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Hi folks. My question is whether or not (and how) I should invest in a 457 - which doesn’t have the best funds (maybe).
Background, first:
I recently finished residency and have chosen a career that is highly-rewarding… except for all things related to earning money: high cost city, generalist, working in academic medicine, and working for the municipal health department. My patients are great, the work is good, but the compensation is poor.
I contribute to a Roth IRA (and spousal) through Vanguard.
Also, with my employer, I get a 403b through Prudential.
I invest in: VIIIX (institutional S&P), VBTIX (total bond market), and VTSNX (international) with the 403b.
But, it is not matched, since we contribute to a pension.
I don’t mind having a real high savings rate for retirement right now, can always cut back later.
But: I noticed we also get this deferred compensation plan: 401k vs 457, through the city.
I guess the 401k makes no sense, as I have the 403b (total would have to equal $18.5 K). Whereas, the 457 is in addition to the 403b, so I could put away $37 K total, each year.
But the fund’s are:
https://www1.nyc.gov/site/olr/deferred/shared-dcp-and-nyceira-share-core-options.page
I’d go for the Equity Index Fund Profile, which seems to be an S&P 500 with fee of 0.05%.
But I just haven’t heard of BNY Mellon, and I don’t know if I’m missing something else big here.
FYI: The NYC public hospital system is the largest in the country, by far. We have around 11 hospitals, but I work in a giant DTC. I think my question is shared by thousands of other docs, whether they know it yet or not.
If it matters, I probably won’t be able to stick out this job forever, so eventually I’ll get a refund on that pension (grows at 5%, compounded annually) and go to part time elsewhere, once my wife finishes her PhD…
Background, first:
I recently finished residency and have chosen a career that is highly-rewarding… except for all things related to earning money: high cost city, generalist, working in academic medicine, and working for the municipal health department. My patients are great, the work is good, but the compensation is poor.
I contribute to a Roth IRA (and spousal) through Vanguard.
Also, with my employer, I get a 403b through Prudential.
I invest in: VIIIX (institutional S&P), VBTIX (total bond market), and VTSNX (international) with the 403b.
But, it is not matched, since we contribute to a pension.
I don’t mind having a real high savings rate for retirement right now, can always cut back later.
But: I noticed we also get this deferred compensation plan: 401k vs 457, through the city.
I guess the 401k makes no sense, as I have the 403b (total would have to equal $18.5 K). Whereas, the 457 is in addition to the 403b, so I could put away $37 K total, each year.
But the fund’s are:
https://www1.nyc.gov/site/olr/deferred/shared-dcp-and-nyceira-share-core-options.page
I’d go for the Equity Index Fund Profile, which seems to be an S&P 500 with fee of 0.05%.
But I just haven’t heard of BNY Mellon, and I don’t know if I’m missing something else big here.
FYI: The NYC public hospital system is the largest in the country, by far. We have around 11 hospitals, but I work in a giant DTC. I think my question is shared by thousands of other docs, whether they know it yet or not.
If it matters, I probably won’t be able to stick out this job forever, so eventually I’ll get a refund on that pension (grows at 5%, compounded annually) and go to part time elsewhere, once my wife finishes her PhD…
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