This is not your workplace plan.
A worksheet for cash sitting outside it — bank, CD, or brokerage cash. Not your 403(b), 457, CalPERS, CalSTRS, or 401(k).
Three places the cash can sit
Leave it at the bank
FDIC insured up to the limit. Liquid. The rate can change whenever the bank decides.
Multi-year guaranteed annuity
A fixed rate for a set term. Not FDIC insured. Early withdrawal charges may apply.
Fixed index annuity
A declared rate, plus optional index formulas. You do not own the index. Year one and later years can credit differently. Surrender charges may apply.
Who this is for
- Extra cash that is not the emergency fund
- Money you do not need most of in the next couple of years
- A comparison, not a recommendation to move the workplace plan
What this is not
- Not from your employer, union, or retirement system
- Not a bank account and not FDIC insured
- Not advice to surrender a current contract