9/14 For people working for UC: Is the 457(b) a complete no brainer
investment like the 401k/403b, i.e. everybody should max it out,
or is it more nuanced? [I am a Bay Area renter without a mortgage
or any debt, so this would not cause a cash flow problem ... and
I would like to reduce my tax liability.]
\_ My financial advisor told me to max out both 403b and 457b. So if
you have the cash, do it.
\_ Max out? That's $26,000 a year!
\_ It's not a complete no-brainer; there is a $45/year fee, and you
can't get at the money while you still work for UC (though that's
less restrictive than the 403b). If you're going to use it, it
probably makes sense to put a significant amount of money into it,
just to reduce the fee on a percentage basis. -tom
\_ Plus, at least for 2004, you can only go into the uc-managed funds,
which definitely have limitations. Yes, you immediately profit
(from the taxes you don't have to pay now), but to get into the
fidelity funds you need to wait until at least July 2005.
\_ If your salary is over $100k, the tax savings more than
offsets the management fee, right? Only being able to choose
from UC managed funds does not seem like a significant limitation
to me. Especially siince your comparable 403b can be moved.
I dont understand the "Max out?" comment. -op |
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