Lincoln Financial 457B via new employer

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Topic Author
BlackwaterPark10
Posts: 82
Joined: Mon May 13, 2019 10:43 am

Lincoln Financial 457B via new employer

Post by BlackwaterPark10 »

I have roughly 50k with my previous employer in a Vanguard 403b. My new employer only offers 457b's through Lincoln Financial. I have a 30 minute "get to know you and setup your new account" meeting with Lincoln tomorrow. I don't see the fees Lincoln is charging or even if self managed is an option, but I have a feeling they will be brutal. I am looking to add roughly 10k per year into this fund.

-What are the best practices in this instance?
-I prefer to keep all investments as simple and in as few places as possible, can I? Am I able to do similar as I did with my HSA and transfer from Health Equity to Fidelity each month but transfer my 457b funds from Lincoln to my Vanguard 403b every few months?
-There is no employer match
-Wife and I are already maxing out Roths, adding $100 a month to 529, and my wife is adding $200 a month into her 403b fwiw
-Is there anything else I need to be aware of?
-My previous employer was higher education and my new is local government if that matters.

Thank you
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retiredjg
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Re: Lincoln Financial 457B via new employer

Post by retiredjg »

Yes, it matters. :happy

You cannot transfer money out of a governmental 457 just because you want to invest somewhere else. For the most part, the rules (other than withdrawing early) will be similar to a 401k.

If the plan turns out to be poor, maybe put more into your wife's 403b and less into your 457?

Other than that, you may just have to wait and see how good/bad the plan really is.
Topic Author
BlackwaterPark10
Posts: 82
Joined: Mon May 13, 2019 10:43 am

Re: Lincoln Financial 457B via new employer

Post by BlackwaterPark10 »

retiredjg wrote: Mon Jun 10, 2024 1:13 pm Yes, it matters. :happy

You cannot transfer money out of a governmental 457 just because you want to invest somewhere else. For the most part, the rules (other than withdrawing early) will be similar to a 401k.

If the plan turns out to be poor, maybe put more into your wife's 403b and less into your 457?

Other than that, you may just have to wait and see how good/bad the plan really is.
Thank you, great point about my wife that makes sense.

Any good questions I should ask them?
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retiredjg
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Re: Lincoln Financial 457B via new employer

Post by retiredjg »

They should give you (or give you internet access to) a list of all the funds available along with the expense ratios specific to your plan, all the potential fees you can expect to pay, and a summary plan description. I suppose fees are the most important detail. Should be pretty straightforward.

Many governmental 457 plans are excellent. Hope you find that yours is like that.
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HipCoyote
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Re: Lincoln Financial 457B via new employer

Post by HipCoyote »

BlackwaterPark10 wrote: Mon Jun 10, 2024 1:02 pm I have roughly 50k with my previous employer in a Vanguard 403b. My new employer only offers 457b's through Lincoln Financial. I have a 30 minute "get to know you and setup your new account" meeting with Lincoln tomorrow. I don't see the fees Lincoln is charging or even if self managed is an option, but I have a feeling they will be brutal. I am looking to add roughly 10k per year into this fund.

-What are the best practices in this instance?
-I prefer to keep all investments as simple and in as few places as possible, can I? Am I able to do similar as I did with my HSA and transfer from Health Equity to Fidelity each month but transfer my 457b funds from Lincoln to my Vanguard 403b every few months?
-There is no employer match
-Wife and I are already maxing out Roths, adding $100 a month to 529, and my wife is adding $200 a month into her 403b fwiw
-Is there anything else I need to be aware of?
-My previous employer was higher education and my new is local government if that matters.

Thank you
Brutal? As in violent? Come on...you are in charge of how you handle it. They provide information and you discern what is in your best interests. Simple. Prepare questions about fees and expenses, ask tough questions.

The difference between a college and a government may be quite large...in my case, the gov't 457 was very low cost, excellent choices and had a staff ready and waiting to help its clients...all for an admin fee of $25 bucks a year. So who knows what it will be like. Some non governmental programs are not as secure..not all, of course, but some.

Questions? Funds available, expenses of those funds, are there any "bundled funds" that combine a mixture of stocks, bonds sometimes labeled into broad categories of aggressive, moderate and low ..something similar. (I can't think of the term for these types of funds at the moment.) What is the yearly fee to participate, if any? Is there a transfer opportunity, say to Schwab, where you can invest in funds of your choice (such as with my old plan). Auto re balancing? Can you take loans from the plan? Is there a roth feature to the plan? Can you make changes to your plan on the web or do you need to talk to a rep. If they say you have to have an advisor, what are the costs, etc. If you leave employment, can you leave funds there? What happens if you retire as far as payout? If agency pays you for unused overtime and sick leave, can you put some of that $$% into the plan to reduce taxes?

Add to the mix you will now, most likely, be earning towards a pension...a total game changer in your financial life.
Topic Author
BlackwaterPark10
Posts: 82
Joined: Mon May 13, 2019 10:43 am

Re: Lincoln Financial 457B via new employer

Post by BlackwaterPark10 »

Thank you for the responses. They call went very well, and the only fee charged period is $50 per year to have the account open. I also have the ability to do Roth and or pretax, with a max of $23,000 per year.
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retiredjg
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Re: Lincoln Financial 457B via new employer

Post by retiredjg »

Sounds good so far. Any news on the quality of the funds offered?
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