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Financial Planning - Financial planning in general. (Moderated)
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Posted by Protein Chemist on May 18, 2008, 5:03 pm
I want more information about 403(b) and 457(b) plans. My employer in my
temporary job has apparently turned over financial/retirement management
of its employees' contributions to Fidelity, and I will not be
transferring any money from what I think is a zero-risk zero-return
account (called UC DCP, which I think means University of California
Direct Contribution Plan) to this account since I suspect it is loaded
with fees that would eat up any accumulations.
Or so that is what I am reading.
At this point in my complicated life---facts/details about it below, for
those of you who like to be tested by complicated life situations--I don't
expect to hire/rent/buy the services of a certified financial planner,
since my employment (and home residence) situation is not stable at the
moment. Just in case you were set on telling me to find a CFP.
I just want to know what to do with this some $6000 I have in a non-
performing retirement account. As paltry as it is, it still represents
probably 40-50% of my net worth.
========
Facts/Details about Investor's Status
* 48 y male, PhD in life sciences
* Returned in July last year to USA after 15 years abroad
* Net worth: about $6000 in a retirement account and $8000 in a checking
account; owned "home" (a flat with total market value in USD about
$100,000) in foreign country in which wife and 12 y o daughter now live
but counts as zero to net worth in effect
* Employment history since July 2007 (repatriation): abominable...keeps
head above water
* 2007 Form 1040 AGI: $12,966 (effectively last 6 months of that year,
since all other income was excluded foreign income)
* 2008 income: about $8000, including 2.5 months unemployment @ $200 per
week
* Changed residence 4 times since July 2007, currently paying little rent
to family to hold a room until permanent employment obtained
* Debt: no liabilities at all---who would give credit under these
conditions----but no assets as well (see net worth above)
* Anticipated major obligations in short or long term: college education
support for 12 year old daughter in 5-6 years; home ownership; possibly
new car ownership
* Retirement: no plans to retire at age 65 or even 70...probably will
have to work until deep-sixed the way things have looked with the year
since repatriation...to my surprise...never thought a guy with a PhD would
be so untouchable
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Posted by HW \"Skip\" Weldon on May 19, 2008, 10:55 am
On Sun, 18 May 2008 16:03:43 -0500, Protein Chemist
>
>I want more information about 403(b) and 457(b) plans. My employer in my
>temporary job has apparently turned over financial/retirement management
>of its employees' contributions to Fidelity, and I will not be
>transferring any money from what I think is a zero-risk zero-return
>account (called UC DCP, which I think means University of California
>Direct Contribution Plan) to this account since I suspect it is loaded
>with fees that would eat up any accumulations.
Because they are pre-tax and payroll deduction, these plans are
usually very good places to save. But you are right to be concerned
with costs. So before ruling them out, how about giving us an example
or two of the fees you mentioned - tell us both the fund's name
(example: Fidelity Equity Income) and the fee that bothers you.
-HW "Skip" Weldon
Columbia, SC
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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Posted by bo peep on May 19, 2008, 12:00 pm
I note that the "UC DCP" appears to be used in lieu of your normal
social security contributions, rather than in addition to it. That
*seems* like it would be a good thing.
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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Posted by Elizabeth Richardson on May 19, 2008, 1:09 pm
>I note that the "UC DCP" appears to be used in lieu of your normal
> social security contributions, rather than in addition to it. That
> *seems* like it would be a good thing.
>
Actually, it may be very detrimental. A person can work for many years in a
job that is covered by SSec, then also work in a non-SSec job. If the person
works enough, even the minimum, in the non-SSec job to earn a pension, he
has now compromised his entire Social Security benefit. And even if he has
never worked in a SSec covered position, if he earns a pension from a
non-covered position, all his spousal benefits are lost.
Elizabeth Richardson
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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Posted by Elizabeth Richardson on May 19, 2008, 1:29 pm
"Protein Chemist"
>
> I just want to know what to do with this some $6000 I have in a non-
> performing retirement account. As paltry as it is, it still represents
> probably 40-50% of my net worth.
>
If the $6k is in a non-performing account, why are you worried about putting
it in an account which would be performing, even if there are some minimal
costs? Or am I missing something here.
Elizabeth Richardson
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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