Which do you think is better in the long run for you of the above??? Defined retirement benefit where union or employer provides monthly defined money at retirement until death or deferred 403/401 account where employer makes match of up to 4-6% but you save majority of money????
Jul 21, '03
The answer depends on a LOT of things.
When would you be vested in a defined retirement plan? Do you plan to work for the same company until you retire or die? Do they plan to keep you on that long? What happens when that company gets bought out by another, and employee pension benefits are wiped out (now permitted by federal law)?
On the other hand, would you wisely invest money you have in a 401(k) or would it likely be wiped out in the next stock market drop? What investing options would you have? When would you be vested regarding the emloyer's matching contribution? It is usually a good idea to maximize your 401/403 deduction, if for no other reason than to defer taxes.
Generally, one is better off doing a 401(k) or 403(b)--then choosing a WISE place to invest it.
If you need more info than that, you would do well to hire (per-hour, NOT on commission) a financial advisor and spend 30 minutes or an hour with him/her getting personalized advice.
Last edit by sjoe on Jul 21, '03