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Author: hockeypop Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: 403b or Brokerage? Date: 10/15/2007 8:38 AM
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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: http://boards.fool.com/Message.asp?mid=25993704&post=true

Acme


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.

Hockeypop
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