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shirley

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  1. Kieran, FYI, Mutual Funds with the designation "R" is another sneaky way (though perfectly legal) of hiding fees. The fees usually come via higher expense ratios, thus draining your returns; over the years this small fee will provide diminished results. Bob
  2. D.D. As Tony stated, your BEST choice is to maximize your employer match. Your next question is whether to use the Traditional or Roth 403b for your investment vehicle and that has a different answer for each of us because there are many variables, i.e., pensions, social security, other income, spouses income, retirement age, etc. I boiled it down to another question: do you want your investment to compound on a tax-deferred basis or tax-free basis. There are many articles re this topic and there is no fit-all answer. Some of us prefer tax avoidance and select the Traditional IRA; some anticipate high income during retirement and select the Roth; and some select a mix of both. As Tony and krow both point out, an investment directly with Fidelity and Vanguard for Traditional or Roth IRA is an excellent choice. Additionally, in larger cities, Fidelity has walk-in and appointments for one-on-one service. Good luck. Bob
  3. MNGopher, I absolutely agree!!! Because you would no longer be employed, you could roll your entire 403b into an IRA. You could then supplement your Option A ($4050/mo. for life) with withdrawals from your IRA. At the same time, once a year compute your most favorable amount for a Roth conversion. Perhaps you could do this until age 70 and then take your maximum SSA benefit. Everybody's arithmetic is different but, personally, I prefer to pay the tax and take advantage of compounding on a tax-free basis. I like what you're doing. Bob
  4. RuthD, Since you expect a pension and the same tax bracket, do you want to compound your savings on a tax-free or tax-deferred basis?
  5. Dan, This is a valuable lesson that is often neglected on your site. I, too, fell into this trap. I became aware at age 65 with 5 years until retirement and started rolling funds into a ROTH IRA from my 403b account. I was able to absorb the tax bite by using my conventional savings account. The entire 403b account was moved and, as you know, was unable to touch the 457b account because I was still employed. My full pension, plus SSA ( I was a classified employee) lifted me into a higher tax bracket. Currently, I have an untaxed Traditional IRA that will generate more income from the RMD. What a problem!!!! Thanks for the reminder to all of the supersavers and longtimers!!! Bob
  6. Krow36, Thanks, Krow36........valuable information!!!!! Bob
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