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I recently posted trying to figure out what to do with my non-governmental 457 and am leaning against using it. The biggest downside of the terms is that if I leave my employer I have to take it all immediately as a lump sum. The rest is good -- retirement distributions up to 10 years, clinic bankruptcy seems unlikely. The other bad thing is the target date funds have 0.99% fees, though some other funds have lower fees (I'd just have to figure out how to divvy up my money among the lower-fee funds). I can still get in on it for 2017 by withholding my pay in December if that turns out to be the better choice.
If I don't use the 457, where do I put retirement savings after $18k in my 403b and $5.5k in a backdoor Roth? I'm getting a late start on building up my retirement nest egg so want to start making up lost time. My deal is my annual income is around $130k, together with spouse ranges from 150k-280k over past 5 years, on track this year for about $250k. Taxable will probably be around $150k. We live in an expensive area and I like my work, so I plan to work until my mid to late 60s (am now 45). This year I hit $18k on my 403b at the end of June, and would like to save another $10-12k in addition to the backdoor Roth. If the 457 makes the most sense, then I'll swallow my terror at having to figure out "mid-cap equity" vs. "fixed income" vs. " international equity" and pick a couple of funds with better fees than the target date funds. But if the 457 doesn't make sense, then were do I put the money?
If I don't use the 457, where do I put retirement savings after $18k in my 403b and $5.5k in a backdoor Roth? I'm getting a late start on building up my retirement nest egg so want to start making up lost time. My deal is my annual income is around $130k, together with spouse ranges from 150k-280k over past 5 years, on track this year for about $250k. Taxable will probably be around $150k. We live in an expensive area and I like my work, so I plan to work until my mid to late 60s (am now 45). This year I hit $18k on my 403b at the end of June, and would like to save another $10-12k in addition to the backdoor Roth. If the 457 makes the most sense, then I'll swallow my terror at having to figure out "mid-cap equity" vs. "fixed income" vs. " international equity" and pick a couple of funds with better fees than the target date funds. But if the 457 doesn't make sense, then were do I put the money?
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