UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: MTBer One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75776  
Subject: Re: Old Question/jesserivera67 Date: 12/7/2003 10:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I appreciate you answering my questions so thoroughly and in simple terms. I now feel like I have enough information to present to my CEO why a change would be useful.

I do have a few thoughts/questions.

If, for example, we went to a 403B (without the annuity component), what kind of fees would we have? For example, my 500 Index in Vanguard has that .18% fund expense, as you mentioned. If a business had their 403B through Vanguard, should I expect that the above expense in the same fund would stay the same, or would it increase? Additionally, would there also be a administrative fee? Any other fees that a typical 403B would have?

When I said "house fund", I was referring to savings to purchase my first home, which I hope to purchase within the next year. Sorry, I didn't explain that! I have been putting the majority of any additional "house savings" (monthly deposits,) into an ING savings account, as I understand that this would make more sense. However, I have been putting a small deposit, monthly, into my 500 Index toward this savings goal. After reading about how these additional deposits would qualify as "short term capital gain" (taxed as ordinary income), if I withdrew it within a year, it makes sense that I immediately stop these deposits. Right?

In the meantime, besides market risk, is there any other downside, financially, to leaving the rest of the "house fund" in this account until I am ready to purchase my home? Actually, I guess that the more the money grows, it means that much more money would be taxed at 15%. I would have to make over 17% on the investment in order to beat the 2% I would get at ING (after losing 15% on the withdrawal from Vanguard). Am I looking at this correctly?

Again, I appreciate the help. Sorry so many questions!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement