nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
Coming up to ER I've been looking at my asset allocation for the 7 years until I hit 59.5. I want to have enough money in cash/cash like funds to cover my expenses until I can easily access my IRAs, just in case I have to live through a protracted downturn. So the stable value fund in my 457 plan is grest for this.
The 457 plan allows money to grow tax deferred and also allows for penalty free withdrawals as soon as I leave my job. Income tax is due on those withdrawals.
The stable value fund is currently paying 2.6% interest (and will pay more when interest rates go up) with very little risk to principal..........
So tax deferral on gain, high interest, low risk to principal and ease of access look like a winning combination.
The 457 plan allows money to grow tax deferred and also allows for penalty free withdrawals as soon as I leave my job. Income tax is due on those withdrawals.
The stable value fund is currently paying 2.6% interest (and will pay more when interest rates go up) with very little risk to principal..........
So tax deferral on gain, high interest, low risk to principal and ease of access look like a winning combination.