genjix
Member
Cash: $ 3.40
Posts: 15
Joined: 12 Jan 2011
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| 403b, IRA or Roth IRA? |
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Hi guys,
so i just started a new job and was going to roll over my 401k from my old company to a new 403b they had set up here. When trying to talk to the rep for the 403b (mass mutual), i was asking what are the admin fees and maintenance fees associated with this? he would not give me a straight answer and always side tracked from the question leading me to believe that there was something suspicous. I'm 33, I have approx 30k in my 401k, I have around 60k in savings and 18k in stock market where I do short term trades. my current company does not match on the 403b. any advice or articles I can read on where to put my money for retirment? Also forgot to mention I plan to buy a coop this year which would cost approx 175k.
thanks all.
edit, i make in the low 40s. in income and no debt
also Ive been hearing a lot about vangaurd, should i roll it over to that company?
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Wed Jan 12, 2011 7:05 pm |
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oldguy
Senior Member
Cash: $ 308.90
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Joined: 21 May 2006
Location: arizona
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quote:
I have approx 30k in my 401k, I have around 60k in savings and 18k in stock market where I do short term trades. my current company does not match on the 403b.
Vanguard would be a top choice - avoid rolling the 401k into the 403, instead roll it into an IRA at Vanguard where you can invest it in whatever you like - and the fees will be low.
With the $78,000, at your age I would want about $5000 in cash and $73k invested in the stock market, mostly in an index fund where it grows tax-deferred and where it is immediately accessible as either a fallback EF or for a coop dp.
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Wed Jan 12, 2011 10:13 pm |
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oldguy
Senior Member
Cash: $ 308.90
Posts: 1479
Joined: 21 May 2006
Location: arizona
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quote:
I have approx 30k in my 401k, I have around 60k in savings and 18k in stock market where I do short term trades. my current company does not match on the 403b.
Vanguard would be a top choice - avoid rolling the 401k into the 403, instead roll it into an IRA at Vanguard where you can invest it in whatever you like - and the fees will be low.
With the $78,000, at your age I would want about $5000 in cash and $73k invested in the stock market, mostly in an index fund where it grows tax-deferred and where it is immediately accessible as either a fallback EF or for a coop dp.
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Wed Jan 12, 2011 11:06 pm |
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genjix
Member
Cash: $ 3.40
Posts: 15
Joined: 12 Jan 2011
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quote:
Originally posted by oldguy
quote:
I have approx 30k in my 401k, I have around 60k in savings and 18k in stock market where I do short term trades. my current company does not match on the 403b.
Vanguard would be a top choice - avoid rolling the 401k into the 403, instead roll it into an IRA at Vanguard where you can invest it in whatever you like - and the fees will be low.
With the $78,000, at your age I would want about $5000 in cash and $73k invested in the stock market, mostly in an index fund where it grows tax-deferred and where it is immediately accessible as either a fallback EF or for a coop dp.
thanks for the reply, what is a coop dp? I tried to google it and didnt find any info on that.
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Thu Jan 13, 2011 1:29 am |
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oldguy
Senior Member
Cash: $ 308.90
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Joined: 21 May 2006
Location: arizona
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quote:
what is a coop dp?
I meant 'down payment'.
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Thu Jan 13, 2011 2:49 am |
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coaster
Senior Advisor
Cash: $ 1357.20
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Location: Wisconsin
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| Re: 403b, IRA or Roth IRA? |
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quote:
Originally posted by genjix
.... leading me to believe that there was something suspicous.
Not necessarily.....more likely a case of the rep not knowing the answers to your questions and trying to cover. Never works. You'd probably be shocked at how many companies' retirement plan reps don't know their own plans, and the people at the investment company know even less because every plan is different.
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Fri Jan 14, 2011 7:20 am |
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genjix
Member
Cash: $ 3.40
Posts: 15
Joined: 12 Jan 2011
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I liked the funds available at vangaurd and decided to roll over. thanks for the advise.
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Fri Jan 14, 2011 11:27 pm |
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sFinanceculture
New Member
Cash: $ 0.80
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Joined: 21 Jan 2011
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| 403b, IRA or Roth IRA? |
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The biggest benefit of a Roth IRA plan is the fact that the money withdrawn from the account at retirement is free from federal income taxes. For example, if you decide to place $5,000 into your Roth IRA in 2011 and that grows to $15,000 at retirement, you can withdraw all $15,000, and not have to pay any federal income taxes.
Another benefit you get with Roth IRAs is greater access to your money. While the Roth IRA withdrawal rules may be restrictive with respect to withdrawals that can be made without incurring a penalty, you still have the right to remove the money from the account at any time. Just keep in mind that you might have to pay an early withdrawal penalty.
With 403b plans, you will need to consult with your plan administrator concerning the early withdrawal rules. Money can be loaned from a 403b, but it is paid back with interest. (Some people might consider the fact that it's harder to get to your retirement money as a benefit.) You may not be able to contribute to your 403b until the loan is repaid.
Perhaps the biggest advantage of a 403b plan has versus a Roth IRA is the fact that employers often match employee contributions. These matching contributions can quickly and greatly enhance the overall value of your 403b account.
Another benefit of employer plans such as a 403b is that the money that goes into the account is done so on a before-tax basis. With a Roth IRA, the money used to fund the account is on an after-tax basis.
Thanks........
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Fri Jan 21, 2011 9:34 am |
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buziness2011
Contributing Member
Cash: $ 6.60
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Joined: 06 Jan 2011
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Fidelity and Van Guard are good companies to put your investment. They are multi-billion companies that handle big clients and transactions.
Insurance Policy Car Insurance Discount Cheap Life Insurance
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Fri Jan 21, 2011 7:35 pm |
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yulianisakov
Member
Cash: $ 4.60
Posts: 22
Joined: 20 Jan 2011
Location: New York, NY
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| weigh out the options |
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I suggest you roll over your old 401k to an IRA. Consider that you will have the flexibility to invest your money actively, as well as have any type of investment available to you. For a young guy, that is looking to be smartly aggressive, you won't be able to accomplish that within your A, B, C, or D option 403b plan.
[edited]
Yulian Isakov
Isakov Planning Group
Senior Investment Strategist and Sr. Financial Advisor
Financial Advisors
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Fri Jan 21, 2011 7:48 pm |
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