Hello folks, as I mentioned in another thread I'm currently debating PSLF vs aggressive student loan payback for 5 years. Regardless of which option I choose I believe I will have at least 36k/year to put towards retirement, and possibly the full 47k that would include Roth contributions. I will have to continue to read to really know what I'm doing, but I was hoping for some basic guidance to get me started.
My workplace offers a 403b and a (governmental) 457. The financial advisor who this plan is offered through is someone at Edward Jones who has apparently been an advisor for 15 years but only has an AAMS. The account is through MassMutual Retirement Services. They also offer online 'asset allocation recommendations' through Morningstar Associates. (Sorry, I'm not sure this is relevant.)
Here are the investment options from the information the advisor sent me (haven't met in person yet). I included a screenshot of the returns, fees and holdings of one particular fund. I'm hoping someone can point out the important numbers, or what I'm looking for.
Questions:
1. Is there an order of preference for the backdoor Roth, 403b and 457? From what I understand the Roth is taxed now and the others are taken pre-tax. Because my income (208k) is >36k above the lower end of the 2017 28% tax bracket (153k), I am guessing it does not matter?
2. Is there a quick primer to understanding whatever fee structures are in place? What qualifies as 'low cost'? I thought it was ~0.1%, but none of these options are less than 0.75% and they all have a 0.5% 'program and administrative charge.' If all these offerings are so expensive, should I be investing elsewhere? Do I have any other way of contributing to a pretax retirement fund? I have a savings account with Charles Schwab... or is there some way to indendently open a 401k with Vanguard?
3. I can't identify which if any of these are index funds, how do I do that from the information sheets provided?
My workplace offers a 403b and a (governmental) 457. The financial advisor who this plan is offered through is someone at Edward Jones who has apparently been an advisor for 15 years but only has an AAMS. The account is through MassMutual Retirement Services. They also offer online 'asset allocation recommendations' through Morningstar Associates. (Sorry, I'm not sure this is relevant.)
Here are the investment options from the information the advisor sent me (haven't met in person yet). I included a screenshot of the returns, fees and holdings of one particular fund. I'm hoping someone can point out the important numbers, or what I'm looking for.
Questions:
1. Is there an order of preference for the backdoor Roth, 403b and 457? From what I understand the Roth is taxed now and the others are taken pre-tax. Because my income (208k) is >36k above the lower end of the 2017 28% tax bracket (153k), I am guessing it does not matter?
2. Is there a quick primer to understanding whatever fee structures are in place? What qualifies as 'low cost'? I thought it was ~0.1%, but none of these options are less than 0.75% and they all have a 0.5% 'program and administrative charge.' If all these offerings are so expensive, should I be investing elsewhere? Do I have any other way of contributing to a pretax retirement fund? I have a savings account with Charles Schwab... or is there some way to indendently open a 401k with Vanguard?
3. I can't identify which if any of these are index funds, how do I do that from the information sheets provided?
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