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Subject:  Choices in 457 plan Date:  11/19/1998  4:31 PM
Author:  rosemeade Number:  6679 of 103886

I am fortunate to have as part of my employment a deferred compensation plan in addition to the County sponsored/required pension. The pension is a mandatory 5% per pay, the 457 deferred compensation plan has a contribution ceiling of $7,500 per year (I think). I have also been using the payroll deduction plan for savings bonds.
With the pension, the 457 and the bonds, I am saving approx. 10.5% of gross pay per annum. I am planning on using the increase in my salary in 1999 to increase the amount I send to the 457.

I have had some trouble deciding how to allocate the money in the 457's available funds. I have searched the names of the funds as listed in the statements from the Hartford, the plan manager, but have not been able to find information on all of them.
I have money going in equal amounts into Janus 20 and American Century: Twentieth Century Ultra. The plan also offers a general fixed rate account, to which I send a small portion of the money (20%). My other choices include Hartford Index fund, and other various Hartford and other accounts, divided into growth or growth and income.

1. Should I send all the funds to one account, or continue to divide up the money?
2. Should I ditch the savings bonds and plow that money into the 457? (I suspect I will since the income is deferred for the 457 contributions and the savings bonds are bought with post-tax dollars).
3. Should I forgo the 457's general fixed rate account which is currently paying 6.05% and put all the money into one or more funds?

I am 40 years old, and will also in 15 years start paying for my daughter's college education. (which is where those savings bonds already purchased will probably go.) I am also beginning to invest in a few stocks as well, but am able to get more information on those items than I can find on many of the funds in the 457.

Thanks for any insight/advice.

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