403b Value at Retirement Age
The value of your 403(b).
Expected Withdrawal Monthly
How much do you expect to take out of your Sagewell account each month for expenses?
Sagewell Monthly Savings
You can save hundreds of dollars every month with Sagewell across a variety of different opportunities – from cashback to bill savings to saving on monthly medications. Get in touch with us to learn more.
Detailed Calculations
Annual Rate of Return
The annual rate of return for your 403(b) account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor’s 500® (S&P 500®) for the 10 years ending December 31st 2016, had an annual compounded rate of return of 6.6%, including reinvestment of dividends. From January 1, 1970 to December 31st 2016, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.3% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can’t be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.
One Time Expense Age
If you plan on a large expense, at what age do you think that may happen? Note: you can always just guess, but try to think through any expected large expenses or life events.
One time expense Amount
If you plan on a large expense, what amount do you think that may total? Note: you can always just guess, but try to think through any expected large expenses or life events and how much it may cost.
This might include things like weddings, helping a child purchase a home, moving to assisted living, or unexpected health care expenses.
Annual Inflation
Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising. We’ve set this to an expected default, but feel free to adjust as you see fit to see the effect on your account.
403(b) management fee
This is an annual fee based on the balance of the account.

Frequently Asked Questions about 403(b) and Switching
Why would I switch my 403(b) and retirement banking to Sagewell?
Switching your 403(b) to Sagewell helps you get:
- Drastically lower fees that compound over time, saving upwards of hundreds of thousands of dollars over the lifetime of your account.
- Monthly savings on items like medication, insurance costs, and cashback rewards at your favorite stores.
- Personalized care and protection, and an assigned Sagewell Retirement Advocate to help you navigate your golden years.
401(k) are regulated under ESIRA (Employee Retirement Income Security Act). 403(b) are not.Â
Instead of getting an open market and a fiduciary (legally obligated to work on behalf of a client) you get salespeople, often working for insurance companies.Â
This allows statements so misleading we at Sagewell believe they border on lying, with the real details often hidden in 100 pages of fine print. These same sales staff often poach from teachers’ lounges, providing food and preying upon overworked and underpaid public servants. Lobbying interests have stopped any reform thus far, though the issue is becoming more widely known and acknowledged.Â
How much of a difference would switching to Sagewell really make?
While this can be hard to believe, the difference is often upwards of hundreds of thousands of dollars. You can use the above calculator to see exactly how much of an impact switching to Sagewell can have over the lifetime of your account.
How much do financial fees cost teachers, nurses and others?
The numbers are striking. Let’s take the average 403(b) holder who has been in the market for 35 years, and adding $200 / month into their account.Â
They started at 30, and now at 65 they are ready to retire. If their 403(b) had a 2.2% management fee then (because of the magic of compound interest) their total account would be over $297,000 less, and they would have paid (mostly hidden) fees of over $106,000.Â
Assuming that there are about 5.6 million people eligible for 403(b) this is an enormous loss for our teachers, nurses and other public servants. The difference amounts to over $1.1 trillion dollars that the financial industry managed to bilk. And that is even before taking advantage of monthly savings from negotiated bills, cash back, and more that Sagewell offers.Â
In sum, it can be hard to believe how much money has been lost in financial fees but that’s why we built Sagewell – to help people just like you fight back and thrive in retirement.Â
How does a 403(b) differ from a 401k or other retirement plans?
A 403(b) plan is not covered under Employee Retirement Income Security Act (ERISA).
What are the implications of this?
-
- Unlike the 401(k), there is no auto-enrollment or qualified default investment alternative (otherwise known as a low-cost target-date fund)
- Stringent ERISA fiduciary rules are not mandatory, as they are with 401(k)s;
- Single vendor plans, which would greatly lower costs and simplify matters, are not required in 403(b)s;
- Only high-cost annuities and custodial mutual funds are allowed as investment options
- Prohibited transaction rules don’t apply. For example, insurance salespeople care often hugely incentivized with prizes when selling 403(b)plans; this would result in a lawsuit if done inside a 401(k) plan;
- Employers are not required to send out notices regarding fees paid by participants;
- 403(b) vendors are not required to disclose both indirect and direct fees; and
- There is no standard authority to hear complaints over 403(b) plans and courts have consistently ruled against teachers and other public servants
What type of life situations can a Sagewell account help with?
