Stocks and 457b plans

[apnutter]

Anyone have a real grasp on stocks and 457b retirement plans? I have one through work and because I have 27 more years till I can retire, I put a portion of my checks into a high risk portfolio. I was told this was the best for long term.

My question is should I diversify and have a medium or low risk portfolio as well?

I know very little about this and kind of do what my Metlife rep suggests.

 

[Smoqman]

My friend is a phenomenal financial planner. If you'd like his information, send me a PM.

 

[Jfire]

I am in no means a financial advisor. Just a dumb fireman from the south burbs of Chicago.
1. Sounds like your a city/gov employee like myself. Get use to the fact that the 27 years you have left will likely be extended. That word that starts with a P will most likely be reduced or not there when you retire. I save 10 percent of my earnings into my 457. The same amount they take out of my check for my pension contributions. So their goes 20 percent before Uncle Sam even touches it. Next look at all the fund options thru your FA firm(MetLife). You need to start asking how loaded the funds are? Front loaded fees back loaded. Maintenance fees etc. Look at the funds performance over the last couple of years to 12 months. I'm 30 percent of my portfolio in Fidelity Contra fund. It's consider high risk. The return has been over 23 percent the last two years. Do not select high, med or low risk from your funds advisor. That's the most bullshit generic answer you can give them. You need to dig deeper than that. Finally by sticking to the 10 percent rule (or maxing it hard which can be dam hard ) you should be able retire at 30 years. If that option is still on the table. I have fireman at my work that have sacrificed a lot financially, but they have over a million in their IRA........

 

[apnutter]

Joel, pm incoming. Jfire, I retire at 55 with full pension. I appreciate the info. We are able to put 14% into our 457s but right now with 1 toddler and another on the way, financially that's not possible now. Closer to retirement it will be though.

 

[Jfire]

Joel, pm incoming. Jfire, I retire at 55 with full pension. I appreciate the info. We are able to put 14% into our 457s but right now with 1 toddler and another on the way, financially that's not possible now. Closer to retirement it will be though.

Right now you retire at 55 with full pension. In 10 years I'm guessing that statement won't be able to be made. I have 19 years left till I hit my 30. And I'm already facing the fact that my pension will be severely reduced or just not there. It's a sign of the times. And I hear you about toddlers and money. But we are talking about all if this thru a cigar board. A non essential luxury item. Whatever you put in now. (Year 3) will have to be tripled in deposits in just 7-10 years. Food for thought. Good luck! You're taking the right first step. Involvement!

 

[apnutter]

Right now you retire at 55 with full pension. In 10 years I'm guessing that statement won't be able to be made. I have 19 years left till I hit my 30. And I'm already facing the fact that my pension will be severely reduced or just not there. It's a sign of the times. And I hear you about toddlers and money. But we are talking about all if this thru a cigar board. A non essential luxury item. Whatever you put in now. (Year 3) will have to be tripled in deposits in just 7-10 years. Food for thought. Good luck! You're taking the right first step. Involvement!

Haha. Ya...I hear ya with the cigar luxury and money issue. Still have to save some money to enjoy life . But my job in law enforcement is 25 years of service, 55 years of age. It's been like that for a loong time and most police depts in the state are that or 20/50. Hoping we get a state wide pension before I retire so if I transfer to another place of employment, my years of service transfer as well instead of starting over. God help me if I have to do this job till of 60-65, ughhh.