emmyloo22 OP t1_j2eyckp wrote on December 31, 2022 at 7:39 PM

Reply to comment by emmyloo22 in Please help — I don’t understand my pension… can somebody ELI5?? by emmyloo22

Okay, I looked at the 457b plan and I told you guys I was dumb lol So, you do invest it.

But you have to pick your own investments and that makes me really nervous. How do I know the percent to contribute to each fund? Or pick which funds to do at all? Ahhh!

Also getting mixed answers when reading about whether to focus on the 457 versus a Roth IRA. I’m thinking the 457 would be more beneficial to me since it doesn’t have withdrawal restrictions starting at age 59.5 like most retirement accounts. Sounds like if/when I separate from my current employer, I could take that money in a lump sum, pay taxes, and decide what to do from there.

dcdave3605 t1_j2f4x7h wrote on December 31, 2022 at 8:26 PM

You invest it in what you think will get returns, but based on evidence. Look at the data given to you about your options.

Or look for something called a target date fund and pick that. It will focus investments for you based on your target date for retirement (earlier dates being less risky investments farther away dates being more risky). All investments have risks. The 457b plan is special because it allows you to withdrawal without penalty after you leave employment, rather than after age 59 1/2, like 401ks and other retirement plans. So essentially it could be your early retirement fund.