Retirement Accounts Question

[mdklatt]

What is the practical difference between a 403(b) account and a 457(b) account? From what I can tell, they're virtually identical. :confused:

[yermom]

and how do i get money out of my TRS account? :O

[SanJoaquinSooner]

457b - 403b = 54b.

[mdklatt]

and how do i get money out of my TRS account? :O

Don't worry, TRS already has that covered. They're taking money out of your account to pay current retirees. OTRS makes Social Security look like a sound investment. :mad:

[Tulsa_Fireman]

For all I know the advisor is a cracked out hobo that just fell off a train, but this looks like a nugget or two of wisdom.

From http://en.allexperts.com/q/Retirement-Planning-2317/457b-v-403b.htm

Retirement planning is not that hard it just takes dicipline. The most important thing about any portfolio is how your assets are allocated and if you rebalance. One fund is not significantly any better than another over the long term.

That said both choices will offer you a good investment for retirement. In my experience plans offered to employees with less than say 25k in assets are nice for starting to invest but your options are very limited. There are more mutual funds available than there are stocks on the NYSE. Of the probably fifteen your 457B offers how do you know they are the right ones for you?

The positive in going with your 457B is ease of use and is the cheapest option available. The negative is limited choices and you will be directing yourself.

The 403B option with a planner will give you a huge range of options but may be more expensive. Most planners make a commission from the investments they put you into. That being said your 457B also pays commissions you just don't know to whom. The planner will also give you a phone number and you will get very personalized service. The planner will also be your "coach" when your discipline level drops.

If you find the right planner your cost will be the same regardless of which plan you choose. I have several teachers as clients and I feel that we are doing well toward their retirement. They also get advise on other areas of their financial life that they would not get from a plan.

If you do choose the planner option be very careful about accepting advise, especially when it comes to investments. If you find an American Express planner and all he offers you is AMEX funds then he does not have your best interests in mind. My personal relationships with my clients is a long term investment on my part. It takes a while before I really understand what they need and for trust to develop. If you choose a planner, take your time and approach it as a long term relationship.

Annuities are popular because of the tax implications and other aspects. You should not even be looking at them at this stage in your life. If someone offers them to you now they are not looking out for you. I will leave it at that. For the people that use them annuities are awesome. I sincerely doubt you are one of those people right now.

[mdklatt]

Okay, according to this (http://benefitsattorney.com/modules.php?name=Content&pa=showpage&pid=1), 403(b)and 401(k) contributions both have a combined maximum annual limit of $15,000, but the contribution limit for a 457(b) is seperate. So, if you have $30,000/year to save for retirement and you already have a 401(k), get a 457(b). But I have neither a 401(k) nor an extra $30k/year laying around, so that doesn't really help me make a decision.

[olevetonahill]

Just buy Natty lite Stock. Sell when I die . YWIA

[MextheBulldog]

457b - 403b = 54b.

:rolleyes:

[StoopTroup]

All we're offered is 401K.

I knew they were cheatin us outta the other 56k.

BASTAGES ! ! !

[OCUDad]

Just buy Natty lite Stock. Sell when I die . YWIAWhen you die, the stock will plummet. The trick is to sell just BEFORE you die. Keep us posted, willya? :D

[olevetonahill]

When you die, the stock will plummet. The trick is to sell just BEFORE you die. Keep us posted, willya? :D
Ive told My DIL to get her *** up here to my shack and let Yall know :cool:

[mdklatt]

Mich Rich is such a bastard for not helping me with this.