Which option do I choose? 1.457 Before Tax 2.Roth 3.Both 457 Before Tax and Roth

https://lausd457b.voya.com/einfo/public/fundinfo.aspx?cl=LAUSDI&pl=711011PU&page=investment_informationfundperformance&domain=lausd457b.voya.com&s=hlr0wskfp0upqpqgy5gijis3&d=95f87d768fd587e0e74879b7e014a81d2a3b1131

Target Date Funds Expense Ratio  BlackRock LifePath 2020 .12  BlackRock LifePath 2030 .12  BlackRock LifePath 2040 .12  BlackRock LifePath 2050 .12  BlackRock LifePath 2060 New! .12 Balanced Portfolios  Vanguard Wellesley Income .15  Vanguard Wellington .16 Fixed  Voya Fixed Account II New! Bond Funds  Vanguard Total Bond Mkt Index .05  PIMCO Total Return .46 US Equity Funds - Large Company  American Funds Fundamental Inv .31  American Funds Washington Mutual .30  Vanguard Institutional Index Instl .04  Vanguard Growth Index .06 US Equity Funds - Small/Mid Company Expense Ratio  Vanguard Mid Cap Value Index .07  Vanguard Ext Mkt Index .06 International Stock Funds  American Funds EuroPacific Growth .50  Vanguard Developed Markets Index .07 Self-Directed Brokerage  TD Ameritrade Self-Directed Brokerage

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vgacolor t1_iughhj3 wrote on October 31, 2022 at 3:24 AM

How old are you? A lot of those Blackrock funds are target date funds so they are tailored for the year you retire.

How much money can you afford to save? What is the matching from your company?

The Roth option deducts the money after taxes, which is great for the time you retire. The normal option allows you to put in the money before taxes are paid, which means your paycheck is a little bigger. I think that having half of your contributions into each is a good idea. I put 60% on the deferred and 40% in my Roth. Eventually for retirement you want to have both types available to minimize taxes then.

Read the Wiki for more information

ferrisIS OP t1_iugj2ju wrote on October 31, 2022 at 3:39 AM

Currently 29, no matching since I have a matching pension also have a Roth and taxable with Vangaurd at the moment.

But just realizing I had options to 403b and 457

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grokfinance t1_iugirc3 wrote on October 31, 2022 at 3:36 AM

Yuck, an insurance company administering the plan. That spells high fees and sub-optimal investment choices.

I'd be tempted to go with the Vanguard Institutional Index Fund which tracks the S&P 500. According to Vanguard's web site that has an expense ratio of 0.04%. How much is Voya charging?

ferrisIS OP t1_iugix1v wrote on October 31, 2022 at 3:37 AM

I know, feee seen high!

I’ll get back once I find their fees

Familyguy01 t1_iugjtn2 wrote on October 31, 2022 at 3:46 AM

I have a pension at work too. I went with straight US Stock Fund for past 3 years. It had a much better growth than messing with target date funds.

My personal strategy: when my total amount gets up to say 1mil, i will just buy into the target date fund then.

ferrisIS OP t1_iugkx8r wrote on October 31, 2022 at 3:57 AM

Which one is the US stock fund?

Familyguy01 t1_iuk4d0l wrote on October 31, 2022 at 10:58 PM

Thats what its called in my 457b. I dont have your company 457b. I have looked thru yours and i cant make out based on just names alone. If your read the fund bios you may see something that talks it invests in broad market US stocks. Thats how i found it in mine besides saying its called US Stock Fund.

Familyguy01 t1_iuk4lvf wrote on October 31, 2022 at 11:00 PM

Looks like Vanguard growth index fund based on its awful return this year.