No. of Recommendations: 0
I am about to leave a corporate job for one at a university. I'm 54 years old, have a military pension and hope to retire in about 4 - 5 years. My income objective in retirement is between $90K - $100K per year of which about $50K will come from the military pension (inflation adjusted). Our (my wife's and mine) total nest egg is about $750K of which $100K is in a rental property I inherited and may sell at some point in the future. Of the remaining $650K, about $390K is non-retirement (Mutual Funds, Money Market Fund, Bonds, CD's with a heavy weighting toward stock funds) and about $260K is in retirement vehicles (401(K)'s, IRA's and an annuity, also with a heavy stock orientation). My new job will pay 7.25% of salary into a retirement fund (TIAA-CREF) regardless of whether or not I make a contribution to the 403(B) plan (and without reducing my salary - "free money" if you will). I can, if I wish, contribute up to an additional $10K annually into the 403(B). The big question: considering my objectives and current financial situation, does it make more sense to contribute $10K annually to the 403(B) or to take that amount (reduced by taxes) and put it in a non-retirement vehicle such as Vanguard S&P Index? (I'm in a 31% Federal/7.5% state tax bracket now but my lower university pay may drop me back to 28% Federal).
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!
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.