There is a 403b, HSA, and 457b offered by employer. The employer automatically contributes approximately 7% of salary into 403b and HSA (combined) both of which are target retirement funds.
403b is 50% stocks/35%international stock/8% US bond/4%international bond
HSA is 55% equity index fund/22% international equity index/12% bond index/10% other
I'm not contributing anything to the HSA myself (employer throws some money towards it though as noted above). I just started maxing out my 403b this month and also throwing a few hundred a month into a brokerage account for an ETF index fund which is obviously not tax deferrable and for my own personal use but I plan to hold onto this for a while anyway. Now I just found out if we max our 403b we also have a 457b available to us and I'm confused as to what to do.
First off, should I leave the 403b and HSA with target retirement funds? Or should I switch them to an index fund (ie: VFIAX)? I understand the target funds are "safer" but do I really need to be that safe 30+ years from retirement? As long as it's not likely to permanently lose all the money from the fund I don't think risk over the next decade or two will affect me. My thinking is I can always switch to a target retirement fund after 10-15-20 years when I'm ready to be safe as I near retirement. Is this a reasonable thought process?
My second question pertains to the 457b vs personal brokerage investment. Would that extra few hundred dollars a month getting thrown at the ETF index fund be better suited going into the 457b into an index fund such as VFIAX? Is it ok to have the same investment for the 403b and 457b? Should I get rid of the personal brokerage account (obviously non tax deferrable) and focus on getting some money into the 457b? I understand this money similar to the 403b won't be touched until retirement. Emergeny fund is set.
Submitted January 15, 2023 at 05:40AM by Linc804 https://ift.tt/kH3pKli
