Reply to 403(b) vs. Pension

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Reply to "403(b) vs. Pension"

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[quote=Anonymous][quote=Anonymous]I think you have a valid concern with the state reducing benefits.  I would likely go with the 403b option.

DH have made it 5 years, but will he make it 25 more years?  Is there any pension benefit if DH leaves with less than 30 years of service?[/quote]

Ok, so the formula for the defined benefit is:

.015 * years of service * average final salary

The employee is making the 7% contribution, not the employer, sorry for the misunderstanding- we could also be using that money for other stuff, like savings and putting the money in a Roth IRA.

Anyway, so for DH's years of service so far, if he had taken the defined benefit he would get about [b]4200[/b] every year post-retirement.
What we did instead was do a fidelity account that was 75% stock index fund and 25% bond index fund, and right now the account has about [b]20k[/b].

DH works in IT- I have NO IDEA what his career will look like in 25 years, so that's yet another thing to think about.  I also have no idea what the stock market will look like in 25 years (when DH will be about 60).  I have to say, I hate this.[/quote]

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