PhiTiger1764 LSU Fan Lurker since Aug 2003 Member since Oct 2009 2870 posts
Roth IRA vs. 457 Plan (LA State Employee) (Posted on 1/1/13 at 10:39 pm)
I'm a Louisiana state employee. Currently I'm contributing around $3k per year to the LA Public Employees Deferred Compensation Plan in addition to my mandatory LASERS contributions. I was hoping the board could give me some advice on this plan compared to a Roth IRA. I've done some research and both plans obviously have their benefits, but I'm not going to pretend to know which plan would be better for me and why.
I'm 25, have been working for 18 months, and am just trying to build a nest egg. I have no debt and don't plan on accessing this money until retirement age unless I absolutely need it. Also, I do not know that I will remain a state employee for the duration of my professional career.
My Questions. As I begin to increase my contributions, should I open up a Roth IRA or continue to just put in to the 457 plan? Should I just drop the 457 plan and contribute to a Roth until I'm maxing it out? Any advice is appreciated.
GenesChin Ole Miss Fan The Promise Land Member since Feb 2012 3185 posts
re: Roth IRA vs. 457 Plan (LA State Employee) (Posted on 1/2/13 at 2:06 am to ATL TGR)
quote: Nope. Contribute to both. No reason not to plan for your future
If you can afford to put money in both why not? Short term sacrifice for long term happiness.
My dad isnear retirement who is a top 1-2% income earner is having problems because he started saving late then had problems with how he has saved. Said that his biggest mistake was not saving early when he could have