I am currently 50 years old and will be retiring at age 55 with my current job/career of 30 years. I will be receiving a pension as well.
I currently max out my Roth IRS and 403B Roth and I will be encountering additional income next year that will allow me to invest more.
My question is,
Which will be better to invest in: a Govt 457 or Taxable Acct?This would occur after maxing out my Roth IRA and 403B Roth.
What concerns me is the Fees for the 457 through the 3rd party Vendor( TCG Services).
See below for the 457 Govt:
Administration Fees: $22.00 per participant per year, 0.25% of assets, paid by the participants (capped at $150,000 in assets)
Advisor Fees:0.10% of assets, paid by participant
Consultant Fees: 0.42% of assets, paid by participant
Plan Coordinator Fees: $0.15 per participant per month, paid by participant
Custodian Fees: 0.10%, paid by participant
Other Fees:$30 Distribution Fee, $50 Loan Set Up, All of the above paid by participant
*Pre-Tax
My 403B is pretty good which allows me to Invest in Vanguard and the only fees is from Vanguard which charges a straight annual $60 403b fee and then the expense ratio. Any remaining 3rd party fees is paid by my employer.
I would have 4 years left before retiring when I encounter the extra $, so would the 457 be ok to utilize during the last year or two before I retire so I rack up less fees and then upon retirement roll it over into my IRA? Or just avoid it all together and stick with a Taxable Acct?
One more thing to add: Despite early retirement at 55, I will be working overseas for another 5 years. So I don't plan to tap into my retirement until at least 60 years of age.