where should I put my money for a short term 457(b) plan?

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paym3
Posts: 1
Joined: Wed Jul 10, 2019 11:46 am

where should I put my money for a short term 457(b) plan?

Post by paym3 » Wed Jul 10, 2019 11:56 am

Hi everyone,

I'm looking for feedback. I work for a nonprofit hospital organization that is financially stable. Our retirement accounts are through transamerica and I max out my 403b (vanguard target fund 2050). I have the opportunity to put another $19,000 in a 457 tax deferred account. I can take distributions over 5-10 years when I leave this job which I plan to in 5-6 years. I'll be moving to another state and my income will be definitely lower. I would like to put my money into a low index mutual fund. Should I use vanguard target fund that has less risk? So a target fund 2030? Thanks!

bloom2708
Posts: 6392
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: where should I put my money for a short term 457(b) plan?

Post by bloom2708 » Thu Jul 11, 2019 8:47 am

I think you are "bucketing" your money too much.

What is your desired mix of stocks/bonds/fixed income based on your age and risk tolerance across your whole portfolio?

Where is your portfolio at today based on the previous question? 401k, 403b, 457, Roths, Taxable/brokerage. Look at them all together.

Target 2030 may be a great pick. About 65/35 stocks to bonds for a typical target fund. They do tend to vary, so check that specific fund.

A 457 has some beneficial rules for withdrawing, so it may well be worth stashing another $19k pre-tax.

Lay out all your funds, write down the expense ratios and figure out your stock/bond mix. See if that is where you want to be.

Good luck!
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

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