I am still grappling over whether or not to switch to mainly investing in my 403b. I do not make enough money to add $18,000 to my 403b and $2000.00 per month to my brokerage. Adding $2000.00 per month to my brokerage has created a nice increase in my portfolio value. By the end of the July my portfolio grew $7331.04 and my net worth increased $9988.21! This a nice increase for having only invested $2000.00 into my brokerage. I have smaller investments placed elsewhere but the $2000.00 is the main bulk.
So this is why I am hesitant to forgo adding the majority of my income to my brokerage. I have still not come to terms with my 403b and the “funds” that it offers. I prefer stocks over funds and believe that my brokerage and roth ira portfolio would grow much faster than the funds offered through my 403b.
My 403b is currently invested in a very conservative fund. More aggressive funds are offered but I have issues with some of the companies that comprise them. I have picky beliefs about certain practices such as animal testing and oil drilling. I find it difficult to invest in companies that involve themselves with these practices so I try to steer clear of them as much as possible.
There are only a small number of funds offered by my 403b retirement company so my choices are limited. I feel stuck. I would like to have more to choose from and do not understand why the offerings are limited. I would much rather invest in single stocks. To my surprise, my 403b retirement company offers single stock investing… but I would have to sign up with Charles Schwab… and pay more fees… so I do not know if it is worth my time. But I also do not know if I can just plunk my money down into a Vanguard index fund and forget it because my conscience fights me. So, at this point in time my 403b endeavor is still a work in progress.
I value the 403b because of the tax savings. At this present time, I need to give almost half of my paycheck to make the full 2016 $18,000 contribution. I will halfheartedly contribute 47% of my income to my 403b in the month of August but I do not expect to see the same type of returns as I would see in my portfolio, as long as the stock market does not crash, because it is not invested in an aggressive fund. I obviously need to research more…
These are some pictures that I took today. I value my Omega juicer because I can juice herbs like ginger. Ginger is one of my all time very most favorite things on the planet earth to juice. It is medicine. This juice is made of ginger, pink grapefruit, and granny smith apples.
I also value green medicinal herbs like the rosemary seen below. Having these herbs and juices on hand are true wealth to me because health is true wealth and these are the best medicine.
August 2, 2016 at 6:38 am
I struggle with the same decision you have. Do I fully fund my 401k and be bound to a few index funds, or fund personal account that give me full control. It’s a tough decision.
August 3, 2016 at 4:08 am
Hi, thanks for your reply. It is very tough, I need to do more research and hopefully make the best of it. 403b/401ks are good because I can save more money using them but feel that I am also limited by using them. Stay tuned…
August 16, 2016 at 8:33 pm
Hi, I just came across your blog and have read the past 3 or 4 months posts. You are really doing great! One thing you might figure out on your 403b is, what kind of tax savings could you create by maxing out your contributions vs. continuing to invest in your brokerage account and paying tax on the dividends you receive from it.
August 17, 2016 at 6:29 am
Hi, thanks for the reply, I appreciate it.
I think my tax savings are around $5000.00 annually but that is a rough estimate, I need to spend more time figuring this out.
I have reverted back to just contributing to my brokerage account, I am currently adding very little to my 403b. I keep flip flopping on this issue for various reasons…
Take care and stay tuned.
September 6, 2016 at 10:46 pm
I love that picture of the thermometer. Also agree with you that true health is true wealth …
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September 7, 2016 at 7:39 pm
Thank you, it has been hot here, 93 again today.
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