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Jerryd

403-b

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I have about $375K in my 403-b with national annuity insurance firm.

 

I will be withdrawing $145K from my state retirement account and want to add it to my retirement funds, in some fashion.

 

I can withdraw [ I mean transfer] my annuity $ without penalty of any sort.

 

In two years my wife will have "roughly" the same choice to make also.

 

My plan is to get into Vanguard or possibly some no-load IRA plan.

 

Has anyone traveled down this path lately? I would be glad to learn from your experiences.

 

I will still get around $25K a year from my state retirement plan. My wife will receive about $30k with an identical plan.

 

Suggestions are very welcome.

 

Moderate risk and long term retirement.

 

I am currently 56 and plan on taking on another job for the next 2-3 years.

 

jerryd

 

 

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Jerry,

 

With that amount of money it may be worth seeing a financial planner before you do anything. Especially before you take out the $145k from your pension. Are you by chance in CalSTRS? If you are I can almost guarentee its better to leave that money in the state's retirement system, especially at your age. If you are in CalSTRS I can offer some more insights that might help.

 

Chad

 

 

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Hi Jerry,

I agree with Chad. You will want to consider your options very carefully before you pull that money from your state retirement plan. A good place to ask questions is the Vanguard Diehard Forum on Morningstar.com. You can get there by clicking on this LINK. Best Wishes.

 

Joe

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Hi Jerry,

 

With reference to the 375 at your 403b.

 

Vanguard 1-800-on board has a 403b section and an ira section.

 

A while back, I moved my funds to the 403b section. I believe that the funds are same as what Vaguard has in the IRA's. Now all my funds are in the IRA section. The difference in investing in the two different places were slight. I think that I had to pay 10 or 15 dollars for each fund invested at the 403b, while for IRA's there was no charge.

 

I'm not exactly sure of the tax law, but I think I had read that you can roll over to an IRA if you are retired and over 55. I'm not sure what the tax law is now. VAnguard probably has some expertise that they can share, or I'm sure one of the posters who b 403 wise would know. Anyway, if you want to be completely safe I would put the money in the Vanguard 403b for the next 3 years, then switch. There will be no difference, in the way that your assets will appreciate.

 

I'm pretty sure that if you move a large sum to the Vanguard IRA section they will give you free advisor planning advise, and you will be eligilbe for their voyager class (over 250,000K to 1,000,000K) which entitles you to some small extras.

 

I am not able to offer any knowledge about the 145K you say that you wish to withdraw from your state retirement system.

 

I don't know what your financial knowledge is, but at the diehards site that Joe referred to you there is list of recommended books to develop financial knowledge.

 

Ira

 

 

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Jerry, my experience is similar to Ira's, I moved my 403bs into IRAs before 59 1/2 with no problems. One requirement was that I was no longer working for the agency where I had the 403bs. Best of fortunes, Dan

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Guest Sierra
Jerry,

 

With that amount of money it may be worth seeing a financial planner before you do anything. Especially before you take out the $145k from your pension. Are you by chance in CalSTRS? If you are I can almost guarentee its better to leave that money in the state's retirement system, especially at your age. If you are in CalSTRS I can offer some more insights that might help.

 

Chad

Why is it better to leave the 145K in the PERS rather than effectuate a rollover to another eligible retirement plan?

 

Joel

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Guest Sierra

If you leave the $145k with the PERS you are in effect transferring the title of the 145K to the PERS in return for a guaranteed lifetime income. This is called "annuitizing". If you rollover the $145K to another eligible retirement plan you gain the title to it and it can be used as a double edge saw: 1. A wealth builder and 2. A income generator.

 

Peace and hope,

Joel L. Frank

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