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Stillwater007

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Everything posted by Stillwater007

  1. Can someone please explain how the 15yr service catch up works and if I might qualify? I have worked for my School District for 21 years, but have only had a 403b Roth account open for about 7 months. I also turn 50 this year and will be eligible to retire and will at age 55. I read somewhere you can start 5 years from retirement age. Is that age 62 (or is it 65) or is it when I am eligible to retire from my job? If so, would I receive the extra $6500 option for turning 50 as well as 3k each year for the next 5 years? Thank you
  2. I agree that the savings in a lower expense fee doesn't make up the cost of the 403b fee unless it's over 95k which then the 403b wouldn't be necessary. HOWEVER, after maxing out my IRA, where else can I invest? A taxable account? Maybe. But wouldn't that be counter to trying to keep my investment tax sheltered?
  3. It does seem hard to believe, but I think it's Vanguards way of attracting clients to invest in their 403b plans because it does cost $5 a month or $60 a year as opposed to the IRA. Yes, it's virtually the same. For example, the tIRA has the VWINX while the 403b has the VWIAX. They're both the Wellesley Mutual Fund, one is the Admiral, the other Investor. Aside from the difference in the Minimum balance requirement and expense fee , they seem to be the same.
  4. Hi Tony, I should probably elaborate better. My fault. So I moved my tIRA that was with Edward Jones to Vanguard. It went from 1.05 in fees to .23 in fees. Don't ask why I went with EJ, I was clueless. The rollover to the Vanguard 403b(pre-tax) would be for the fees to be even lower from .23 to .16%. That's mainly why. I will already start contributing to the ROTH side of my 403b(Roth) so I will have fees anyways ($5 a month). There are no extra fees to have add the 403b (pre-tax) to the 403b Roth since it's still only one plan. It seems advantageous, I dunno? At least that's what Vanguard told me over the phone.
  5. I am thinking of rolling over my tIRA into my 403b account plan. The reason why is: 1. Expense ratios for the 2 mutual funds will be cheaper going from around .23% to .16% The 403b waives the minimum starting investment and it happens to be Admiral Shares which are cheaper than Investor Shares. Also, if I rollover my tIRA (which is around 34k total), would it effect the max amount allowed I have to contribute this year?
  6. Hello! I am considering purchasing some Wellington and possibly Wellesley in my 403b with Vanguard. However, I don't see them on the Vanguard 403b Services. I am possibly misreading the list? Any insight would be helpful as I have been on hold for the last hour with Vanguard. Thank you
  7. Thank you Krow. I do like the Balanced Index. This is the list of options I have with Vanguard:https://www.vanguard.com/pdf/403binvt.pdf
  8. So I'm going to keep a mix of Traditional and Roth, but will likely allocate more towards Roth than Trad. The last thing I need to figure out my allocations. The tIRA I am moving is to Vanguard (from Edward Jones). It has about 35k and I haven't touched it in over 8 years, SADLY. It's been in all stocks. It will be the first thing I withdraw from when I'm 59.5. I calculate that as a supplement to my Pension each month, after tax, that it will last me 7-10 years barring any surprises. I want to keep the tIRA moderate at the most so I want to make it more balanced. The 403b Roth would supplement my pension when I'm closer to 70 so it would compound for 20 years. I'm hoping I don't even need to touch it and pass it on to my 2 kids. The following is my thoughts on where to allocate my investments... tIRA- VBIAX ( Balanced Fund) it has only 0.7% and has performed well over the years. I believe it is passive. OR Target Date Fund 2030, but fees are a little higher. I think it is active. The 403b- This is where I'm a little unsure. Possibly a 2 or 3 fund Portfolio? Or is there a mutual fund that would be just as good? While I am learning a lot about Investments, I am not assuredly confident that I can manage my own investments. That's kinda scary! I will admit I am natually risk averse, but if something happens to an investment, I would leave it alone knowing that it will eventually go up. I just want to be smart as I am getting close to retirement. I'm no longer in my 20's! Haha
  9. Thank you! Yes, I am definitely doing a ROTH IRA. As far as the 403b, I will crunch the numbers and see how much I should allocate to a regular 403b and a 403bRoth. It looks like Vanguard will allow me to have both, yet not charge me fees for both but just one fee. I will need to confirm with them. Also, do deductions when filing taxes come into play when putting your money into a Roth or Traditional?
