What It Costs to Invest in Your 403(b)
Fees are generally assessed as a percentage of assets and are deducted directly from your investment returns.
All mutual funds and variable annuities are required to produce a document called a prospectus, which details specific information about investment cost, objective, risk, performance, and operating rules. Ask to see the prospectus before contributing to a variable annuity or a mutual fund. Fixed-annuity products do not have a prospectus. Instead, they have a contract that details operation of the annuity. Ask to see the contract before investing in a fixed annuity.
You can get detailed fee information including prospectuses from the TIAA-CREF website. Log in to your account if you have already enrolled and established a User ID and Password. If you have yet to do this, see the "Enroll Online" information under the Actions to Take tab. Once on the TIAA-CREF site you can access fee information from the "Manage My Portfolio" tab.
Impact of Fees on Return
The chart below illustrates the affect of fees on return.
Total value of investment after 35 years, assuming $250 contributed monthly with an 8% average annual return:
Note: This example is for illustrative purposes only and is not a predictor of any actual investment. Source: Meridian Wealth Management
You can also use the Savings Calculator to see the impact of fees on return.