A 403(b) plan has become more like a 401(k) in recent years but the biggest drawback is that the choices are limited and they're often expensive. You'll likely only have a couple choices ( if that ) per fund type so it comes down to what's offered. People can suggest funds all they want but it remains to be seen if that's available to you in your plan. Worse, some 403(b) plans have annuities as part of the package which make little to no sense in a tax-deferred investment. My understanding is that 403(b) plans also have a lower age (55 vs. 59 1/2) that you can withdraw without penalty.
You get different arguments about index funds and actively managed ones and what the expense ratio is with x fund vs. y fund but an important factor to consider is what it pays you and not necessarily what it costs. An S&P 500 index fund wasn't exactly a stellar investment from 2000 to the meltdown vs. higher-yielding sectors of the market. You don't have to be a market timer, but I think in today's world you might have to be a little more cognizant than letting something ride for years without making tweaks and changes along the way. There will undoubtedly be periods where actively managed funds will do better than index funds and vice versa.
You get different arguments about index funds and actively managed ones and what the expense ratio is with x fund vs. y fund but an important factor to consider is what it pays you and not necessarily what it costs. An S&P 500 index fund wasn't exactly a stellar investment from 2000 to the meltdown vs. higher-yielding sectors of the market. You don't have to be a market timer, but I think in today's world you might have to be a little more cognizant than letting something ride for years without making tweaks and changes along the way. There will undoubtedly be periods where actively managed funds will do better than index funds and vice versa.
