No. of Recommendations: 0
If you do not follow the 401k board, please take a look at this message and give me your thoughts...I'm trying to decide if I am better off with my 403b or taxable investing...

My calculations say that I am better off with taxable investing (assuming the underlying investments have the same annual returns) because of the 1.4% annual fee assessed by ING for the 403b annuity...

Post on 401k board:


1. 1.4% seems very high. I'd check the other options;

2. Depending on how you invest (mutual funds?) you may have distributions in the taxable account that are subject to your marginal rate, not necessarily cap gains. Figure that in your computations;

3. Tax-deferred accounts have some advantages for your spouse and perhaps children for estate planning depending on your total estate (and for kids, don't forget if you and DW dies the kids also get your life insurance -- it mounts up);

4. You'll have to decide about eventual tax rates. Right now I wouldn't bet on a lower rate for me, but I am betting on the same rate.

5. At 1.4% I'd do the same thinking you are!

Not much help.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.