Hi, my employer is offering a 403b, ROTH 403b plan and a 457b plan with this investment company called the The Legend Group. Has anyone heard of them or have experience with them? They offer some Vanguard funds that Im looking into so Im kind of partial with them. Another group Im looking at is GWN securities, does anyone have any experience with them? Also Im new with 403b's and ROTH 403b's and 457b plans, can anyone explain the difference between them and a 401k or a IRA? Should I take a ROTH 403b and a 457b plan? What are the advantages or disadvantages of doing so? How can I utilize such plans to retire early (age 45, Im currently 30)? Im new to all this, so I am willing to learn. Thank you.
ROTH 403b and 457b with the Legend Group
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youbet
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This is information that would take a page to explain with any amount of detail, depends somewhat on your personal circumstances and is readily available by Googling.
Perhaps, for this part of your question, you should do some basic research and reading for an hour or so and then come back with more specific questions based on your gained understanding.
You're in luck. The 403b and 457b have separate contribution limits so you can save up to $18,000 each in tax advantaged accounts plus an additional $5,500 in IRA. The 457b also doesn't have a 10% early withdrawal penalty as long as you're separated from service so prioritize that over the 403b (after any matching on 403b of course).
If you plan on retiring at 45, I probably wouldn't bother with a Roth 403b unless you're already in the 15% bracket or something. You can reach FI more quickly by deferring taxes. You can easily do a Roth conversion upon retirement anyway.
The biggest thing that you can do in order to reach super early retirement is reducing your expenses. Not only will this allow you to save more, lower expenses means you need a smaller nest egg as well as lower taxes.
If you plan on retiring at 45, I probably wouldn't bother with a Roth 403b unless you're already in the 15% bracket or something. You can reach FI more quickly by deferring taxes. You can easily do a Roth conversion upon retirement anyway.
The biggest thing that you can do in order to reach super early retirement is reducing your expenses. Not only will this allow you to save more, lower expenses means you need a smaller nest egg as well as lower taxes.
nun
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The 457 is a great early retirement tool as it's tax deferred and you can withdraw without penalties as soon as you leave your job. So I'd fund the 457 first and then the 403b. If you also have a 401a you might be able to save over $50k tax deferred.
