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Most of the big retirement derailers are healthcare (do you have a plan for coverage pre-medicare?) and disability (do you have own-occupation insurance?). Get an umbrella policy probably to cover liability risk. If you own a home, make sure it's insured. I wouldn't worry too much about fine tuning your investment/withdrawal strategies because laws change and what is good now may not be good in 20 years, who knows. It's good to have a mix of taxable, trad, and Roth investments for flexibility but I'd just try to max both 401k and 457 if you can for now. Remember you can access your 401k early through SEPP once you retire, so that's not a huge deal.
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Jan 25, 2022 07:25
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Before using your 457b, make sure it is a 'governmental' plan. I'm not an expert, but if it is a non-governmental, you'll want to do some research to determine if that will actually meet your needs/is worth the risk. Here's a random google search result that looks like it breaks down some of the key differences: https://wealthkeel.com/blog/what-is-a-457b-plan-and-how-does-it-work
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Jan 25, 2022 16:10
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moana posted:Most of the big retirement derailers are healthcare (do you have a plan for coverage pre-medicare?) and disability (do you have own-occupation insurance?). Get an umbrella policy probably to cover liability risk. If you own a home, make sure it's insured. Thanks for the advice, much appreciated. Any books you'd recommend? I've read the Bogleheads book on retirement planning, but I'm wondering if there's a good equivalent for FIRE planning. Fancy_Lad posted:Before using your 457b, make sure it is a 'governmental' plan. I'm not an expert, but if it is a non-governmental, you'll want to do some research to determine if that will actually meet your needs/is worth the risk. Here's a random google search result that looks like it breaks down some of the key differences: Thanks for the heads up. It's a governmental plan, so no worries on that particular front.
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Jan 26, 2022 01:11
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I've never understood the perception of risk with non-governmental 457 plans. Is the worst-case scenario you roll to an IRA or 403b/401k if you leave that employer and aren't yet ready to draw down? (I have a governmental plan myself)
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Jan 27, 2022 01:37
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sweet_jones posted:I've never understood the perception of risk with non-governmental 457 plans. Is the worst-case scenario you roll to an IRA or 403b/401k if you leave that employer and aren't yet ready to draw down? The risk is the company goes bankrupt and since it's not your money yet, you lose it all.
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Jan 27, 2022 01:56
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sweet_jones posted:I've never understood the perception of risk with non-governmental 457 plans. Is the worst-case scenario you roll to an IRA or 403b/401k if you leave that employer and aren't yet ready to draw down? You can't roll non-governmental 457b plans to a 401k/403b, IRA, or a governmental 457, only to another non-governmental 457b plan and only if that plan accepts rollovers because they don't have to unless they explicitly allow it. They also each have their own rules on how funds have to be withdrawn when you leave the employer, could be you have to take it as a lump sum immediately, could be you can leave it there or spread out withdrawals over 5-20 years. So you need to know the specific rules of your plan because another risk is you leave after accumulating a bunch of money in there and then get forced to take a huge tax hit and end up worse than just investing in taxable.
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Jan 27, 2022 02:03
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