Comparison: 403(b) VS. 457

Ownership
457 - Held in trust by LAUSD for exclusive benefit of Participant/beneficiaries

403(b) - Participant

Investments
457 Various risk investments
Chosen by LAUSD Investment Committee

403(b) Annuities and mutual
Funds offered by vendors

Early Withdrawals
457 - Extraordinary and
Unforeseeable emergencies

403(b) Severe hardship when all other resources have
been exhausted (10% penalty free)

Timing of Distributions
457 - May be taken at
Severance from employment

403(b) - May be taken beginning At age 59 ½

This is some of the LAUSD Posting comments
I am a teacher in the LAUSD. My husband and I are already max'ing out my 403b and his 401k. We have extra money to invest/save and are in a high tax bracket.

The only 457b LAUSD offers is with AIG VALIC, which I have read is horrible with hidden fees.

Is a bad 457b like AIG VALIC worth investing in for the tax break, or should we invest in a taxable account? 0

Formatting is a mess on this message board. Anyway, the first column is the name of the fund, the 2nd is the fund expense ration, the third is the revenue sharing, the fourth is Valic's fee and the fifth is the total cost to you the participant. All of these costs are to be presented at any presentation.

In our last two meetings, we have proposed dropping and replacing Dreyfus S&P 500 and Turner Mid Cap to lower cost funds.
Hope this helps

No, you cannot set it up through Vanguard. Setting up the 457b is done on the VALIC website.

In my previous post, the fees of all of the funds are listed. To no surprise around here, the Vanguard funds have the most money so far as reported to the committee by the VALIC reps.

LAUSD 457 Plan Services

LAUSD negotiated the contract with AIG VALIC to include:

• Minimum servicing level standards
• $500,000 education materials budget
• Administrative performance standards and reporting
• 5-year contract, but LAUSD may terminate for Convenience.
• Further reduced fees as 457 assets grow, which cane be as low as 0.00% administrative fee

For a detailed comparison please click here

_______________________________________________________________________

Moti Gur is a Registered Representative with and securities offered through
Financial Network Investment Corporation.
A registered broker/dealer, Investment advisor and member FINRA/ SIPC
3807 Wilshire Blvd, Suite 1040 Los Angeles, CA 90010 213-385-6237
http://www.financialnetwork.com