Sagewell combines lower retirement account fees with monthly savings. Saving money always leaves you in a better position with more options. Among our thousands of members we have supported people in a range of life goals, including:
- Leave more money for your children and loved ones
- Offer meaningful protection against inflation and market downturn
- Retire early to spend more time with loved ones and doing what you love
- Have more monthly budget with which to better enjoy your golden years
- Protect you from being bankrupted by a large, one-time expense
- Help you feel less confused and more in control of your retirement finances
This is the best part of our work BY FAR – helping people like you build the retirement life they want.Â
Why didn’t I know about these fees?
At the top level, it’s because the agents are not incentivised to act in your best interest. In practice:
- Fees are often hidden deep within documents
- Most often deducted daily and therefore not reported as line items
- Sellers are incentivized to hide them, and because they are not fiduciaries they are not required to disclose them
- Because unions are often receiving millions in kickbacks, they are incentivized to hide the fact that advisors are not acting in your best interest
Who benefits from all these fees we are paying on our 403(b)’s?
Unfortunately the unions and the individual sales people are getting the kickbacks, and the states and legislative bodies have been unsupportive of teachers. Â
Just one example: in 2020 the Newport Beach, California owner of Tax Deferred Services, a firm that provides 403(b)/457(b) plan compliance for over 300 California school districts was arrested in what the CA Department of Insurance called a “$4 million securities fraud scheme.”
The courts have ruled on behalf of the financial industry over teachers. In one case a judge said she had no jurisdiction over the dispute because the plan involved is a 403(b) program set up by a New York school district. (Source: https://www.planadviser.com/judge-rejects-403b-kickback-suit/)Â
This is such a rampant, widespread issue that there is a whole podcast dedicated to the topic: http://403bwise.org/burned
We started Sagewell to change all this, and help you thrive in retirement. Get in touch today and learn more about how you may have been duped and how to start recovering your financial freedom.
If everyone else is trying to take advantage of us, why should we trust Sagewell?
- Sagewell is Better Business Bureau certified and works with a trusted partner bank in Choice Financial Group, Member FDIC.
- Sagewell’s CEO, Sam Zimmerman, is building the bank his mom deserves as a personal mission, and his mom is a retired teacher!
- Sagewell is deeply committed to transparency, oversight, and security. We provide real humans, you can really talk to and ask questions of.
What is required to take advantage of Sagewell for retirement?
It’s completely free to set up an account and speak to one of our Sagewell Retirement Advocates about your options. Typically if you already have a 403(b) and are interested in switching, we can help you with every step of the process. Just visit here or our homepage and sign up today to speak to someone who can help.
Is there still risk associated with switching my 403(b) and retirement accounts to Sagewell?
Our job is to help you manage risk and enjoy a comfortable retirement, but in any investment there will always be some risk – based on unforeseen shifts in the market or unforeseen expenses you might incurr. Regardless of your situation it never helps to pay unnecessary fees or miss out on savings!
Sagewell helps by reducing hidden fees and uncovering hidden savings, as well as by offering personalized planning to help you find a plan that matches your lifestyle. Meet with one of our advisors today for a FREE consultation that will help you build a retirement lifestyle and plan that works for you.Â
Can an IRA do anything a 403(b) can’t?
Yes, IRAs can invest in individual stocks and other investment vehicles as well as everything else a 403(b) can invest.Â
Though in general our Retirement Advocates tend to recommend low fee index funds as optimal for most people transitioning.Â
When can I switch my 403(b) to an IRA?
There are several moments in life when you can switch your 403(b) over to an IRA, it is a common occurrence and your Sagewell representatives can help you navigate the process. Some of the common qualifying events are:
- When you reach age 59½;
- Have a severance from your employment;
- If you become disabled;
- If you die (rollover to be undertaken by your beneficiary); or
- Encounter a qualified financial hardship, such as hospitalization or any other kind of financial crisis.
You can find more details on what the IRS considers qualifying events to roll over your 403(b) here. Or call one of our Retirement Advocates at Sagewell, at +1 617-397-3764.
What are the next steps?
Contact us for a completely free consultation in which we will review your situation holistically and help you save and flourish in retirement. You can visit our website or call one of our representatives directly at 704-287-7745.