Hey MM community,
I have another quick question that I am hoping someone can clarify. I work for a local school district and have been trying to figure out they best way to allocate my retirement savings. There are a lot of different options. I have been contributing to a Roth IRA for about a year now, but want to diversify with some tax-deferred options. I have set up a 403(b) (yay for Vanguard being an approved vendor) and now I am starting to research the option of a 457.
1. Do you think it is still worthwhile to invest in the 457 if I can't select the investment products? It looks like it is managed by a firm chosen by a council made up of various district superintendents. I briefly looked at the prospectus and it look like 60-40 stocks-to-bonds with a 10 year return of 7.7% and a 0.45% expense ratio.
2. I am confused about accessing the money before 70.5. Can I just take out what i need and pay taxes on that, like do that once a month or once a year? Is so, that seems like a great way to create an income stream before 59.5, but the way it was worded it looked like I had to completely withdraw it and pay the taxes on the entire balance or roll it into another retirement vehicle like the 403(b).
Thanks for all the help!!