Should I take the money out of 457 account?

[marlakay]

We have 3 years before my husband is 62 and we were going to use it. We are semi retired now living on part time work and state pension.

My husband is freaking and I don't know what to do.

[TechBear_Seattle]

1. You probably want to speak to your broker

Too much depends on your particular situation and financial state. That's why you have a broker or financial advisor, right?

[dhpgetsit]

2. Talk to a financial adviser.

Now may be the worst time to pull out. I'm staying in, but I'm not quite as close to retirement age as that.

[marlakay]

3. I haven't talked to anyone since we moved out of state

the guy who advised us was in CA and we are in WA now. I guess we could try to call him. I have been just hoping like hell what he set up 3 years ago was still okay. I know that sounds stupidly naive now!

[A HERETIC I AM]

4. It might make sense to roll it into an IRA

Rolling it into an IRA would allow you to invest in virtually any way you like, from a cash account to a Money Market fund, CD's all the way to very aggressive or even speculative investments.

Surrendering it completely, meaning you get a check for the entire balance and put it in your checking or savings account is rarely a good idea because of the tax consequences. The entire amount would be added to your AGI for the year.

Give your old FA a call or find a new one in your area.

[Celebration]

6. this sounds reasonable

There is no substitute for having complete control of your investments.

Thankfully my husband's retirement account allows self direction, and we have been rolling over intermediate term CDs in a Charles Schwab account for over a year--all under FDIC limits of course.

[GoesTo11]

5. Freaking won't do any good

Whether it's a good decision or not should depend on the long term prospects for keeping it in vs. taking it out, considering tax implications of both early withdrawal and of deferred gains (ha). We don't know what will happen with the market, but just the way our emotions work, it doesn't make sense to make huge decisions just based on losing a few nights' sleep. Take a breath. Talk to an advisor - even if you have to pay a couple hundred bucks for a fee-only advisor - before doing something big.