Hi All,
So I have and use ROTH and TRAD IRAS. I have one I setup to buy 100% VTI each month, another I do some fun trades with.
I recently got access to a 457b via career change. The company puts 6% in (if I put in 0% they still contribute this), and then will match 100% of 3% that I put in the 457. Pretty decent, but has a 7 year 100% vesting period, which I am not fond of.
I am currently trying to decide how much to put in my 457 vs IRA's. I will be under the income tier to allow Roth's, and close to the amount to reduce trad ira contributions/deductibility.
Plan is through nationwide. I understand I can access 457 plan before age 59.5 without an early withdrawal penalty which is nice, I can see that being a handy bridge.
The trouble is I am running through nationwide allowed funds. Fees are around 0.47-0.9%. There are target date funds (like .47% fee) and I can roll my own pickings (from things like bond funds, to sp500 funds, to mid cap funds), anywhere from .47-.91% fee.
How much should I be contributing to this plan? The minimum I know is the 3% to get that match, but should I be putting more to take advantage of the 457 deferral? If it doesn't go into 457 it will go into ROTH/TRAD ira up to the maximum, invested per month so I won't ever see the money.
Quick math shows VTI is like .04% fee yearly. Looks like I am basically paying nationwide .43% per year. I'm thinking I will do 6% my contribution, plus 6+3=9% on the company side. Total percent 15% a month, and then 5% a month goes into ROTH.
#1 I want to know how much percent to save.
#2 How much to save into 457, vs IRA.
#3 am I tripping over a dime to save a nickle worrying about this almost half percent I lose in the 457, as a cost of doing business?