Posts Tagged ‘finances’

Planning for Retirement

Tuesday, May 18th, 2010

Few topics can kill a conversation like retirement planning. For as dull as the topic is, spending some time early in a career thinking about it can pay large dividends in the long run.

Boston University offers two retirement programs for employees. In the first plan, which kicks in after two years of service, the university makes a contribution to your retirement account based on your salary. The second plan, which you can start anytime, allows employees to defer up to $16,5000 a year into a supplemental account. This money is pre-tax, so at the same time it lowers your overall compensation for tax purposes.

For the supplemental plan (also known as a 403b), BU employees can choose from a suite of funds managed by TIAA-CREF or Fidelity. Both have solid reputations and low fees, but Fidelity offers more investment options. Of course, for some people, having fewer choices is a good thing.

Both TIAA-CREF and Fidelity send reps to the medical campus each month for free consultations. It’s worth making an appointment every few years or so to make sure you’re on track to meet your retirement goals.