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Brownstone

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  1. Brownstone

    457 Vs 403b

    Hello all, This has to be covered somewhere, but I haven't been able to find it yet. If one has the choice between a 403(b) and a 457, what are the differences between the two types of plans that could lead to choosing one over the other? In our case, the investment providers are different, and that may be a deciding factor once we know more. But other than that, are their any key differences between these two plans that could make a practical difference? Thanks!
  2. Thanks for the advice so far; we are going to go ahead and request these companies send us the list of investment alternatives and fees so we can see what the options are. What really puzzles me is why her employer (a state university) has selected different providers for the different retirement plans. The university does not participate in Social Security. Instead, 8% from each paycheck will be met with a 9% contribution, and deposited into a "DCP" account. We can choose between Valic, Fidelity, and TIAA-CREF to manage that account. From my reading, it appears that Fidelity and TIAA-CREF both offer some good choices and low fees. So it is puzzling that for the 403(b) they went with Valic, FNIC, and Smith Barney. Even more confusing; we could start a 457 with Great West Financial. So many choices, but none of the ones outside the DCP look that appealing. Our plan for 2006 was to make a maximum allowable contribution to her 403b, and try to reduce our tax bill by not realizing that income. Our alternative would be to realize the income, fund two Roth IRAs, and sock away a little more in a regular brokerage account. But in the big picture, we'd really like to get this money saved before taxes, which leads us back to wanting to go with the 403(b) or 457. Thanks again for the advice so far... If we learn anything interesting, I'll post it again.
  3. Hello all, This is my first post here, so please be gentle... My wife (we're just married) has just started a new job and is eligible to open a 403(b) account, and she is looking to me for advise on managing it. I've been comfortable in the past managing my 401(k), but have never been presented with a choice of providers before. We have three choices for investment providers, and I'm not sure how to even evaluate them against one another: * AIG Valic - www.aigvalic.com * FNIC - www.fnic.com * Smith Barney - www.smithbarney.com Based on a few things I've read here, I'm leaning away from AIG Valic; they seem to have a reputation of taking advantage of their investors. Does anyone have any feedback on the other two, FNIC and Smith-Barney? Are there any specific questions we should ask about these providers to help make a decision? Thanks in advance for any advise you can give!
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