Continue Deferring Maximum or?

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Continue Deferring Maximum or?

Postby anonenigma » Wed Jan 30, 2013 1:29 am

I've been deferring the maximum to both my 403(b) and 457(b) for the past three years, but it looks like I'll need more income in the coming months.

Both the 403(b) and 457(b) are excellent, low-cost plans.

Should I: a) continue to defer the maximum and pay expenses from taxable savings or b) cut back on my deferrals?
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Re: Continue Deferring Maximum or?

Postby 555 » Wed Jan 30, 2013 7:09 am

Definitely
a) continue to defer the maximum and pay expenses from taxable savings
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Re: Continue Deferring Maximum or?

Postby NYBoglehead » Wed Jan 30, 2013 8:46 am

I'd say pay expenses out of taxable savings so long as you are maintaining an adequate emergency fund.
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Re: Continue Deferring Maximum or?

Postby Grt2bOutdoors » Wed Jan 30, 2013 10:24 am

NYBoglehead wrote:I'd say pay expenses out of taxable savings so long as you are maintaining an adequate emergency fund.


+1. Do not take on credit to pay those expenses. I'd rather lower the amount deferred first rather than take on a loan or credit card payment.
"Luck is not a strategy" Asking Portfolio Questions
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Re: Continue Deferring Maximum or?

Postby anonenigma » Wed Jan 30, 2013 8:13 pm

Thanks. Very helpful. I wouldn't be compromising my emergency fund and am allergic to credit card balances.
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