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Investing - Theory, News & General • Wiki - Prioritizing investments (proposed updates)

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I do think it’s worth mentioning [governmental 457(b) plans) have no early withdrawal penalties though.
Agreed. Something similar (ideally, less wordy) to what is in the Investment Order post:
In the lists below, thinking "first your governmental 457 (if you have one), then your 401k/403b/SIMPLE/etc." wherever "401k" appears is likely correct -
unless your governmental 457 fund options are significantly worse than those in the 401k/403b -
due to penalty-free access to governmental 457 funds at retirement, even if younger than 59 1/2.
Non-governmental 457b plans have deficiencies, including the inability to roll the balance into an IRA.
would be good.
This is what I came up with:
A governmental 457(b) behaves similarly to a 401(k) or 403(b), except that 457(b)'s have no early (before age 59½) withdrawal penalties. If a governmental 457(b) has reasonable investments and low fees, it usually makes sense to contribute to one before other retirement accounts. Non-governmental 457(b)'s and non-qualified retirement plans function very differently than most other retirement accounts. If your employer offers this type of plan, see below for details on whether and how these should be used.
Could possibly be word-smithed a bit but I think it's compact while still hitting the highlights. Still working in the color-coding.

Statistics: Posted by fyre4ce — Sat Sep 07, 2024 5:14 pm — Replies 486 — Views 42542



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