer low-cost investments (like Vanguard or Fidelity) provide the best long-term value—especially when paired with fiduciary advice.

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Q: Can I switch my 403b provider?
Yes, but be cautious. Some providers charge surrender fees or impose restrictions. A financial advisor can review your current plan and help transition to a better one.

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Q: How much should I contribute to my 403b?
Most advisors recommend at least 10–15% of your salary if possible, but even smaller contributions help—especially when invested in low-fee funds.

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Q: How do I know if an advisor is fee-only?
Ask directly. Look for advisors who are fiduciaries and listed with NAPFA‍. Avoid those earning commissions on annuities or mutual funds.

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🎯 Final Thoughts for Depew Teachers

The 403b plan you choose—and the advisor you work with—can make a significant difference in your retirement outcomes. Avoid unnecessary fees, stay away from high-commission annuity products, and work with a fee-only fiduciary advisor who understands NYSTRS and your school’s plan.

If you’re a Depew UFSD teacher and want a second opinion on your 403b, we’re happy to help.