Author Topic: Took the plunge into 457b  (Read 1914 times)

Rural

  • Magnum Stache
  • ******
  • Posts: 4932
Took the plunge into 457b
« on: July 15, 2013, 07:55:56 PM »
Signed up for the 457b at work today, not quite but almost maxing it out. I'm 85% equities (index funds) and 15% bonds, all lowish but not wonderful expense ratios (between .40 and .60) no Vanguard funds available, these are all TIAA-CREF. I could get Vanguard going with the other company at work, but then it would all be in annuities. Ironically, TIAA-CREF let's me out of annuities.

I'm/we're old for such an aggressive asset mix, but we each have a pension in a pretty healthy state system, so I'm looking at that as my "safe" bond equivalent.

I'm going to let it run at that amount for a month and see what I have left in take-home. I may up it for the next month if I can (ie: if there's any money left). I got a look at the options available to my husband from his new job, and they stink, expenses running 1.90 and over! So we invest perhaps all of my pay in pretax...

Comments, anyone? I still have time to make changes.

Zamboni

  • Magnum Stache
  • ******
  • Posts: 2690
Re: Took the plunge into 457b
« Reply #1 on: July 15, 2013, 08:06:34 PM »
You probably already realize this, but 457b is a great deal because it's pre-tax contribution you can withdraw ALL of the money without penalty at any age (you do have to pay tax upon withdrawal, of course.)  My former employer offered this, but my current one does not, alas.  Congratulations for making the most of the option! 

Rural

  • Magnum Stache
  • ******
  • Posts: 4932
Re: Took the plunge into 457b
« Reply #2 on: July 15, 2013, 08:26:57 PM »
Yep, that's the cool thing about the 457. Withdrawal anytime after separation from the job. If my husband's job also offered one (it doesn't), we'd be looking hard at it in spite of the terrible expense ratios.

aj_yooper

  • Handlebar Stache
  • *****
  • Posts: 1091
  • Age: 9
  • Location: Chicagoland
Re: Took the plunge into 457b
« Reply #3 on: July 16, 2013, 06:23:05 AM »
Sounds like you scoped this out very well and no annuity!  All your employees will be tucked in nicely.  I agree on the AA you picked, given your pension.