457B Comparison

[technil]

Hi,

I just started working for the local government judicial court and I don't know much about investing. However, I would like to get started and don't want to end up on the wrong path where I have to curse at myself during the retirement years.

I have attached the three different 457b plans currently offered at my job, which one would you prefer? Any recommendations?

Thanks,
The newbie

 

[arky]

Seems like a trick question. I think the answer is "none of the above".

 

[westcoast]

All appear to be bad options. Suggest that HR develop better ones.

 

[jclarksnakes]

I would look at traditional and Roth IRAs instead of investing in any of those three plans.

 

[westcoast]

Do they offer a 403(b) with less toxic options?

 

[technil]

@westcoast - I work for the local government and things are just slow to get done around here. I came from a private company and it just a big cultural shock for me to to see things not done in a timely manner. So I don't think my suggestion to get better plans are going to get anywhere. 457b is the only option they offer.

I guess the only benefit I see for the 457b is early withdraw without the 10% penalty.

I don't know much about investing so I would prefer to have plan that have target date retirement, like set it and forget it. What makes the traditional IRA better than the 457b? Is it because the administrative fees are too much compared to traditional IRA at fidelity and vanguard for example?

 

[nun]

I just don't understand how these companies and organizations can get away with such terrible plans. Complain to your HR department. FYI here is the 457 plan that the state of MA offers. Use it to show what a reasonable plan looks like.

https://fascore.com/PDF/mass/SMART_PlanOverview.pdf

The annual administrative fee is 0.0975% and there's a good range of target date funds and index funds having fees around 0.16%

https://mass-smart.gwrs.com/preLogi...gin.invest.invOptions&specificBundle=preLogin

you can also invest through TD Ameritrade if you want more choice.

 

[ERhoosier]

All I can say is- WOW. Employer retirement plans that bad (e.g. high total fees, very limited options) just enrich the investment co's, & sometimes the officials who sign up their [-]lambs for the slaughter[/-] employees. You mention 457b having a benefit of no 10% early WD penalty, but there are significant surrender charges for 2 of the 3 plans in your chart. You sure there aren't any other options besides these variable annuities?

BTW- Perhaps you can't "fight city hall", but I would still respectfully express my opinion to HR. This poor a retirement plan "benefit" might be a negative for recruitment/retention of good employees. At least I know it would be in my area- even amongst gov't employers. And using nun's links would be good support for your position.