Moving 457 Account to Vanguard

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Coldfins
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Joined: Tue Oct 27, 2020 9:08 pm

Moving 457 Account to Vanguard

Post by Coldfins »

I recently retired and plan on moving by 457 account with VALIC to Vanguard where I have a Roth IRA. The funds will be rolled over to a traditional IRA and is currently in the Vanguard Target Retirement 2025 Fund. I am looking for a single fund to move the money into so my question is leave it in the Target Retirement or move it to another fund. For what its worth the Roth IRA is split between VTI, VXUS, BNDX and BND.
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retiredjg
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Re: Moving 457 Account to Vanguard

Post by retiredjg »

There is no reason to change away from the target fund unless you just don't want a target fund any more. One reason you might not want a target fund is you might not want it to move toward more bonds with time.

Vanguard offers the LifeStrategy series of funds (which are at 80/20, 60/40, 40/60 and 20/80) which have the same ingredients as their target funds but which do not change stock to bond allocation with time. Are you interested in something like that?
Topic Author
Coldfins
Posts: 3
Joined: Tue Oct 27, 2020 9:08 pm

Re: Moving 457 Account to Vanguard

Post by Coldfins »

I looked at the Life Strategy funds but will probably leave it where it is in the 2025.

Thanks for the input
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sergeant
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Re: Moving 457 Account to Vanguard

Post by sergeant »

What is your age and when will you need to access it for expenses? 457b accounts have more liberal withdraw rules that an IRA.
For the ashes of his fathers, And the temples of his gods. | Pensions= 2X yearly expenses. Portfolio= 40X yearly expenses.
MHA556
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Joined: Wed Sep 01, 2021 8:01 am

Re: Moving 457 Account to Vanguard

Post by MHA556 »

sergeant wrote: Fri Oct 22, 2021 4:15 pm What is your age and when will you need to access it for expenses? 457b accounts have more liberal withdraw rules that an IRA.

Yeah I agree with this concern- 457 accounts aren’t always something you want to completely close out. I am not old enough to pull from anything else without penalty. My plan is to convert a lot of it, over a few years, but likely not close it out for quite a while.

Additionally, my 457 account has access to a guaranteed 3% fund. At some point I may want to use it...
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sergeant
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Location: The Golden State

Re: Moving 457 Account to Vanguard

Post by sergeant »

MHA556 wrote: Fri Oct 22, 2021 7:10 pm
sergeant wrote: Fri Oct 22, 2021 4:15 pm What is your age and when will you need to access it for expenses? 457b accounts have more liberal withdraw rules that an IRA.

Yeah I agree with this concern- 457 accounts aren’t always something you want to completely close out. I am not old enough to pull from anything else without penalty. My plan is to convert a lot of it, over a few years, but likely not close it out for quite a while.

Additionally, my 457 account has access to a guaranteed 3% fund. At some point I may want to use it...
My 457 has a 3.25% guarantee SV fund. That is why I kept my account open and only converted part of it to an IRA.
For the ashes of his fathers, And the temples of his gods. | Pensions= 2X yearly expenses. Portfolio= 40X yearly expenses.
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