We are working 5 more years because my wife will be 55 and we will both be eligible to keep our school district health care until Medicare, which we would prefer to do rather than go to the ACA.Do you actually need to use these 457 accounts?
Each account is currently approaching the NCUA insurance limit, so the next 5 years at $31k each per year in both accounts would be in excess of it.
And why work another 5 years? If you are working for pleasure, just ignore that question.
To your question about “need[ing] to use these 457 accounts” I’m not clear on what you mean by “need” and “these”.
We are retiring before we can access our Roth IRAs, 403b and pension, so we need either a 457b or taxable brokerage since we can access those.
As to “these”, if you mean do we need to use these particular 457bs, there are only two options in our school district: one with a .73 fee plus expense ratios and probably other hidden charges too, and the other where we are at the NCUA insurance limit of $250,000 so any further funds don’t have the equivalent of FDIC insurance.
We prefer to use the 457bs to taxable brokerages because it lowers our income and makes the Roth 403bs and Roth IRAs a better deal. But we could do a taxable brokerage too.
If you meant do we need the money in these accounts, the $300,000 will hopefully be 1/8 of our investment portfolio, so it would matter. Probably any event that would take down a teachers’ credit union would be bad enough that we’d probably be afraid to retire until we can draw our pensions anyway (61.5 years old) so maybe the risk to us is zero since we’d keep working.
Statistics: Posted by Coato — Fri Feb 07, 2025 8:50 pm