Author Topic: Help me sort through retirement plan options  (Read 325 times)

BMEPhDinCO

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Help me sort through retirement plan options
« on: February 03, 2019, 07:17:18 AM »
Hi all,

We have reached (for the moment) a good place to be. We have access to lots of retirement plans and money to put in them. But Iím not sure what is best...

1 401k plan - not sure of providers, but into lower cost index funds
1 403b plan - fidelity
1 457 plan - not opened yet, probably going with Liberty
1 401a plan - fidelity
2 IRA plans - have Roths with USAA and Trad. With Vanguard

We also have a taxable account with Vanguard.

This year, we should have enough to max all the tax-deferred plans except the 457 (and have enough for half of that). But, is that the best choice? Or, for early (aiming for 50-55) retirement, should we put more into the taxable investments? I know many FIRE folks have lots in taxable accounts and right now, we only have $15-20k.

Thank you!

TomTX

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Re: Help me sort through retirement plan options
« Reply #1 on: February 03, 2019, 07:40:29 AM »
Is the 457 a governmental 457? If so, that should be prioritized over a 401k (all else being equal) - due to the easier withdrawal.

What are the costs of fees and expenses for your various choices? Why Liberty for the 457?

MDM

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Re: Help me sort through retirement plan options
« Reply #2 on: February 03, 2019, 12:17:28 PM »
The general advice is in Investment Order.

Do you have reason to believe you should do otherwise?  The suggestions given in that post will be good for most, but exceptions can occur.

MustacheAndaHalf

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Re: Help me sort through retirement plan options
« Reply #3 on: February 03, 2019, 07:52:17 PM »
What is your reason for picking Liberty's 457 plan over Fidelity?

If you move the Roth to Vanguard, you can still buy USAA ETFs for $0/trade.  Because of a change last year, you can now buy almost all (~1800) ETFs at Vanguard for $0/trade - USAA, Schwab, etc.

BMEPhDinCO

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Re: Help me sort through retirement plan options
« Reply #4 on: February 04, 2019, 05:22:27 AM »
I work for a university, 457 would be through them. However, Fidelity isnít an option for 457, hence liberty. There are a few other choices too, but about equal with that.

Thanks for tip on Roth, I will get that moved over!

Sounds like the advice is fill up all tax advantage accounts first, no matter what. Since we are still a few raises away from being able to do this, I will turn focus to 457, open one with low fees (canít see those options until I open account), and then in a few years, hopefully be able to put into the taxed investments.

Thanks all.

terran

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Re: Help me sort through retirement plan options
« Reply #5 on: February 04, 2019, 05:56:13 AM »
It seems unlikely that there's no way to find out what the investment options are for the 457. It may not be easy, but it would definitely be worth doing the work (even contracting the company representatives) since fees make such a big difference and they can vary a lot with different providers.