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Why these teachers' retirement plans aren't making the grade

Why these teachers' retirement plans aren't making the grade

Finance
Andrea Viudez, 37, followed all the rules of retirement savings when she started her career as a middle school math teacher in Hudson County, New Jersey. She joined the school's 403(b) plan, purchasing an annuity from an insurance company representative who hosted a presentation in the teachers' lounge. With every paycheck, Viudez made a faithful contribution of $ 215. In an annuity, savings accumulate on a tax-deferred basis that pay out a monthly stream of income for life once you retire. Annuity contract holders can invest their money in underlying investments that are similar to mutual funds. These are known as subaccount...