Author Topic: Illinois Public Pension Fund Association  (Read 1410 times)

Alittlehelpgoesalongway

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Illinois Public Pension Fund Association
« on: June 16, 2016, 01:30:31 PM »
Hey everyone, just a few quick questions-

I have an emergency fund in cash at the bank which is much for than I need.  I contribute 10% of my pay to my pension, and have finished my Roth IRA for the year.  I am going to start maxing the 457 plan offered by my employer (Illinois Public Pension Fund Association), but they don't have any ticker symbols, just general names of the funds and expenses.  The expenses are allegedly all I will have to pay.  I am going to allocate most of my money into their stock index with gross expense at .65.  I am not so sure what to use for their bonds, which are actually listed as the following:

Short Time Corporate Bond-High Quality expense of 1.00
General Corporate Bond-1.oo
Inflation protected securities-general government bond-1.00
High Yield Bond Corporate-1.10

Question 1) Which of the above would people recommend?
Question 2) I will be trying to move jobs in 12 months (girlfriend will be working), so is it even worth me starting a 457 plan or will companies just charge me to move it? (Yes I know this is mind blowing to people but its okay)

Question 3) I just finished "Millionaire Teacher" and "Common Sense on Mutual Funds," so I feel like I'm headed in the right direction.  I want everything simple. Will I lose out if I move my Roth to Vanguard with 80% allocation in VFIAX and FBTLX, or is it okay to keep it in FUSVX and FSITX?

Question 4) I have no debt, and allegedly I dont have access for an HSA, so can I now move to purchasing taxable index funds? (Im single, 80k/year, no mortgage, no kids) I dont know if I missed something in the general 8 investor development plans.

Thanks everyone!

DrF

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Re: Illinois Public Pension Fund Association
« Reply #1 on: June 16, 2016, 01:56:01 PM »
The 457 is one of the most amazing investment vehicles out there. You are allowed to contribute $18,000 tax free in 2016. The best part is that if you leave your employer for any reason, you can withdraw those funds with no penalty (you still pay taxes just as if you earned that income). I'd try to max out the 457.

What are the lowest expense ratios available? Is there a way to get the ticker symbols. Kind of hard to evaluate what fund to choose without knowing what's in the fund.

beltim

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Re: Illinois Public Pension Fund Association
« Reply #2 on: June 16, 2016, 03:00:12 PM »
I don't think it's worth paying 1% for any bond funds, so I'd probably just invest any money you put into the 457 into the stock index fund. 

You can roll a 457 into a new employer's 457 or to a traditional IRA.

Alittlehelpgoesalongway

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Re: Illinois Public Pension Fund Association
« Reply #3 on: June 18, 2016, 06:12:04 PM »
Thanks for the answers!  $18k into the 457 it is.  I'll try to find the ticker symbols on Monday, but if I can't, I think I'm fine with beltim's advice on going 100% in the stock index. 

mrpercentage

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Re: Illinois Public Pension Fund Association
« Reply #4 on: June 18, 2016, 06:18:49 PM »
I am doing something similar. I would enroll in that 457 then get online and review the options. Do not just handle it through a rep as they will favor the funds of the companies they work for. I would bet you $10 that Vanguard is in the 457. I suggest you look into it

Alittlehelpgoesalongway

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Re: Illinois Public Pension Fund Association
« Reply #5 on: June 21, 2016, 05:00:12 PM »
mrpercentage- Unfortunately I cant find Vanguard in either of the packets I was given for the 457.  I called again today, and they still couldn't find a ticker symbol for me for the stock index fund.  However, one of the packets is adamant there are no other fees involved,  so the index fund would be at .65.  Awesome Thrones episode on Sunday by the way.