SEC publishes resources to assist public school teachers.The Securities and Exchange Commission recently launched a "Just for Teachers" section on its Web site to help public school teachers in grades K-12 evaluate and select appropriate investments for employer-sponsored 403(b) retirement savings plans Noun 1. retirement savings plan - a plan for setting aside money to be spent after retirement pension account, pension plan, retirement account, retirement plan, retirement program, retirement savings account and other savings vehicles. "At the SEC, we are the investor's advocate," said Chairman Christopher Cox, "and every teacher with a retirement plan is an investor. These Web tools for teachers are built for busy educators--they're easy to use, and designed with teachers' unique circumstances in mind. America's teachers understandably make educating our kids their top priority, but it's important for them to think about their own financial future, too." "We've noticed that teachers devote so much of themselves and their resources to their students that they sometimes overlook their own needs, such as planning for a secure retirement," said Susan Wyderko, Director of the Office of Investor Education and Assistance. "The SEC's new 'Just for Teachers' Web site will help teachers make informed decisions about their retirement savings options." The "Just for Teachers" Web site explains 403(b) retirement savings plans, which are tax-deferred retirement savings programs available to employees of public schools, employees of certain nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. entities, and some members of the clergy. Teachers who participate in 403(b) plans typically choose from among different types of investments, including fixed annuities Fixed annuities Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period. , variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. , and mutual funds. The "Just for Teachers" site also provides general information about saving and investing wisely, including the basics of asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. , diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , and rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting . The site also includes tips and resources for teaching personal finance in the classroom. While all of the materials are available online, teachers also can contact the SEC from the "Just for Teachers" Web site and request a free "teacher care package," consisting of SEC educational brochures on mutual funds, variable annuities, and other investing topics, which will be mailed to the investor. |
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