403B vs. Buying stock
wife has a 403B that she puts up to 70% of her salary in. She is 62 years old and may retire in a year. Would it be better for her to invest up to the matching amount the company provides and invest the rest in stocks? Or just keep doing what she is doing now?
Permalink Submitted by Alan - IRA critic on Tue, 2016-04-05 18:53
It is not clear which is best. The two main variables are your tax rate this year which she avoids by making pre tax deferrals to the plan and the plan’s investment option expenses. If the plan offerings and expenses are bad, and the current year tax rate is not higher than you expect in retirement, then investing the difference in a taxable account would be beneficial. Otherwise, continue as is.
Permalink Submitted by Richard Partin on Tue, 2016-04-05 20:22
Thanks Alan