401k or 457 plan

[bigjoey38]

Hello all

Anyone have experience with 401K and 457 plan?

Which one is better..?

I contribute to both at this time. Have another 13 years to retire and need to increase $$$ into one of the two plans...

I think 457 might be better...

Anyone with experience with these plans let me know....

My employer use to contribute to the 401k plan but they no longer do.

 

[Bill Reber]

Whichever you choice might be ...don't tell the goverment !!!

 

[Shimpy]

Sorry I can't help you but want to congratulate you on making plans for your retirement. So many don't and then regret it later. Put as much as you can in since a little sacrifice now will be worth it when you retire.

 

[slick rick]

Bigjoey ,my wife has done great with 401k and at the same we invested in mutual funds through fidelity. Now we took a hit when things got bad, but it was not money from our pocket yet, just fine now.So if interested you can always set up an meeting with investment counselor ,matters not how large or small their ready to talk.So just remember its your future your talking about, really hope it works out for you.Now to which is better I can only tell you about 401k, but do the research. Rick

 

[bigjoey38]

Thanks Guys ... Any info helps...

Les- I see your location and Florida is one choice we are looking at. I am also looking at

•Florida
•Nevada
•Texas

Yes no state income Taxes...........But I am also looking at Bullhead AZ...

 

[americanbadass]

There are many unique things about the 457's, in regard to deferred tax advantages. If you are over 50, you can change your contribution rate, with no penalty. These plans also reduce you current tax rate, and defers your payment of taxes until you retire or end the plan. In a perfect world you will be in a lower tax bracket when you retire, thus making it an advantage.
Like Slick said, do your research-these plans aren't rocket science-if someone really evaluates them.
One note of caution, many of the new plans are primarily Bond Funds. I would be sure that the investment strategy is a mix of mutual funds, bonds, and stocks! In this terrible economy we are enduring-bond funds have been in the Toilet for about the last 6 months. Usually bond funds are stable even in rough economic times-it does not look good for investors right now!:Shrug:

 

[bigjoey38]

Thanks americanbadass !