  10. As far as ROTH IRAs and 403b's, when is the deadline for each? If I start contributing now, I BELIEVE I have BEFORE April Tax Day to contribute to 2020 ROTH IRA, then after the Tax Day contribute to 2021. As far as the 403b, the Deadline is Dec 31, so I can only start contributing to 2021. Is this correct? Finally, with extra savings after maxing a 403b and a Roth IRA, is it wise to open up a regular brokerage account to put in extra savings? Or put it somewhere else? Thank you.
  11. Hello Tony, Thank you for your personal choice and perspective. I definitely want some ROTH as part of my retirement, I just don't know how much I want to go in. But I do like investing in both a ROTH and a tIRA. I just need to figure out the percentages. 50/50 or even 90/10? I know I can always tweak it at anytime. The 403b has low fees from what I can tell ($1.50 a month). But the 457 has multiple fees, it seems too much? And I have seen the 2 and 3 fund Portfolios from Bogleheads. Seems like it gives us more control to make adjustments when needed. No need to apologize. I appreciate your honesty! And I don't trust any of the salespeople. AT. ALL. At my school we had lots of the Insurance people posing as Retirement Advisors, and maybe they are, trying to sell Insurance Annuities. I just couldn't trust them!
  12. Hello MNGopher, I had a feeling I was leaving out some variables. I am 49yrs old (turn 50 end of 2021), current Head of Household (but Divorced). My Pension will be 70% of the average of the last 5 years of my career. I am a bit frugal because currently my expenses are roughly 55-60% of my salary so while my Pension should cover most expenses, extra Savings will come in handy when I least expect it. But I am not SS Eligible. I could work around 2-3 years after Retirement to qualify for SS, but there is a Law/Rule that cuts my SS into crumbs if I tried to claim it. Unless the tax laws change significantly, I don't see myself putting myself into a higher tax bracket. Best case scenario is I drop to a lower tax bracket, "worse" case is I stay in the same tax bracket. In all Likelihood, I stay in the same bracket, but just at the lower end. Also, one thing I should mention is that when I retire, I am considering teaching overseas for a year or two. While it can test the limits of taxes on my income, the extra money on top of my pension should be nice. Ultimately, I want to retire in Panama. I have family there and the cost of living in the country there is very affordable. Thanks for the advice and I noticed you're a Golden Gopher? My Daughter is currently a Sophomore at the University of Minnesota. She loves it there.
  13. Hello everyone and Happy NYE, I am relatively new to this site and have found it helpful so far! I am a public school Educator in the Houston area and will be eligible to retire and receive a pension 5 years from now. I do have 35k in an tIRA and 9 months in savings, but after following wise advice, I am in position to be able to save and invest about 40% of my gross pay. For educators on here who were able to retire early, what savings/investment strategies have you done to make early and current retirement achievable? What are your thoughts on 403b and 457s which my District offers (Vanguard is an option)? My District does have Vanguard listed as a provider. But there is a 3rd party involved that handles the transactions. Here is the link 3rd party And did you do a ROTH or Traditional? This one is tough for me to determine because I am near the top of my tax bracket(22%) and when I retire, I will be in the same bracket(22%), but near the bottom. Finally, a 403b Roth is also an option. Should I invest into a 403b Roth and then a Traditional IRA? Or 403b and a ROTH IRA? OR....a 403b and a 403bROTH? Can I do that?? I know I have certain limits despite the combinations.? I appreciate the advice from educators and others that have knowledge regarding Educators. Thank you and may everyone have a better New Year!
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